Transcript Slide 1
INDUSTRIAL MANAGEMENT ACADEMY
PRESENTATION ON
EMPLOYEES’ PROVIDENT FUND ACT AND SCHEME
EMPLOYEES’ PENSION SCHEME
EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME
by Mr. A. N. Roy,
Formerly Additional Central Provident Fund Commissioner,
Govt. of India
INDEX
SLIDE NO.
PARTICULARS
3–62
EMPLOYEES’
PROVIDENT
FUNDS
&
MISCELLANEOUS PROVISIONS ACT, 1952 AND
EMPLOYEES’ PROVIDENT FUND SCHEME, 1952.
63–147
EMPLOYEES’ PENSION SCHEME, 1995 – A NEW
ERA IN SOCIAL SECURITY.
148–152
THE EMPLOYEES DEPOSIT LINKED INSURANCE
SCHEME, 1976.
153–166
SOCIAL SECURITY – GLOBAL PERSPECTIVE.
167–175
SOCIAL SECURITY – INDIAN CONTEXT.
INDEX
EMPLOYEES’ PROVIDENT
FUNDS & MISCELLANEOUS
PROVISIONS ACT, 1952
AND
EMPLOYEES’ PROVIDENT
FUND SCHEME, 1952
INDEX
EMPLOYEES’ PROVIDENT FUND
ORGANIZATION, INDIA
A Statutory Organization under the administrative
Control of Ministry of Labour, Govt. of India.
Performing the task of enforcing the provisions of the
Employees Provident Fund & Miscellaneous
Provisions Act, 1952 and the Scheme framed
thereunder.
AND
Providing service delivery to the members of the
Fund and their family members in accordance with
the Scheme.
INDEX
EMPLOYEES’ PROVIDENT FUNDS AND
MISCELLANEOUS PROVISIONS ACT, 1952
Schemes Framed and Implemented
Employees’
Provident Funds
Scheme, 1952
Employees’ Deposit
Linked Insurance
Scheme, 1976
Employees’
Pension
Scheme, 1995*
*Formerly Employees’
Family Pension
Scheme, 1971
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS AND
MISCELLANEOUS PROVISIONS ACT, 1952
Statement of Objects and Reasons
The question of making some provision for the future of the industrial
worker after he retires or for his dependents in case of his early death, has
been under consideration for some years. The ideal way would have been
provisions through old age and survivors’ pensions as has been done in
the industrially advanced countries. But in the prevailing conditions in
India, the institution of a pension scheme cannot be visualized in the near
future. Another alternative may be for provision of gratuities after a
prescribed period of service. The main defect of a gratuity, however, is
that amount paid to a worker or his dependents would be small, as the
worker would not himself be making any contribution to the fund. Taking
into account the various difficulties, financial and administrative, the most
appropriate course appears to be the institution compulsorily of
contributory provident funds in which both the worker and the employer
would contribute. Apart from other advantages, there is the obvious one of
cultivating among the workers a spirit of saving something regularly. The
institution of a provident fund of this type would also encourage the
stabilization of a steady labour force in industrial centres.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS ACT, 1952
Section 5 of the Act, empowers Central Government
to frame & notify Employees’ Provident Fund
Scheme, for the benefit of employees working in
establishments to which the act applies.
As per Section 5(1A) the fund shall vest in and be
administered by, the Central Board of Trustees
constituted under Section 5A of the Act.
The Central Board of Trustees administers the fund
through its operational setup viz., The Employees’
Provident Fund Organization.
INDEX
OPERATIONAL STRUCTURE & SOURCE
The Employees’ Provident Fund Act, 1952 (Since renamed as the
Employees’ Provident Funds & Miscellaneous Provisions Act, 1952)
enacted by the Central Government for institution of Provident Fund
on contributory basis, for the benefit of employees working in
establishments in Industrial & Commercial sectors.
Over the period, the contributory provident fund system has
been enlarged gradually combining pension and insurance benefits in
an integrated manner.
Central Government notified –
The Employees’ Provident Fund Scheme, in 1952;
The Employees’ Family Pension Scheme, in 1971 followed by the
Employees’ Pension Scheme in 1995; and
3.
The Employees’ Deposit Linked Insurance Scheme in 1976.
[Sec. 5, 6A & 6C]
Central Board of Trustees, a tripartite statutory body constituted to
administer the funds.
[Sec. 5(1A), 6A(4) & 6C(5)]
1.
2.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952
Primary objectives for enactment in brief has been :
Providing old age / post service financial support / income security to
the member / dependent survivors.
Assigning employers liability to make contribution in raising the fund
for the benefit of employees and their dependent survivors on
compulsory basis.
Promoting thrift habit amongst employees and enlarging domestic
savings base.
Providing risk free and immunized deposit accretion to the member
free from attachment etc.
Augmenting resource availability position for national economic
development.
THE EMPLOYEES’ PROVIDENT FUNDS
& MISCELLANEOUS PROVISION ACT, 1952
INDEX
GENERAL / INTRODUCTORY:
A major social security legislation in India for benefit of the workers in
general employed in Industrial/Commercial sectors.
Targeted for extending
member/family members.
Provides for contributory Provident Fund on compulsory basis with
extended coverage of pensionary package and Deposit Linked
Insurance in an integrated manner.
Structured as self-applying law – implementation through employers
of the establishment on self-complying basis.
It extends to whole of India except the State of Jammu and Kashmir.
Presently three Schemes are in operation – viz.
(i)
(ii)
(iii)
post service/survivors
support to the
Employees’ Provident Fund Scheme, 1952.
Employees’ Pension Scheme, 1995
(formerly Employees’ Family Pension Scheme, 1971).
Employees’ Deposit Linked Insurance Scheme, 1976.
INDEX
I.
Applicability
Applies to establishments belonging to notified
category employing 20 or more persons – (5
employees in case of Cinema/Theatre establishment
and 50 employees in case of Co-operative Society
working without power).
No infancy protection from September, 1997.
Provision exist for coverage on voluntary basis for
non-applicable category.
Central Government empowered to exempt any class
of establishment from the operation of the Act for
specified period.
THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
INDEX
The Act shall not apply to :a)
Any establishment registered under the “Co-operative Societies
Act, 1912 or any other law in force relating to cooperative
societies, employing less than 50 (Fifty) Persons and working
without the aid of power, or
b)
Any establishment belonging to or under the control of the
Central or State Government and whose employees are entitled
to the benefits of CPF or old age pension in accordance with the
scheme / rule notified by the central / state government; and
c)
Any statutory body whose employees are entitled to the
benefits of CPF / Old age pension in accordance with the
scheme / rule framed under that act governing such benefits.
[Repeal of Sec. 16(1)(d) of the EPF & MP Act, 1952, vide Act 10 of 1998 shall
have prospective form 22.9.1997 – infancy protection accrued to
establishments prior to amendment would remain available.]
[SL. Srinivash Jute Twine Mills (P) Ltd. vs. UOI & Ors. (Supreme Court)]
C.A. No.–6777/2003 with C.A. 6778-80/2003. Judgement dated 15.2.2006
THE EMPLOYEES’ PROVIDENT FUNDS
& MISCELLANEOUS PROVISION ACT, 1952
INDEX
Applicability:
[Sec. 1(3) of the Act]
Subject to the provisions contained in Sec. 16, the act shall apply:
(a)
In every establishment which is a factory engaged in any industry
specified in schedule I in which twenty or more persons are employed, and
(b)
To any other establishment employing twenty or more persons or class of
such establishments which the Central Government may, by notification in
the official Gazette, specify in this behalf.
It is the notification extending the provisions of the scheme to an
establishment par se that attracts his liability and not the service of notice
on the employer that has this effect; it is an absolute and unqualified
liability not depending on the vigilance of the department or on the will of
the employer to make the workmen members of the scheme.
Nazeena Trades (P) Ltd.
vs.
The Regional P.F. Commissioner
[1966 (I) LLJ 334]
THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
INDEX
1.
ESTABLISHMENT :
The term “establishment” has not been defined in the
Act, and consequently, it shall have to be given its
ordinary meaning with reference to the definition of the
term “factory”.
[E. Delhi Cloth & General Mills Co. Ltd.
vs.
Regional P.F. Commissioner, U.P.
[1961 (2) LLJ 444]
Unlike
others
Acts where either the expression
“establishment” or other words analogous there to are
used in conjunction with such expressions as “in the
course of business or trade”, in the Act, the word
“establishment” is not qualified in any way. It only
means an organized which employees certain number of
persons and nothing more”.
[Cosmopolitan Club, Madras
vs.
Regional P.F. Commissioner, Madras
[1967 (1) LLJ 797]
II. Membership
INDEX
Every employee to be enrolled to the
membership of the fund from day one (eligibility
requirement deleted from November 1990
onwards).
Membership compulsory for all except excluded
employees.
Membership for all the schemes necessary –
either of statutory scheme or exempted scheme.
Assigned responsibility upon employer of the
establishment for Contractors employees.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
1. Defines the term “International Worker” by inserting Para 2(ff).
(a) An Indian employee having worked or going to work in a foreign Country with
which India has entered into a Social Security Agreement And being eligible to
avail benefits under a Social Security Programme of that country for eligibility
gained or going to gain
(b) A foreign national holding other than an Indian Passport working for an
establishment in India.
2. Substitutes the parameter components of the term “Excluded Employee” In
relation to International Workers – Para 2 (f) as under :An International Worker who is contributing to a Social Security Programme of
his / her country of origin, either as a citizen or resident, With whom India has
entered into a Social Security Agreement on Reciprocity basis and enjoying the
status of detached worker for the Period and terms as specified in such
agreement.
-commonly understood usual clause of ‘Prescribed Pay Ceiling’ not Provided.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
3.
Provides for revised membership enrollment related parameters,
compulsory Membership for all International workers other than an
‘Excluded Employee,’ without voluntary enrollment on joint request
4.
Pay ceiling limit for contribution payment liability not provided for.
Contribution
payable
on
total
Salary
5.
Prescribes separate return submission requirement for International workers.
V.
IMPORTANT TERMINOLOGY IN BRIEF
1.
‘Employer’ [Sec. 2(e) of the Act)
2.
A.
For Factory Establishment
i)
Owner or occupier or their agent and
ii)
Manager, if any
B.
For Other Establishment
i)
Person holding ultimate control; and
ii)
Manager/Managing Director/Managing Agent etc.
INDEX
‘Employee’ [Sec. 2(f) of the Act]
Any person employed for wages in or in connection with the work of an
establishment including persons employed, if any.
i)
ii)
3.
by or through contractor; and
an apprentice engaged otherwise than under the Apprentice Act,
1961 or standing order of the establishment.
‘Excluded Employee’ [Para 2(f) of the scheme]
i)
Former member of the EPF taken final settlement of PF under
para
69 of the Scheme.
ii)
An employee whose pay at initial entitlement of membership
exceeds prescribed pay ceiling.
iii)
An apprentice.
A partner is not an “employee”.
Regl. Director, ESIC vs. Ramanujam Match Factory [AIR-1985-SC-278]
Managing Director/Director with specified function for specified annual remuneration is an “employee”.
ESIC vs. Apex Eng. (P) Ltd. [1988-1-SCC-86]
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
“Excluded Employee” definition as provided in Para 2(f) of the EPF Scheme,’52 read with
Varying parameters as provided for Special category employees in Para 80 – 83.ibid.
====================================================
(A) ‘Excluded Employee’ means :(i) An employee having been a member of the EPF, withdraw the full accumulation from
The Fund on exit after attaining the age of 55years;
(ii) An employee (other than an employee in News Paperestablishment) whose Pay at the
time of membership enrollment entitlement exceeds prescribed pay ceiling of
Rs.6500/- per month (Rs.25000/- per month for disabled employees and Rs.1600/-per
Month for cine workers ) ;
(iii) An Apprentice. (other than News Paper & Cine establishments employees
(B) “Excluded Employee” for International Workers shall mean :An International worker who is contributing to a social security programme of his/her
Country of origin, either as a citizen or resident, with whom India has entered into a
Social Security Agreement on reciprocity basis and enjoying the status of detached
Worker for the period and terms as specified in such agreement.
THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
“Employee” [Sec. 2(c)]. Casual employment if covered
INDEX
…..The word “employment” must, therefore, be construed as
employment in the regular course of business of the establishment;
such employment obviously would not include employment of a few
persons for a short period on account of some passing necessity or
some temporary emergency beyond the control of the company.
This must necessarily require determination of the question in each
case on its own peculiar facts.
[The Regional P.F. Commissioner, Andhra Pradesh vs. T. S. Hariharan,
{1971(1) LLJ.416: 1971(22) FLR 260}]
“Where an establishment employs temporary employees as a part of
the regular feature of employment, such employees cannot be
construed as Casual employees…..”
[Chatram Agarwala vs. Regional P.F. Commissioner, Orissa {1972(1) LLJ 603]
“…..The number of persons, who are ordinarily regularly employed
in the establishment, should be counted for the purpose of Sec.
1(3)(a) of the Act, as distinct from merely temporary or Casual
employees engaged for some abnormal or emergent purposes other
than the normal work of such establishment.
[Bikaner Cold Storage Co. Ltd. vs. Regional P.F. Commissioner, Rajasthan, 1981(1) LLJ 181]
III.
Contribution
INDEX
Contribution is payable by Employer and Employee
both equally.
Employer is required to deposit the contribution
and
authorized
to
recover
employees’
share/undertake contract labourers’ liability.
Basic rate of P.F. contribution – 10%
Higher rate of P.F. contribution – 12%
(Basic rate applicable on 5 Industries namely
Beedi, Brick, Jute, Coir & Guar-gum Industries and
establishments
engaging
less
than
20
employees/sick units).
Contribution is payable separately for all the three
schemes as prescribed.
“Contribution” – Provision [Sec. 6]
INDEX
“Contribution” – The contribution which shall be paid by the employer to
the Fund shall be 8[ten per cent] of the basic wages, 9[dearness allowance
and retaining allowance (if any)] for the time being payable to each of the
employees 1[whether employed by him directly or by or through a
contractor], and the employee’s contribution shall be equal to the
contribution payable by the employer in respect of him and may, 2[if any
employee so desires, be an amount exceeding 8[ten per cent] of his basic
wages, dearness allowance and retaining allowance (if any), subject to the
condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under this section].
2[Provided
that in its application to any establishment or class of
establishments which the Central Government, may, by notification in the
Official Gazette specify, this section shall be subject to the modification
that for the words “8[ten per cent]”, at both the places where they occur,
the words 8[“12 per cent]” shall be substituted].
3[Explanation
I.] – Dearness allowance shall be deemed to include also the
cash value of any food concession allowed to the employee.
5[Explanation
II.] – “Retaining allowance means allowance payable for the
time being to an employee of any factory or other establishment during any
period in which the establishment is not working, for retaining his services.
“Basic Wage” means all emoluments which are earned
by an employee while on duty or on leave or on holidays
with wages in either case, in accordance with the terms
of contract of employment and which are paid or
payable in cash, but excluding:
(1)
Cash value of food concession;
(2)
Dearness allowance, i.e., all cash payments
on a/c of rise in cost of living, House rent
allowance, overtime allowance, Bonus,
Commission or any other similar allowance
payable to the employee in respect of his
employment or work done in such
employment and;
(3)
Any presents made by the employer.
[Sec. 2(b)]
INDEX
SUPREME COURT DECISION
Minimum Wage notified – whether – can be split up ?
Minimum Wage as notified will be a package and
shall constitute wage. Law does not permit it to be
split up taking advantage of the components taken
into consideration for its determination by the
competent authority, i.e., the Government.
[Air Freight Corporation Ltd. vs. State of Karnataka & Ors.
1999 – LLR – 1008 (SC)]
“Special Allowance” being paid along with salary
Constitute basic wage. Exclusion shall qualify for
items specified in clauses (i), (ii) & (iii) of Sec. 2(b) of
the EPF & MP Act, 1952 only.
[Gujarat High Court :– Gujarat Cypronet Ltd. vs. Assistance PF
Commissioner (0225-1-LLJ)]
(Kolkata High Court :– Vivekanand Vidya Mandir vs. RPFC
(2005-LLR-392)]
INDEX
LEAVE ENCASHMENT – P.F. CONTRIBUTION
PAYMENT EXEMPTION
“Encashment of Leave” will not attract Provident Fund Contribution payment
liability – Definition of ‘Basic Wage’ as given u/s 2(b) of the E.P.F & M.P Act, 1952,
did not intend to include such type of payments – contribution already deposited
may be adjusted from future payments to be made.
Supreme Court decision in the case of : Manipal Academy of Higher Education –
vs – RPFC. [2008 – LLR – 243]
Note:- Reliance placed on earlier interpretation given by the Apex Court in Bridge
& Roof case- [1963(2) SCR 978]
Test Norm Followed:
(1). Where the ‘wage ‘ is universally, necessarily and ordinarily paid to all across
the
board, such emoluments are basic wage.
(2). Where the payment is available to be specially paid to those who avail of the
opportunity is not basic wage.
(3). Any payment by way of a special incentive or work is not basic wage.
INDEX
Wage Components not attracting P.F Contribution
1.
House Rent Allowance., Overtime Allowance, Bonus Commission or any other similar
allowance payable to the employee in respect of his Employment or work done in
such employment.
(Provision u/s 2(b)(ii) of the EPF & MP Act.,’52.)
2.
Any presents made by the employer.
(Provision u/s 2(b)(ii) of the EPF & MP Act.,’52.)
3.
Any ex-gratia / ad-hoc payment in lump sum as a result of bilateral settlement with
unions.
(High Court ruling given in the case Burma Shell Oil Storage & Distributing Co. Ltd.vs-RPFC, Delhi [1981(2)LLJ86,] and EID parry (I) Ltd.-vs-RPFC. [1985-FJR-205])
4.
Back wages on reinstatement awarded by Courts
(Gujrat High Court ruling given in the case of Swastik Textile Engineers (P) Ltd.-vsVirijibal Mavjibhai Rathod & another [2008-LLR-472])
5.
Notice Pay / Retrenchment Compensation paid as per law u/s 33(2)(b) of I.D.Act.
(Dinesh Khare-vs-Ind. Tribunal, Rajasthan, Jaipur & others.[1959 LIC.517]
Ghanshyam & Co. – vs – RPFC, Delhi [ 51 FJR 357 ]
RPFC –vs– Southern Alloy Foundry. [1982(1)LLJ.28 ])
INDEX
COMPLIANCE OF STATUTORY OBLIGATION BY PRINCIPAL EMPLOYER
IN RESPECT OF CONTRACT LABOUR CANNOT BE A DECIDING FACTOR
FOR HOLDING THAT CONTRACT LABOUR ARE EMPLOYEES OF
PRINCIPAL EMPLOYER
----------------------------------------------------------------------------------------------------------
Complying of statutory liability by the Principal
Employer for payment of ESI and Provident Fund
Contributions for the employees engaged through
Contractor will not be a deciding factor and it cannot
be held that the workers of the Contractor should
become the employees of the Principal employer as
the company cannot shirk from statutory obligation..
Bhartiya Kamgar Sena – vs – Udhe (I) Ltd. & Another
– Bombay High Court.
[2008 – LLR – 344 ]
INDEX
Bill of Rights of Employees
• Right to membership of Provident Fund, Pension and EDLI
Schemes for every employee of covered establishment
drawing monthly basic pay and D.A. upto Rs. 6,500.
• To receive Annual Statement of Provident Fund Account by
30th September of the following year.
• To obtain claim form free of cost from any Provident Fund
Office.
• To obtain assistance/guidance from Public Relations
Officers in filling up of forms.
• To submit claim application in any office of EPFO and
obtain acknowledgement.
• To get partial withdrawals settled within a maximum period
of 30 days for specified purposes.
Contd.
• To get final withdrawals settled within 30 days from the date of
submission of claim.
• To get the accumulations transferred to employee’s new account within
30 days of change of employer and to execute nomination for receiving
Provident Fund accumulations/pension.
• To register grievance and get redressal.
• To approach Office-in-charge of any office for redressal of grievance
without prior appointment.
• To receive Provident Fund dues from Special Reserve Fund:
o in case of non-payment by employer of contribution deducted from
wages;
o in case of non-payment by the employer of establishment closed for
more than three years.
o in case of fraudulent withdrawal from employee’s account.
Contd.
• To demand from the visiting Enforcement Officer an authority
issued by RPFC/APFC.
• To get Business Number allotted within three days from the
date of application.
• To approach the Employees’ Provident Fund Organisation to
seek clarification/guidance relating to Provident Fund matters.
• To be heard before imposition of any liability on account of
contribution and penal damages.
• To get various forms free of cost.
• To demand improved service delivery for subscribers of
establishments.
INDEX
IV. Benefit Admissibility
1)
Provident Fund Scheme ’52 :
Lump sum payment of accretion with interest on
retirement / leaving the job.
Partial withdrawal during job for specified purposes.
2)
Deposit Linked Insurance Scheme ’76 :
Upon death while in service – additional payment in
lump sum equal to average P.F. accretion subject to
maximum of Rs. 60,000.
3)
Employees’ Pension Scheme, 1995
Pension to member on retirement / invalidity.
Pension to Family members on member’s death.
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
INDEX
Provisions relating to payment of contribution by the employer
and recovery of members share of contribution/contribution in
respect of contractors employees.
The employer shall in the first instance pay both the shares of
contribution payable, i.e., the “employers” as also the
“employees share” in respect of all categories of employees
including the persons engaged by or through contractors.
[Para – 30(1)]
The contractor shall pay to the principal employer the
contributions payable in respect of contractors employees, both
shares and also the administrative charges.
[Para – 30(2)]
It shall be the responsibility of the principal employer to pay
both the contribution payable by himself in respect of employees
directly employed by him as also the employees engaged by or
through a contractor and also the administrative charges.
[Para – 30(3)]
INDEX
Not withstanding any contract to the contrary, employers’ share
not to be deducted/recovered from the members.
[Para – 31(1)]
Members contribution paid by the employer shall be recoverable
by means of deduction from the wages for the relevant
month/period of the member and not otherwise.
[Para – 32(1)]
Recovery of members’ contribution for past period could be
permitted by the Provident Fund authorities in the event the
recovery is necessitated for bonafide error as a result of (i) false
declaration given in writing by the employee concerned or (ii) for
an accidental mistake or clerical error.
[Proviso under Para 32(1)]
Deduction of contribution made from the wage of the employee
shall be deemed to have been entrusted for the purpose of
paying the contribution to the fund as prescribed.
[Para – 32(3)]
INDEX
OFFENCES UNDER THE EPF & MP ACT AND
SCHEMES THEREUNDER
The following acts on the part of any person/employer constitute offence :
(i)
For the purpose of avoiding any payment to be made under the Act or
Scheme by himself or of enabling any other person to avoid such
payments, knowingly making or causing to be made any false statement
or false representations.
(ii) Failure to pay any contribution and/or administrative charges as
specified under para 38 of the EPF Scheme, para 10 of Family Pension
Scheme and para 8 of EDLI Scheme/inspection charges payable under
Section 17(3) and 17(3A) of the Act which he is liable to pay.
(iii) Deductions or attempt to deduct from the wages or any other
remunerations of a member, the whole or any part of the employers’
contributions;
(iv) Failure or refusal to submit any return, statement or other document
required by the scheme or submission of false return, statement or other
document or making a false representation;
(v) Obstructing any Inspector in the discharge of his duties or failure to
produce any record for inspection by such Inspector or other official;
(Section 14 of the Act and para 76 of Employees' Provident Fund Scheme, 1952)
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
INDEX
Circumstances in which accumulations in the Fund are
payable to a member by way of final settlement.
[Para – 69 of EPF Scheme, ‘52]
Accumulations in the provident fund account of a member
becomes payable for final settlement under following
situations:(i)
(ii)
(iii)
(iv)
(v)
(vi)
On retirement from services after attaining the age of 55
years;
On retirement as a result of total and permanent disablement
rendering incapable for work;
Immediately before migration from India for permanent
settlement abroad or for taking employment abroad;
Termination
of
service
upon
mass
or
individual
retrenchment;
Termination of service under a voluntary retirement scheme;
and
Termination of job and remaining unemployed for over two
months or leaving the job from a covered establishment and
joining an establishment not covered by P.F.
INDEX
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
– Permissibility of advances under para 68
The Scheme provides for drawal of advance from Provident Fund
accumulation while in service, under following situations :1.
2.
3.
4.
5.
6.
7.
8.
9.
For purchase/acquiring a dwelling house/flats including site for the
purpose. [Para – 68B]
For repayment of housing loan. [Para – 68BB]
Upon closure of establishment and non-payment of wages. [Para – 68H].
For meeting medical expenditure involving hospitalization/Surgical
Operation. [Para – 68J]
For meeting the cost of marriage or post matriculation education of
children. [Para – 68K]
Upon damage of property as a result of natural calamity. [Para – 68L]
Upon reduction in wage earning as a result of cut in electric supply to the
establishment. [Para – 68M]
For purchasing support equipment for physically handicapped. [Para –
68N]
Before one year of retirement after attaining 54 years of age. [Para –
68NN]
[NOTE: Form 31 is prescribed for applying for advance]
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
INDEX
Duties of Employer’s [Para – 36 & 36A of EPF Scheme, 1952]
(i)
The employer is required to enroll every employee, other than an
excluded employee, to the membership of the fund and furnish its details
to P.F. authorities in Form-9.
(ii) The employer is required to obtain declaration in Form-11 from every
new employee joining the establishment as to his previous membership
details, if any, and help arrange transfer process if required.
(iii) The employer is required to report to the P.F. authorities every month in
prescribed return in Form-5 as to joining of new employees during the
return period and the enrollment details to the membership of the fund.
Likewise, the employer is required to report the exit cases during the
relevant period in Form-10.
(iv) The employer is also required to obtain from every employee/new
entrant. Their Family/Nominee details in Form-2 and forward it to the
P.F. authorities.
(v) The employer is required to remit contribution every month together
with remittance details in Form 12/12A by 15th of the following month.
The employer is required to furnish annual return in Form 3A/6A for the year
ending [April-March] by 30th April every year summarizing memberwise
contribution remittance details reconciling with the monthly remittances
made;
The employer is required to submit to the P.F. authorities initially and as and
when there is any change, particulars of ownership in Form-5A.
The employer is required to endorse the application seeking settlements /
transfers in respect his employees, as and when it becomes due, and
forwarded the same to the P.F. authorities for needful action.
The employer is required to submit necessary details as may be desired by
the P.F. authorities and submit returns that may be prescribed.
The employer is required to maintain an inspection note book for recording
observation upon inspection of the establishment by an Inspector.
The employer is required to carry out the directions, if any issued, by P.F.
authorities for the purpose of carrying out the requirement of the act and the
schemes framed thereunder.
The employer is required to exhibit the compliance details for general
information of the members, and allow inspection of contribution card details
if desired.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952
Exemption – Provisions
Section 17 of the Act,
exemption admissibility.
provides
for
The term “Exemption” does not mean
allowing establishment to go out of the
purview of the P.F. law. But it means only
relaxation from the operation of the
statutory
Scheme
provisions
in
an
authorized manner.
Exemption needs to be taken separately for
separate Schemes.
INDEX
Exemption from EPF Scheme is admissible upon comparable
benefit admissibility at par or more beneficial than Statutory
Scheme – Benefits in the nature of contributory Provident
Fund or combination of Provident Fund and Pension and/or
Gratuity.
Exemption process provides for :-
(a)
(b)
(c)
Individual exemption.
Class of employees exemption.
Exemption of the establishment as a whole.
Authority competent to grant exemption.
(a)
(b)
(c)
Individual exemption–Regional PF Commissioner.
Class of employees – Appropriate Government.
Establishment as a whole – Appropriate Government.
INDEX
[(1A)] Where an exemption has been granted to an establishment
under clause (a) of sub-section (1), –
(a)
the provisions of sections 6, 7A, 8 and 14B shall, so far as
may be, apply to the employer of the exempted
establishment in addition to such other conditions as may be
specified in the notification granting such exemption, and
where such employer contravenes, or makes default in
complying with any of the said provision or conditions shall
be punishable under section 14 as if the said establishment
had not been exempted under the said clause (a);
(b)
the employer shall establish a Board of Trustees for the
administration of the provident fund consisting of such
number of members as may be specified in the Scheme;
(c)
the terms and conditions of service of members of the Board
of Trustees shall be such as may be specified in the Scheme;
(d)
The Board of Trustees constituted under clause (b) shall –
INDEX
(i)
maintain detailed accounts to show the contributions credited,
withdrawals made and interest accrued in respect of each employee;
(ii)
submit such returns to the Regional Provident Fund Commissioner or
any other officer as the Central Government may direct from time to
time;
(iii) invest the provident fund monies in accordance with the directions
issued by the Central Government from time to time;
(iv) transfer, where necessary, the provident fund account of any
employee; and
(v)
perform such other duties as may be specified in the Scheme.
(1B) Where the Board of Trustees established under clause (b) of sub-section
(1A) contravenes, or makes default in complying with, any provisions of
clause (d) of that sub-section, the Trustees of the said Board shall be
deemed to have committed an offence under sub-section (2A) of section 14
and shall be punishable with the penalties provided in that sub-section.
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952
INDEX
Exemption Provisions – Employees Pension Scheme, 1995
Sec. 17(1C) [as amended by act 25 of 1996] provides for
exemption admissibility.
Para 39 of the Employees Pension Scheme 1995
prescribe detailed conditionalities.
Exemption is permissible for the “Establishment” as a
whole only – No partial exemption permissible for class
of employees or individual employee.
Exemption admissible upon comparable pensionary
benefit availability at par or more beneficial than
statutory scheme.
Appropriate
exemption.
Government
is
competent
to
allow
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952
INDEX
Exemption Provision – Employees Deposit Linked Insurance Scheme, 1976
Sec. 17(2A), (2B), (3) & (3A) and para 28 of the
EDLI Scheme ’76 provides for exemption
admissibility and related conditionalities.
Exemption
is
admissible
for
employee/Class
of
employees
establishment as a whole.
Exemption permissible on life insurance
coverage without members contribution with
better benefit quantum admissibility.
Central Provident Fund Commissioner
competent to grant exemption.
Individual
or
the
is
THE EMPLOYEES’ PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952
INDEX
Provisions Relating to “Contractors Employees”
Liability enjoined with the employer of the
establishment whose work is done, i.e., the
principal employer.
Provisions apply uniformly with
employees of the establishment.
Contractors unit has no locus-standi separately
for the purpose of applicability [Section 2(f) &
6 of the Act].
Principal employer is empowered to recover
the contribution & other charges from the
contractor [Section 8A of the Act].
regular
Principal employer is authorized to obtain
requisite details relating to engagement of
contractors employees and other related
information from the Contractor.
The Contractor is liable to submit such details
/ information to the Principal employer every
month / as and when required.
[Para 36B of the Scheme]
Principal employer to secure the requirement
from the Contractor and ensure reporting
compliance.
[Para 30 & 32 of the Scheme]
Failure/default will entail principal employers’
liability with attendant penal measures.
COMMON HINDRANCE IN THE MATTER OF
COMPLIANCE FOR “CONTRACTORS EMPLOYEES”
INDEX
Operational complexities arising as a result of
short duration and frequent mobility of
Contract employees in changing employment &
place of work.
Lack of awareness among Contract employees
and seriousness on the part of employer/Trade
Unions.
General aversion of the employer.
Avoiding tendency for fear of complication.
Common reservation in accepting parity/
responsibility with regular employees of the
establishment.
“Contractors Employees” Compliance under the EPF & MP Act, 1952 –
Suggested course for safeguarding employers statutory liability:
(1)
Obtain copy of the wage/salary payment scroll from the
Contractor relating to persons engaged for contract work and
retain it on record.
(2)
Verify Correctness of the employment details furnished in
keeping with work assignment and deployment of workers
there against.
(3)
Ensure remittance of Provident Fund contributions in respect
of employees engaged by or through contractors and retain
supporting document.
(4)
Ensure verification/identification process upon entry/exit in
respect of “contractors employees”.
(5)
Obtain requisite details relating to submission of returns in
regard to, “contractors employees” from the contractors
concerned on month to month basis.
(6)
Periodically verify correctness of direct compliance if any
made by the contractor in respect of contract employees.
(7)
Correlate release
clearance.
of
security
deposit
with
compliance
SUPREME COURT RULING ON RESPONSIBILITY OF “PRINCIPAL EMPLOYER” FOR
CONTRACTORS EMPLOYEES IN REGARD TO EMPLOYEES PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952 COMPLIANCE
INDEX
I.
Employment classification attracting liability :-
Persons engaged by/through contractor with or without the
knowledge and/or approval of the employer of the
establishment; and
Persons working with the material, finance or otherwise
assistance from the employer or through agent of the
employer/contractor.
Work need not be carried on at employers’ place. Working
elsewhere or even at the home of the worker shall attract the
liability.
It is only when the contractor engages labour for or on his own behalf and supplies
the finished product to the establishment, employers liability will not arise. A
genuine sale transaction could point in this direction as an independent contractor.
Authority of the employer in issuing direction or right of rejection in such cases
could vitiate the position.
Case reference :
1.
2.
Mangalore Ganesh Beedi Works vs. UOI [AIR 1974 (SC) 1832]
P.M. Patel & Ors. vs. UOI & Ors. [AIR 1987 (SC) 447]
SUPREME COURT RULING ON RESPONSIBILITY OF “PRINCIPAL EMPLOYER” FOR
CONTRACTORS EMPLOYEES IN REGARD TO EMPLOYEES PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952 COMPLIANCE
II.
Regulatory points for consideration
INDEX
To be an employee it is necessary that the relationship of
master and servant exists.
For establishing master and servant relationship the authority
of the employer to supervise and control the work of the
employee is prime requirement.
In determining the element of supervision and control,
physical presence of the worker or overseeing their
operational performance personally by the employer, nor
working in the employers’ place are essential. Even working
at home of the worker suffice.
Authority of the employer or employers agent providing
specification requirement of the work and right to rejection
has been recognized as adequate yardstick to meet the
requirement.
Case reference :
1.
2.
Mangalore Ganesh Beedi Works vs. UOI [AIR 1974 (SC) 1832
P.M. Patel & Ors. vs. UOI & Ors. [AIR 1987 (SC) 447]
“Contractors employees” compliance under the
EPF & MP Act 1952 – Consideration for enjoining
Principal employers liability
INDEX
The primary consideration for tagging “Contractors
employees” liability with the principle employer could be for
reasons such as:(i)
Contract work in most cases will not be on regular basis
and that the contractors normally may not have formal
set up and continuity of their establishment /
enterprise; and
(ii) The employer of the establishment contracting out the
work is getting the work done for his benefit. Both the
work element and the resource to do the same flow from
the employer of the establishment and passes through
the contractor. The work output is also derived by the
principal employer. The principal employer, therefore,
remains the source authority Compliance securing
linkage from such a unit will be comparatively easier.
INDEX
I. Prevailing requirements for submission of Returns by
the employers of the establishments
S.
No.
UN-EXEMPTED
ESTTS.
(1) Form 5A
(2)
(3)
(4)
(5)
(6)
(7)
Form 9
Form 5
Form 10
Form 3A
Form 6A
Form 12A
ESTABLISHMENTS EXEMPTED
FROM EPF SCHEME, 1952
(1) Form 5A – Common for both
Un-exempted and exempted
establishments
(2) Form 3 (PS) (8) Form 1 (IF)
(3) Form 4 (PS) (9) Form 2 (IF)
(4) Form 5 (PS) (10) Form 3 (IF)
(5) Form 7 (PS)
(6) Form 8 (PS)
(7) Form 6 (PS) (11) Form 4 (IF)
II. Classification & periodicity of existing Returns and
information aspect there against
Form No.
Periodicity
INDEX
Purpose
FOR FURNISHING ONE TIME INITIAL INFORMATION
(1) Form 5A
Initially once.
Subsequently as and when there is
change.
Details of establishment
owners/Directors etc.
and
the
(2) Form 9
Initially once.
Updated monthly
through information furnished in F/5 &
F/10.
Details of employees entitled to become
member on the date of coverage.
PERIODICAL INFORMATIVE RETURNS
(3) Form 5
Monthly
New Members added during the month.
(4) Form 10
Monthly
Existing members leaving during the
month.
ACCOUNTING RETURNS
(5) Form 12A
Monthly
Contribution/Adm. Charges under the
three schemes due and remitted by the
establishments.
(6) Form 3A
Monthly / Annual
Individual subscriber’s Ledger Card –
maintained
by
the
employer
–
contribution entered on monthly basis –
closed at the end of the year and sent to
EPFO alongwith F/6A.
(7) Form 6A
Annual
Consolidated annual statement of
contribution due and remitted in respect
of all the members.
III. Declarations required to be submitted by the members
Employer to forward to the Employees Provident Fund Authorities
(1) Form 11
Initially on joining
service.
Subsequently
as
and when there is
change.
Declaration by the
employees
on
taking
up
employment
–
whether
already
member or not.
(2) Form 2
Initially on joining
service.
Subsequently
as
and when there is
change.
Nomination Form
and
details
of
family
for
the
purpose
of
regulating benefit
payment under the
three
Schemes
upon death of the
member.
Payment of Provident Fund
(Para 70 & 72 of EPF Scheme 52)
Accumulation in the fund is payable to the member on
submission of a claim in Form-19 in the manner
prescribed.
Upon death of the member, the accumulation in the
fund on submission of claim in Form-20, shall be
payable to:(i)
(ii)
Nominee – if any valid nomination exist;
Members of the family other then major sons and married
daughters;
(iii) Legal Successors;
NOTE:(a)
(b)
If the amount to be paid does not exceed Rs. 10,000, the
Commissioner, if satisfied about the title of the Claimant, may
authorise payment without requiring “Succession Certificate”.
Amount payable to a minor shall be remitted to the Guardian
appointed under law or the natural guardian.
Otherwise, the
commissioner, if satisfied and the amount is below Rs. 20,000
may remit to proper person representing the minor.
Statutory Obligation for time bound Settlement of
PF / Pension / EDLI Claims
Accountability of Commissioner
(Paras: 72(7) of EPF-52, 24(4) of EDLIS-76 & 17A of EPS-95)
Claims Complete in all respect and submitted with
requisite documents shall be settled and benefit
amount paid to the beneficiaries within 30 days
from the date of receipt of the Claim;
Deficiencies in the Claim, if any, shall be recorded
in writing and communicated to the applicant
within 30 days.
Failure in settling the claim submitted duly by 30
days time limit, shall entail personal liability to the
Commissioner to pay penal interest @ 12% p.a. on
the benefit amount deductible from the salary of
the Commissioner.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
(Special provisions for specific class of employees)
====================================================
Para – 80.
Added vide S.R.O.2981 dated 4th. December,1956.
-------------------------------------------------------------------------------------------------------
Applicable for News paper establishments and news paper employees Relates
to The Working Journalists (Conditions of Service & misc. Provisions) Act.,1955,
effective from 31.12.1956.
3
1.
Provides substituted paragraph 2(f) varying “Excluded Employee” Parameters
excludes prescribed pay ceiling clause.
2.
Contains eligibility clause of 3 months continuous service, or worked
For 60 days in 3 months time, or declared permanent, whichever is earlier
For membership enrollment.
Provides News paper establishment specific membership enrollment /
Retention of membership and Resolution of Disputes relating to member
Ship provisions in substitution of Para 26, 26A and 26B of the original
EPF Scheme,’52.Pay ceiling limit clause for contribution payment Liability not provided for.
3.
4.
Provides for voluntary enrollment upon joint request from the employer
And the employee concerned.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
=========================================
Para-81. Inserted G.S.R. 687 dated 24.08.1987-effective from 5th
September, 1987
• Applicable for Cine Workers as defined in clause ( c ) of sec.2 of the Cine
Workers and Cinema Theatre Workers (Regulation of Employment) Act,
1981. The term Industry and the employee to be correlated / construed
With the term ‘Film Production’ and ‘Cine Workers’ defined in Cine
Workers & Cinema Theatre Workers (Regulation of Employment) Act,1981
1. “Excluded Employee” clause excludes ‘Apprentices’ – Pay ceiling limit At
Rs.1600/-p.m continues unchanged.
2. Contains revised membership enrollment and related provisions with
Voluntary membership permissibility on joint request clause.
3. Pay ceiling limit for contribution payment liability not provided for.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
(Special provisions for specific class of employees)
==========================================
Para – 82.
Special provisions for ‘Employees ‘ with disabilities .
Inserted vide G.S.R. 253(E) dated 31.3.2008 – effective from 1st.April,’08.
--------------------------------------------------------------------------------------------------------1. Disabilities norm prescribed under the Persons with disabilities (Equal
opportunities,
Protection of Rights and Full participation) Act,1995 and the National Trusts for
Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
disabilities Act, 1999 to be followed.
2. “Excluded Employees” clause provides for enhanced salary limit of Rs.25000/- per
month Instead of Rs.6500/- per month provided in main scheme.
3. Provides for ‘Employers share of Contribution’ payment on salary upto Rs.25000/p.m. By the Central Government for Three years.
4. Prescribes declaration in relation to ‘Disabilities’ and Returns for employment of
persons With disabilities under Para 34 and 36 respectively.
5. Third proviso under Para 38(1) added specifying Central Governments paying
Responsibility of ‘Employers Share of Contribution’ for a maximum period of
3 years only.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
1. Defines the term “International Worker” by inserting Para 2(ff).
(a) An Indian employee having worked or going to work in a foreign Country with
which India has entered into a Social Security Agreement And being eligible to
avail benefits under a Social Security Programme of that country for eligibility
gained or going to gain
(b) A foreign national holding other than an Indian Passport working for an
establishment in India.
2. Substitutes the parameter components of the term “Excluded Employee” In
relation to International Workers – Para 2 (f) as under :An International Worker who is contributing to a Social Security Programme of
his / her country of origin, either as a citizen or resident, With whom India has
entered into a Social Security Agreement on Reciprocity basis and enjoying the
status of detached worker for the Period and terms as specified in such
agreement.
-commonly understood usual clause of ‘Prescribed Pay Ceiling’ not Provided.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
3.
Provides for revised membership enrollment related parameters,
compulsory Membership for all International workers other than an
‘Excluded Employee,’ without voluntary enrollment on joint request
4.
Pay ceiling limit for contribution payment liability not provided for.
Contribution
payable
on
total
Salary
5.
Prescribes separate return submission requirement for International workers.
THANK YOU
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
A NEW ERA IN SOCIAL SECURITY
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
Effective from 16.11.95, a Pension Scheme
has been introduced for the members by
partial diversion of their future Provident
Fund contributions.
The Scheme is named
Pension Scheme, 1995.
as
Employees’
The Employees’ Pension Scheme, 1995
replaces the Employees’ Family Pension
Scheme, 1971.
EMPLOYEES’ PENSION SCHEME, 1995
INDEX
The Scheme is applicable to all
factories and other establishments to
which the Employees’ Provident Funds
and Miscellaneous Provisions Act,
1952 applies.
The Scheme is meant for members of
the Provident Funds subscribing to
Employees’ Provident Fund Scheme,
1952 or any scheme exempted
thereunder.
EMPLOYEES’ PENSION SCHEME, 1995
MEMBERSHIP ELIGIBILITY
INDEX
(I) Compulsory Membership
All Provident Fund subscribers including
those
employed
in
Exempted
Establishments
contributing
to
the
Employees’ Family Pension Scheme, 1971;
and
All new entrants to the Provident Funds
Scheme, 1952 from 16.11.95 onwards,
automatically become members of the
Employees’ Pension Scheme, 1995.
(ii)
Membership on Optional basis
INDEX
Existing members of Exempted and Unexempted Provident Fund Scheme as on
15.11.95 who are not members of the
Family Pension Scheme, 1971.
Members of the Family Pension Scheme,
1971 who left employment between
1.4.1993 – 15.11.95 whether they have
withdrawn their benefits or not.
Beneficiaries of Family Pension Scheme
1971 who have died on or after 1.4.1993.
EMPLOYEES’ PENSION SCHEME, 1995
CONDITIONS FOR OPTION TO JOIN THE SCHEME
INDEX
(i)
For Existing Members
Entitled to join retrospectively with effect from 1.3.1971 or
the date of joining the EPF whichever is later.
Should pay the arrears of contribution with interest thereon.
(ii)
For erstwhile Family Pension fund members who
left between 1.4.93 & 15.11.95
If not withdrawn the benefit, Pension benefit will be based
on service as on the date of exit. No extra contribution to
be made.
If benefits already withdrawn, option available from the
date of exit, on refund of amount & interest thereon.
INDEX
EMPLOYEES PENSION SCHEME, 1995
Retention of membership of Pension
Fund: [Para – 6A]
A member of the Employees Pension
Fund shall continue to be such member
till he attains the age of 58 years, or he
avails the withdrawal benefit to which
he is entitled under para 14 of the
scheme, or dies, or the pension is
vested in him in terms of para 12 of the
scheme, which ever is earlier.
INDEX
FUNDING OF THE SCHEME
No separate/additional contribution
employees pension scheme.
is
payable
8.33% of subscribers “Pay” by diverting from employers’
share of Provident Fund contributions.
1.1.6% of subscribers’ pay shall be
Government as Government contributions.
Existing assets and liabilities of the ceased Family Pension
Fund, 1971 as on 16.11.95 will from the corpus of the
Scheme.
Provident Fund accumulations upto 15.11.95 (both shares
with interest will remain available to members in toto.
Likewise the balance of 1.67%/3.67% employer’s share
of contribution in case of 10%/12% contribution rate will
continue to remain in Provident Fund.
paid
by
for
the
EMPLOYEES’ PENSION SCHEME, 1995
DESIGN STRUCTURE OF THE SCHEME :
INDEX
A “Benefit defined social insurance scheme”.
Designed with “social security” thrust following “Actuarial
principles”.
Provides for “Old age and invalidation benefits to the member
alongwith survivorship coverage to the family upon death of the
member.
The Employees Pension Scheme 1995; provides for following
benefit package.
I.
For Member
(i) Pension Payment for life on Retirement/Superannuation.
(ii) Pension Payment for life on invalidation during employment.
(iii) Lump sum payment to the member by way of Commutation
of Pension upto one third pension amount on optional basis.
(iv) Capital return on option formula basis upon cessation of
members pension payment.
INDEX
II.
Pension payment to Family Members
upon Death of the Member
(i)
To spouse for life or until remarriage.
(ii)
To children (two at a time) till they attain the age
of 25 years additionally alongwith pension
payment to spouse:For total & permanently disabled children pension
for life and without any bar of two children at a
time.
(iii)
Orphan Pension to Children at higher rate upon
cessation of Pension Payment to Spouse.
(iv)
To Nominee/Dependent parents for life in case
member is unmarried or having no eligible family
member.
EMPLOYEES’ PENSION SCHEME, 1995
INDEX
The scheme, in its benefit
precisely covers as under:-
package
(i)
Pension payment to the member against
contribution component diverted –
permitting
commutation/return
of
capital on option formula basis; and
(ii)
Complete security coverage to the family
members for pensionary support in the
event of members death delinking
contribution component altogether on a
Social Insurance Pattern.
EMPLOYEES’ PENSION SCHEME, 1995
INDEX
The Scheme covers members death risk
unconditionally – i.e., irrespective
of
whether such death occurs.
(i)
while in service;
(ii)
away from employment and not
contributing to the fund; or
(iii)
after retirement as a pensioner.
The family members shall remain
entitled for pensionary support uniformly.
EMPLOYEES’ PENSION SCHEME, 1995
INDEX
Special provisions made in the scheme to facilitate
benefit availability / delivery for seasonal / casual
employees
Employees engaged seasonally in any establishment,
the period of “actual service” in any year,
notwithstanding that such service is less than a year,
shall be treated as full year for eligibility purpose
[Para 9(a)];
Pensionable salary will be worked out “Notionally” for
full month in the event of drawl of salary for a part of
the month [Para 11(2)].
Pensionary benefits shall be extended to the members
without co-relating compliance by the employer of the
establishment [Para-16A].
THE EMPLOYEES PENSION SCHEME,1995
========================================
Para-43A. : Special Provisions in respect of “International Workers “as
defined in Para-83 of the Employees Provident Fund Scheme, 1952.
[Inserted vide Notification No.G.S.R.705 (E) dated 1.10.2008]
The Scheme shall, in its application to International Workers, as defined
in Paragraph 83 of the Employees Provident Fund Scheme,1952 be
subject to the following Modifications, namely:(1)
(2)
(3)
(4)
“Pensionable Service” – substituted definition provided for clause
(xv) of Para-2
“Determination Of Pensionable Service” – substituted Provisions
of sub-Para(1) of Paragraph-10. Sub-Para(2)Unchanged.
“Determination of Pensionable Salary” - substituted provision
notified for Para-11
“Benefits on leaving service before being eligible for monthly
members’ pension” - substituted provisions notified for Para-14.
THE EMPLOYEES PENSION SCHEME,1995
============================================
1. Definition Of Pensionable Service:
[Clause (xv) of Para-2]
---------------------------------------------------------------------------------------------------------Pensionable Service’ means the service rendered by the member covered by a
international social security agreement for which contributions have been received or
are receivable, the period of service rendered and considered as eligible under such
agreement.
-Contribution receipt in Employees Pension Fund clause substituted and correlated
With agreement provisions.
2. Determination of “Pensionable Service”
[Sub-Para (1) of Paragraph-10]
-------------------------------------------------------------------------------------------------------‘Pensionable Service’ of the member covered by an international social security
Agreement shall be determined with reference to the contributions received or are
Receivable on his behalf in the Employees Pension Fund, the period of service Rendered
under a relevant social security programme and considered as eligible For benefits shall
be added only for the purpose mentioned under such agreement.
-Permissibility for adding foreign service period for eligibility reckoning providedSub-Para (2) provision for weightage of 2 years addition for 20 years contributory
Membership with Employees Pension Fund remains applicable.
THE EMPLOYEES PENSION SCHEME,1995
======================================
3. Determination of “Pensionable Salary “
[ Para-11 ]
-----------------------------------------------------------------------------------------------------The ‘Pensionable Salary’ shall be the average monthly pay drawn in any manner
Including on piece-rate basis during the contributory period of service of the
Membership of the Employees Pension Fund. Proviso under Sub-Para (1) for ignoring
non working period in average Calculation of last 12 months’ Pay, notional calculation in the event of Noncontributory period during last 12 months
period under sub-Para (2), And permissibility of contribution payment option on salary
higher than the Prescribed Pay ceiling limit for pension entitlement on such higher pay
provided for in sub-Para (3) of Para 11 stands omitted
THE EMPLOYEES PENSION SCHEME,1995
=======================================
4. Benefits on leaving service before being eligible for “Monthly Members’ Pension”
[ Para – 14 ]
--------------------------------------------------------------------------------------------------(1) If a member not being an Indian employee, hailing from a country with which
India has entered into a social security agreement, has not rendered theiligible
Service prescribed in paragraph-9 on the date of exit, or on attaining 58 years of
age, whichever is earlier, he/she shall be entitled to a benefit as may be
Prescribed in the said Agreement on reciprocal basis.
(2)
If a member not being an Indian employee hailing from a country with which
India has not entered into a social security agreement, has not rendered the
Eligible service specified in paragraph-9 on the date of exit, or on attaining the 58
years of age, whichever is earlier, his/her entitlement to the withdrawal Benefit
under paragraph-14 shall be, on the principle of reciprocity, as may be Available
to Indian employees in that country.
Right to Refund benefit and/or obtaining Scheme Certificate for future carryover
not provided for.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
TYPES OF MONTHLY PENSION PAYABLE
Member Pension
:
On superannuation / Disablement.
Widow Pension
:
Upon death of the member while in
service, away from employment or after
superannuation as a pensioner.
Children Pension
:
Additionally alongwith Widow Pension.
Orphan Pension
:
After death of the member and the
Widow/Widower or on Ceasing Widow
Pension payment on remarriage of
Widow/Widower.
Nominee Pension
:
Upon death of the member having no
Family.
EMPLOYEES’ PENSION SCHEME, 1995
EXEMPTION
INDEX
There are provisions for Exemption under the Scheme.
Establishments already having any Pension Scheme or
Intend to adopt any Pension Scheme with pensionary
benefits on par or superior than the statutory Scheme
are eligible to avail of the Exemption.
Exemption application is to be disposed off within a
period of 6 months.
During Pendency of Exemption application, diversion
of contribution to Pension Fund will not be required.
On grant of Exemption, withdrawal benefit payable to
the outgoing members, shall be allowed to be
paid/transferred to the Exempted Fund.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
VALUATION OF THE FUND
The fund will be actuarially valued every
year.
The surplus arising out of such valuation
will be utilized to improve the benefit
quantum.
Annual valuation is expected to provide
extra addition to pension quantum every
year to the existing pensioners.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
COMMUTATION OF MEMBER PENSION
Option is available for commutation of Member
Pension.
Commutation is permissible upto 1/3rd of pension
amount.
Commuted value will be hundred times of pension
amount so commuted.
Upon commutation, the balance amount of pension
payable shall be the monthly pension. Capital
return option under para 13 in such cases will be
restricted balance amount of pension only.
N.B.: Facility withdrawn vide notification dated 26.9.2008
PENSION OPTION FOR CAPITAL RETURN
INDEX
An important feature of the Pension Scheme is to allow a member to
choose any one of the following options providing for pension with return
of capital:
OPTION
1.
2.
Reduced pension during life time
pensioner with return of capital on
his death.
Reduced pension during member’s
life
NORMAL
PENSION
REDUCED
PENSION
RETURN OF
CAPITAL
Rs. 1,000
Rs. 900
Rs. 1,00,000
Rs. 1,000
Rs. 900
(member)
Reduced pension during spouses’
life time
Rs. 800
(spouse)
Return of capital to nominee after
death of spouse
Rs. 90,000
[In addition the spouse will be getting normal window pension of Rs. 500
per month]
3.
Pension for fixed period of 20 years.
Rs. 1,000
Rs. 875
Rs. 1,00,000
(after 20 years
to him/her or to
nominee)
COMPARATIVE CHART OF ANTICIPATED INTEREST INCOME FROM
P.F. ACCUMULATION DIVERTED TO PENSION FUNDS-VIS-À-VIS
PENSIONARY BENEFITS AVAILABLE THERE AGAINST
ASSUMED: i) Initial pay Rs. 1000 per month with assumed increase @ 10% per annum.
ii) Provident fund contribution accumulation @ 8.33% on wages/salary per month.
iii) Interest income on safe investment @ 12% per annum.
Year
Expected Pay
Accumulated
Contribution
Interest Income
Normal
Pension
Option Pension
Return of Capital
10
2593
25606
256
370
333
37000
15
4177
64816
648
895
806
89500
20
6727
145935
1459
2114
1903
211400
25
10835
308268
3089
4179
3761
417900
30
17449
625526
6255
7977
7179
797700
35
28102
1234853
12349
14854
13669
1485400
40
45259
2389584
23896
27155
24440
2715500
NOTE: 1. OPTION 1 PENSION EXCEEDS INTEREST INCOME FROM PROVIDENT FUND ACCRETION
DIVERTED TO PENSION FUND.
2. PENSION OF CAPITAL ON DEATH OF PENSIONER / CESSATION OF MEMBER PENSION
PAYMENT EXCEEDS ACCUMULATED PROVIDENT FUND CONTRIBUTION.
3. PENSION QUATUM SHOWN ABOVE REPRESENTS INITIAL ENTITLEMENT ONLY. SAME
IS LIKELY TO INCREASE ON YEAR TO YEAR BASIS.
4. ONLY SUPERANNUATION / RETIREMENT PENSION ENTITLEMENT COMPARED.
PENSION ENTITLEMENT ON DISABLEMENT / FAMILY PENSION ENTITLEMENT WILL BE
FURTHER ADDITIONALITY.
PENSION INCOME PERCENTAGE ON CONTRIBUTION
INDEX
CORPUS DIVERTED FORM PROVIDENT FUND
Year of
Service
Accu
Capital
Component
Monthly
Pension
Payable
Yearly
Pension
Payable
Earning of
Pension to
Capital %
Incase of
Reduced
Pension by
10% less
1
2
3
4
5
6
10
25605
371
4452
17.4
15.66
15
64816
895
10740
16.6
14.94
20
145940
2114
25368
17.4
15.66
25
308868
4179
50148
16.2
14.58
30
625526
7977
95724
15.2
13.77
35
1234858
14854
178248
14.4
12.96
40
2389584
27156
325872
13.6
12.24
CALCULATION OF AMOUNT ACCRUAL IN FAMILY PENSION FUND ACCOUNT (1971 SCHEME) VIS-À-VIS WITHDRAWAL
BENEFIT ADMISSIBILITY THEREAGAINST (AS PER SCHEDULE UNDER PARA 32 OF THE SCHEME)
Period
Rate of
Interest
Salary Ceiling
contribution payment
Contribution @ 1 1/6 of
Salary (employee share)
Contribution diverted
for the year
Interest Payable (On
Opening Balance)
Total
(Cumulative)
Withdrawal benefit
admissible
3/71 – 2/72
5.50%
1000
12 x 12
144
0.00
144.00
200.00
3/72 – 2/73
5.50%
1000
12 x 12
144
7.92
295.92
410.00
3/73 – 2/74
5.50%
1000
12 x 12
144
16.27
456.19
620.00
3/74 – 2/75
5.50%
1000
12 x 12
144
25.09
625.28
840.00
3/75 – 2/76
5.50%
1000
12 x 12
144
34.39
803.67
1060.00
3/76 – 2/77
5.50%
1000
12 x 12
144
44.20
991.87
1290.00
3/77 – 2/78
5.50%
1000
12 x 12
144
54.55
1190.42
1510.00
3/78 – 2/79
5.50%
1000
12 x 12
144
65.47
1399.89
1750.00
3/79 – 2/80
5.50%
1000
12 x 12
144
76.99
1620.88
1980.00
3/80 – 2/81
5.50%
1000
12 x 12
144
89.15
1854.03
2230.00
3/81 – 2/82
7.50%
1000
12 x 12
144
139.05
2137.08
2470.00
3/82 – 2/83
7.50%
1000
12 x 12
144
160.28
2441.36
2720.00
3/83 – 2/84
7.50%
1600
19 x 12
228
183.10
2852.46
4768.00
3/84 – 2/85
7.50%
1600
19 x 12
228
213.93
3294.39
5184.00
3/85 – 8/85 & 9/85 – 2/86
7.50%
1600/2500
19 x 6 + 29 x 6
288
247.08
3829.47
8775.00
3/86 – 2/87
7.50%
2500
29 x 12
348
287.21
4464.68
9450.00
3/87 – 2/88
7.50%
2500
29 x 12
348
334.85
5147.49
10125.00
3/88 – 2/89
8.50%
2500
29 x 12
348
437.53
5933.02
10850.00
3/89 – 2/90
8.50%
2500
29 x 12
348
504.30
6785.32
11550.00
3/90 – 10/90 & 11/90 – 2/91
8.50%
2500/3500
29 x 8 + 41 x 4
396
576.75
7758.07
17220.00
3/91 – 2/92
8.50%
3500
41 x 12
492
659.44
8909.51
18235.00
3/92 – 2/93
8.50%
3500
41 x 12
492
757.31
10158.82
19320.00
3/93 – 2/94
8.50%
3500
41 x 12
492
863.50
11514.32
20405.00
3/94 – 9/94 & 10/94 – 2/95
8.50%
3500/5000
41 x 7 + 58 x 5
577
978.71
13070.03
30700.00
3/95 – 15/11/95
8.50%
5000
58 x 8.5
493
694.35
14257.38
*Converted
6806.00
7451.42
14257.38
to Pension
Add: Employers Share
14257.38
Payment
TOTAL CONTRIBUTION WITH INTEREST
28514.76
Under EPS-95
Own contribution (Total)
**Member Pension Rs. 500/- pm with commutation facility of 1/3rd pension (Rs. 16,666/-) OR Reduced Pension Rs. 450/- pm with return of
capital and commutation facility (Total Rs. 50,000/-) PLUS Family Pension to Spouse with children or nominee after death of the member.
INDEX
Statement showing contribution accretion in “Pension Fund” on salary ceiling Payment
vis-à-vis the Pensionary entitlement for member on superannuation
Period
Reference
Contribution accretion with
interest @ 8.5% per annum
w.e.f. 18.11.95
Total
Contribution
accretion
Member Pension entitlement on
superannuation / retirement
Past
Service
period (FPF
’71 A/c upto
15.11.95)
Pensionable
Service period
EPS’95 (From
16.11.95
onwards)
EFPS – 1971
&
E.P.S. – 1995
28,515
NIL
28,515
(170 + 335)
Y.E. 31.3.96
29,424
1,478
30,902
31.3.97
31,925
6,820
31.3.98
34,639
31.3.99
Annual
Quantum
Percentage
earning to
total
contribution
505
6060
21.25
(178 + 335)
513
6153
19.91
38,745
(198 + 335)
533
6396
16.51
12,616
47,255
(218 + 335)
553
6636
14.04
37,583
18,905
56,488
(237 + 335)
672
6864
12.15
31.3.00
40,778
25,729
66,507
(261 + 357)
618
7416
11.15
31.3.01
44,244
33,133
77,377
(287 + 438)
725
8700
11.24
31.3.02
48,005
42,336
90,341
(318 + 525)
843
10116
11.20
31.3.03
52,085
52,711
1,04,796
(348 + 743)
1091
13092
12.49
31.3.04
56,512
63,965
1,20,477
(382 + 836)
1218
14616
12.13
Amount as
on 16.11.95
(Balance
accretion in
FPF’71 A/c)
Monthly Pension
Amount as
admissible (past
service + current
service period)
INDEX
Statement showing contribution accretion in “Pension Fund” on salary ceiling
Payment vis-à-vis the Pensionary entitlement for member on superannuation (contd.)
Period
Reference
Contribution accretion with
interest @ 8.5% per annum
w.e.f. 18.11.95
Total
Contribution
accretion
Member Pension entitlement on
superannuation / retirement
Past
Service
period (FPF
’71 A/c upto
15.11.95)
Pensionable
Service period
EPS’95 (From
16.11.95
onwards)
EFPS – 1971
&
E.P.S. – 1995
31.3.05
61,316
76,178
1,37,494
(420 + 929)
31.3.06
66,528
86,175
1,52,703
31.3.07
72,183
97,022
31.3.08
78,319
31.3.09
31.3.2010
Monthly Pension
Amount as admissible
(past service + current
service period)
Annual
Quantum
Percentage
earning to
total
contribution
1349
16188
11.77
(462 + 1021)
1483
17796
11.65
1,69,205
(509 + 1114)
1623
19476
11.51
1,08,791
1,87,110
(560 + 1207)
1767
21204
11.33
84,976
1,21,560
2,06,536
(616 + 1300)
1916
22992
11.13
92,199
1,35,139
2,27,338
(677 + 1393)
2070
24840
10.93
Pension entitlement and the quantum of pension amount worked out above denotes initial
amount of member pension only on Superannuation. Same is likely to increase over the period
of drawl with pension relief to be allowed upon annual valuation of the pension fund. Four
annual valuation pension fund. Four annual valuations completed so far covering period upto
31.3.2000 have made available relief totaling 17.5% on the pension amount (1st year @ 4%, 2nd
year @ 5.5%, 3rd year @ 4% and 4th year @ 4%)
Statement showing contribution accretion in “Pension Fund” on total salary
INDEX
vis-à-vis the Pensionary entitlement for member on superannuation
Period
Reference
Amount
as on
15.11.95
(Balance
accretion
in FPF’71
A/c)
Pay
Contribution accretion
with interest
@ 8.5% per annum
w.e.f. 16.11.95
Total
Contribution
Member Pension entitlement on
superannuation / retirement
Past
Service
period
(FPF ’71
A/c upto
15.11.95)
Pensionable
Service
period
EPS’95
(From
16.11.95
onwards)
EFPS – 1971
&
E.P.S. – 1995
5000
28515
NIL
28515
(170 + 335)
Monthly Pension
Amount as
admissible (past
service + current
service period)
Annual
Quantum
Percentage
earning to
total
contribution
505
6060
21.25
“”
4/96
5000
29424
1478
30902
(178 + 335)
513
6153
19.91
“”
4/97
5500
31925
7337
39262
(198 + 335)
533
6396
16.29
“”
4/99
6000
34639
14216
48855
(218 + 335)
553
6636
13.58
“”
4/99
6500
37583
22201
59784
(237 + 371)
608
7296
12.20
“”
4/00
7000
40778
31386
72164
(261 + 500)
761
9132
12.65
“”
4/01
7500
44244
41873
86117
(287 + 643)
930
11160
12.95
“”
4/02
8000
48005
50772
101777
(318 + 800)
1118
13416
13.18
INDEX
Statement showing contribution accretion in “Pension Fund” on total salary
vis-à-vis the Pensionary entitlement for member on superannuation (contd.)
Period
Reference
Pay
Contribution accretion
with interest
@ 8.5% per annum
w.e.f. 16.11.95
Total
Contribution
Past
Service
period
(FPF ’71
A/c upto
15.11.95)
Pensionab
le Service
period
EPS’95
(From
16.11.95
onwards)
EFPS – 1971
&
E.P.S. – 1995
Member Pension entitlement on
superannuation / retirement
Monthly Pension
Amount as
admissible (past
service + current
service period)
Annual
Quantum
Percentage
earning to
total
contribution
“”
4/03
8500
52085
68074
120159
(348 + 971)
1391
15828
13.17
“”
4/04
9000
56512
83243
139755
(382 + 1157)
1539
18468
13.21
“”
4/05
9500
61316
100222
161538
(420 + 1357)
1777
21324
13.20
“”
4/06
10000
66528
114166
180694
(462 + 1571)
2033
24396
13.50
“”
4/07
10500
72183
129566
201749
(509 + 1800)
2309
27708
13.73
“”
4/08
11000
78319
146547
224866
(560 + 2043)
2603
31236
13.89
“”
4/09
11500
84976
165242
250218
(616 + 2300)
2916
34992
13.98
“”
4/10
12000
92199
185798
277997
(677 + 2571)
3248
38976
14.02
UNIQUE FEATURES OF THE EMPLOYEES’ PENSION SCHEME, 1995
UN-COMMON WITH OTHER ONGOING PENSION SCHEMES
i)
Pensionary coverage in combination with contributory provident fund
system. Normally Pension and contributory Provident fund arrangement are
mutually exclusive.
ii)
Contingency coverage on social insurance concept in combination with
annuity ingredients – Provision of capital return on option formula basis
besides pension payment and commutation.
iii)
Provision of children pension payment (two at a time) in addition to Widow /
Widower pension independently.
iv)
Provision of Orphan Pension at higher rate (combining widow & children
pension amount) upon cessation of pension payment to spouse on death /
remarriage.
v)
Continuance of Family Pension entitlement even after return of capital –
normally not expected in annuity / investment arrangement.
vi)
Pension entitlement on disablement / death without any eligibility
requirement.
vii)
Member’s death risk coverage and protection of Pension entitlement to
family during unemployment period and not contributing to the fund – a
much needed protection for unorganized and weaker section of work force
belonging to category of seasonal workers, casual labour and alike unstable
work group who neither work on regular basis nor can provide for
themselves and/or their family.
INDEX
Pension System as old age / Post service
retiral benefit in general, prevalent in India
1.
Social assistance Pension Scheme for elderly poor /
destitute by Central / State Government and Government
agencies.
2.
State financed pension for ex-legislators and freedom
fighters.
3.
Employer liability Pension as retiral benefit for Government
/ Semi-Government / Statutory body employees.
4.
Occupational type Pension Scheme, mostly employer
liability based, for specified categories / groups in Public /
Private Sector establishments.
5.
Employees’ Provident Fund linked Pension Scheme for
Industrial & Commercial Sector employees.
6.
Complementary private Pension / Annuity programme
operated by Insurance / Financial Institutions.
PENSION PAYMENT PROVISIONS
MONTHLY MEMBER’S PENSION
INDEX
It is payable on superannuation if the following
two conditions are satisfied :
The member should have completed 10 years of Pensionable
Service;
and
The member should have attained the age of 58 years.
Early pension may be availed at the option of the
member before attaining the age of 58 years, but
not less than 50 years of age, on ceasing
employment. In such an event the pension will be
reduced by 3% for every year of shortfall.
No pension payment is permissible
attaining the age of 50 years.
before
INDEX
DISABLEMENT PENSION
Eligibility
(i)
On permanent disablement
member during employment.
of
the
(ii)
No qualifying period is prescribed.
(iii)
Membership
with
one
month’s
contribution to the pension fund is
enough.
Entitlement
The pension is payable from the date
following the date of permanent total
disablement.
Quantum of Pension
Members entitlement as per pension
formula subject to minimum Rs. 250/per month.
“Superannuation”, in the relation to an employee, who
is the member of the Pension Scheme, means the
attainment, by the said employee, of the age of fifty-eight
years.
[Sec. 2(ii) of the Act]
“Pension”
means the pension payable under the
Employeees’ Pension Scheme and also includes the family
pension admissible and payable under the Employees’
Family Pension Scheme, 1971 immediately preceding the
commencement of the Employees’ Pension Scheme, 1995
with effect from the 16th November, 1995.
[Para 2(viii) of the scheme]
“Permanent
total
disablement”
means such
disablement of permanent nature as incapacitates an
employee for all work which he/she was capable of
performing at the time of disablement, regardless whether
such disablement is sustained in the course of employment
or otherwise.
[Para 2(xvi) of the scheme]
Past Service: [2(1)(xii)]
INDEX
“Past service” means the period of service rendered by an
existing member from the date of joining Employees’ Family
Pension Fund till the 15th November, 1995.
Pensionable Service: [2(1)(xv)]
“Pensionable service” means the service rendered by the
member for which contributions have been [received or are
receivable].
Eligible Service: [9(a) & (b)]
In the case of “new entrant” the “actual service” shall be
treated as eligible service.
The total actual service shall be
rounded off to the nearest year. The fraction of service for six
months or more shall be treated as one year and the service less
than six months shall be ignored.
In the case of “existing member” the aggregate of actual
service and the ‘past service’ shall be treated as eligible service.
THE EMPLOYEES’ PENSION SCHEME, 1995
PENSION COMPUTATION PROVISION
I.
INDEX
Members Pension on Superannuation / Retirement [Para 12]
(a) For members entitling between 1.4.93 and 15.11.95
Pension payable as per table appended under para 12(3)(b),
Subject to minimum pension amount of Rs. 500/600 per month in
accordance with age group of above or below 53 yrs. On 16.11.1995 for 24 years
membership under the ceased Family Pension Scheme, 1971. If the membership
period is lesser, proportionately lesser, pension but not less than Rs. 265 per
month.
(b) For members retiring after 16.11.95
(1) For past service period upto 15.11.95 : Pension payable as per table under
para 12(3)(b) enhanced by factor in Table – B corresponding to the period
between 16.11.95 and the date of attainment of age 58 years; plus
(2) For current service period from 16.11.95 onwards : Pension calculated as
per formula under para 12(2). Or the pension amount of Rs. 335/438/635
per month which is higher;
Subject to minimum aggregate pension of Rs. 500/600/800 per
month as per age group of retirees on 16.11.95, being 53 years / 48-53
years and below 48 years respectively.
II.
(1) Members Pensions on Disablement [Para 15]
Pension Payable as per para – 12 subject to minimum of Rs. 250 p.m.
THE EMPLOYEES’ PENSION SCHEME, 1995
II.
Computation of Family Pension entitlement
INDEX
Widow / Widower pension : [Para 16(2)]
(i)
Upon death of the member before attaining Superannuation age / vesting
of pension earlier
Members pension entitlement if the member had retired on the said date; or
Quantum of Pension payable on salary on the day of death as per Table ‘C’; or
Minimum widow pension prescribed i.e. Rs. 450 pm whichever is the highest.
(ii) Death after superannuation age / vesting of pension :
50% equivalent of members pension subject to minimum pension of Rs.
450 p.m.
(iii) Children Pension : [Para 16(3)]
Payable in addition to widow pension @ 25% of widow pension subject to
Rs. 150 minimum per child per month.
(iv) Orphan Pension : [Para 16(4)]
Payable @ 75% of widow pension subject to Rs. 250 minimum per month
per child.
(v) Nominee / Dependent Parents pension : [Para 16(5)]
Shall be entitled to receive pension equivalent to the quantum payable to
the widow
INDEX
THE EMPLOYEES’ PENSION SCHEME, 1995
III. Benefit on exit without pension eligibility [Para – 14]
(1)
Benefit attaining Superannuation age of 58 years
Option for obtaining scheme certificate for future addition; or
Availing withdrawal benefit as laid down in Table – D for
pensionable service period from 16.11.95 onwards and Table – A
multiplied by Table – B factor for the period from 16.11.95 to the
date of exit for the past service period upto 15.11.95.
(2)
Upon attaining the age of 58 years
Refund benefit as admissible in (1) above.
THE EMPLOYEES’ PENSION SCHEME, 1995
INDEX
Formula for calculation of Pension for retirees with combination of Past
Service & Pensionable Service [Para 12]
I.
Past service Pension payable as per table below para 12(3)(b) multiplied by
factory in table ‘B’ for the period between 16.11.95 and the date of retirement.
(Actual Amount)
-Plus-
II.
(a)
(b)
(c)
Formula pension for the pensionable service period from 16.11.95 onwards
subject to minimum quantum prescribed in para 12(3), 12(4) and 12(5) as per
age group of the member as on 15.11.95, viz
Amount for Pensionable Total aggregate
Service period
Pension Amount
(A)
(B)
53 years & above
Rs. 335/Rs. 500/48-53 years
Rs. 438/Rs. 600/below 48 years
Rs. 635/Rs. 800/-
Reduced Pension
Amount
(C)
Rs. 265/Rs. 325/Rs. 450/-
If the aggregate Pension falls short of minimum pension of Rs. 500/600/800 as the
case may be, the pension quantum shall be raised to minimum pension amount
prescribed in II (B) above and subjected to 24 years eligible services requirement, if
service falls short of 24 years, the pension quantum to be reduced proportionately but
not lesser than reduced minimum quantum in II (C) above.
INDEX
THE PAST SERVICE BENEFIT PAYABLE AS ON 16.11.1995
Means of
Past Service
1.
2.
Salary upto Rs. 2500/Salary of Rs. 2500 & above
Upto 11 Yrs.
(In Rs.)
Between
11 – 15 Yrs.
Between
15 – 20 Yrs.
Exceeding
+ 20 Yrs.
Rs. 80.00
Rs. 85.00
Rs. 95.00
Rs. 105.00
Rs. 120.00
Rs. 135.00
Rs. 150.00
Rs. 170.00
PAST PENSION IN THE YEAR OF EXIT
400
297
253
PAST
208
PAST 250
190
SERVICE
250
237
150
150
100
100
50
50
0
0
1998
1999
2000
2001
YEAR OF EXIT
2002
2003
2004
2005
198
178
YEARS
YEARS
287
218
24 200
157
1997
281
SERVICE
173
1996
318
300
230
420
343
350
279
300
200
382
287
350
24
400
371
1996
1997
1998
1999
2000
2001
2002
YEAR OF EXIT
2003
2004
2005
INDEX
PENSIONABLE SALARY
Pensionable salary is the average salary of the member drawn
during the last 12 months.
PENSIONABLE SERVICE
Pensionable service is the service of the member for which
contribution for the pension fund is made.
PENSION CALCULATION FORMULA
Pensionable Salary x Pensionable Service
Monthly Members Pension =
70
Pension is also payable for membership period under ceased Family
Pension Scheme, 1971 as past Service benefit based on factor formula
of table & Schedule ‘B’.
INDEX
Employees Pension Scheme, 1995
Computation of Pension – relevant operational details
Part – I
(a)
Name of the member
:
(b)
Date of birth
:
(c)
Date of joining FPF
membership
(d)
Date of exit
:
(e)
Age of exit
(f)
X
Y
Z
16.2.49
15.6.43
30.11.37
2.3.85
1.7.78
1.8.71
30.9.2000
31.5.98
30.11.95
:
51-6-14
(52 yrs.)
55-11-15
(56 yrs.)
58-0-0
(58 yrs.)
Age of 15.11.95
:
46-9-0
(47 yrs.)
52-5-0
(52 yrs.)
58-0-0
(58 yrs.)
(g)
Pay as on 15.11.95
:
Rs. 2450
Rs. 3500
Rs. 6500
(h)
Past service period
:
10-8-13
(11 yrs.)
17-4-17
(17 yrs.)
24-3-14
(24 yrs.)
(i)
Pensionable Service Period
:
4-10-13
(5 yrs.)
2-6-14
(3 yrs.)
0-0-15
(NIL)
(j)
Pensionable salary
:
Rs. 3750
Rs. 5000
Rs. 6500
INDEX
Computation of Pension Calculation details
Pension Computation for ‘X’ [Para 12(3)]
(a)
(b)
Past service pension for 11 yrs. – multiplied
by Table ‘B’ factor for less than 5 yrs.
=
Rs. 80 x 1.536
Rs. 123.00
Pensionable Service – 5 yrs.
Pension Payable
higher of formula pension or
Rs. 635 …..
[Age below 48 yrs. on 15.11.95]
=
Rs. 3750 x 5/70
Rs. 268.00
Pension Payable as above: (a) + (b)
=
Rs. 123.00
Rs. 635.00
TOTAL
Rs. 738.00
Minimum pension prescribed
Rs. 800.00
On attaining age 58 yrs. with 24 yrs. Service membership.
So pension entitlement be raised to Rs. 800 p.m. to be reduced
proportionately for total eligible service being less than 24 yrs. as under:Rs. 800 x 16/24
=
Less: Deduction for early pension: Discount @ 3%
for shortfall for 58-52 yrs., i.e., 6 years x 3% per year of short fall
(Deduction on reduced balance method)
Balance
Rs. 533.00
Rs. 89.00
Rs. 444.00
Balance pension amount of Rs. 444 is less than minimum reduced pension amount prescribed
at Rs. 450 p.m. So the amount of pension payable shall be Rs. 450 per month for life from date
following the date of retirement, i.e., 1.10.2000.
PENSION COMPUTATION FOR ‘Y’
INDEX
I)
Age at exit 56 years
[Para 12(4)]
(a)
Past Service Pension for 17 years as per table ‘B’ factor for
Less than 3 years
Rs. 135 x 1.269
=
Rs. 171.00
(b)
Pensionable Service for 3 years as per
formula subject to minimum Rs. 438
[Age between 48-53 years on 15.11.95]
Rs. 5000 x 3/70
(Rs. 214)
Rs. 438.00
Total Pension payable subject to minimum of Rs. 600
(c)
Discount for early pension payment by 2 years
At age 56 years
Balance pension payable per month
(not less than Rs. 325 p.m.)
Rs. 609.00
Rs. 36.00
Rs. 573.00
PENSION COMPUTATION FOR ‘Z’
-
(a)
(b)
Age at exit – 58 years
Age on 15.11.95 – 58 years
Past Service Pension for 24 years –
multiplied by
Table ‘B’ factory for less than one years
[Para 12(5)]
Rs. 170 x 1.049
= Rs. 178.00
Pensionable Service – 15 days
Pension payable – higher of formula pension or
Rs. 335
=
[Age group above 53 years as on 15.11.95]
TOTAL
INDEX
=
Rs. 335.00
Rs. 513.00
Total pension entitlement being higher than minimum
pension prescribed Rs. 500 p.m. The actual quantum worked out
shall be made available. So also eligible service being 58 years and
eligible service being above 24 years. No adjustment otherwise is
necessary.
Pension Calculation – Members Pension
on Retirement/Superannuation
I.
Pension Computation for ‘Mr. X’
(a) Calculation on pay ceiling contribution:
(Ref. Para 12(3) of EPS-95)
(i) Past service pension for above 20 yrs. slab multiplied by
table ‘B’ factor for less than 14 years (difference between
16.11.95 as the date of exit)
Rs. 170 x 2.826 = Rs. 480.42
(ii) Pensionable service period pension:
13yrs. x 6500
= Rs.1207.14
70
Total
Rs. 1,687.56
or
Rs. 1688 PM
Pension Calculation – Members pension on
Retirement/Superannuation (contd.)
(I) (b) Calculation on actual pay basis:
(Ref. Para 12(3) read with para 11(3) of EPS-95)
(i)
(ii)
Past service pension same as above:Rs. 170 x 2.826 =Rs. 480.42
Pensionable service period pension : Rs. 10,000x13 = Rs.1857.14
70
Total
Rs.2337.56
or Rs. 2338 PM
N.B. Pension is becoming payable on attaining the age of 58 yrs.
Hence actual amount is payable – no deduction
Pension Calculation – Members pension on
Retirement/Superannuation (contd.)
II. Pension Computation for “Mr. Y”:
a)
Calculate in pay ceilling contributions:
(Ref. Para 12(3) of EPS-95)
(i) Past service period pension >11 yrs. slab multiplied by table ‘B’
factor for less than 18 yrs. (difference between 16.11.95 as the date of
exit)
Rs. 105x3.845
= Rs. 403.72
(ii) Pensionable service period pension for 17 yrs.
Rs. 6500x17
70
= Rs. 1578.57
Total 1982.29
Less: Discount @ 4% for 4 years short of age less than
- 317.16
58 years at exit.
Balance Payable
= Rs. 1665.13
or Rs.1665 PM
Pension Calculation – Members pension on
Retirement/Superannuation (contd.)
(ii) (b) Calculation on actual pay basis:
(Ref. Para 12(3) read with para 11(3) of EPS-95)
(i)
(ii)
Past service pension same as above:Rs. 105 x 3.845 =Rs. 403.72
Pensionable service period pension : Rs. 12,500x17 = Rs.3035.71
70
Total
Rs.3439.43
Less: Discount @ 4% for 4 years short of age less
than 58 years at exit
- 550.30
Balance Payable
= Rs. 2889.13
or Rs.2889 PM
Pension Calculation – Members pension on
Retirement/Superannuation (contd.)
III. Pension Computation for “Mr. Z”:
a)
Pension calculation on pay ceiling contribution:
(i) Past service period pension 3 yrs. - upto 11 yrs.
slab amount multiplied by less than 34 yrs. factor
given in Table B.
Rs. 85x13.173 = Rs. 1190.70
(ii) Pensionable service period pension for 34 yrs.
Rs. 6500x34+2
= Rs. 3342.85
70
Total Rs. 4462.55
Less: Discount @ 4% for 1 year short of age than
178.50
58 years at exit.
Balance Payable= Rs. 4284.05
or
Rs. 4284/=
Pension Calculation – Members pension on
Retirement/Superannuation (contd.)
III. (b) Calculation on Actual Pay contribution:
(i) Past service period pension 3 yrs. ± upto 11 yrs. Slab amount multiplied
by less than 34 yrs. Factor given in table B.
Rs.1190.70
(ii) Pensionable service period pension for 34 yrs.
Rs. 21000x34+2
70
Total
Less: Discount @ 4% for 4 years short of age less
than 58 years at exit
Balance Payable
Rs. 10800.00
Rs. 11919.70
- 476.76
= Rs. 11442.94
or Rs.11443 PM
Pensionary Benefit admissibility to Casual / Contractor’s employees on notional basis through
relaxed provision allowed for such category of workers under the Employees’ Pension Scheme ‘95
Year
No. of Days
actually worked
Entitlement reckoning
on notional basis
Actual Wage
on which
contribution paid
Wage taken for Pension
Calculation purpose on
notional basis
1st
100 days
One Year (365 days)
Rs. 10,000
Rs. 36,000
2nd
120 days
– do –
Rs. 12,000
Rs. 36,000
3rd
125 days
– do –
Rs. 12,500
Rs. 36,000
4th
130 days
– do –
Rs. 13,000
Rs. 36,000
5th
80 days
– do –
Rs. 8,000
Rs. 36,000
6th
110 days
– do –
Rs. 11,000
Rs. 36,000
7th
115 days
– do –
Rs. 11,500
Rs. 36,000
8th
150 days
– do –
Rs. 15,000
Rs. 36,000
9th
160 days
– do –
Rs. 16,000
Rs. 36,000
10th
140 days
– do –
Rs. 14,000
Rs. 36,000
TOTAL
1230 days
3650
Rs. 1,23,000
Rs. 3,60,000
(Assumed daily wage taken @ Rs. 100 per day with no periodical escalation for calculation purpose)
Members’ pension entitlement only worked out
Rs. 1166.67 x 3.37 = Rs. 56.17
(on Actual basis)
70
Pensionable Salary – Rs. 14,000 ÷ 12 = Rs. 1166.67
Pensionable Service – 1230 days = 3.37 year
(on Notional basis)
1. Pensionable service taken……. 10 years.
2. Pensionable salary worked out as average of last 12 months @ Rs. 3000 p.m.
3. Formula pension under para 12 of EPS – 95 apply:
Pensionable Service x Pensionable Salary
Rs. 3,000 x 10
to be divided with factor 70)
= Rs. 428.57
70
Minimum reduced pension Rs. 450
INDEX
MONTHLY WIDOW PENSION
The monthly widow pension is payable in the
following contingencies:
(i)
(ii)
Member’s death while in service.
Member’s death during non-employment.
(A member who has ceased to contribute to the
Fund but retains his membership)
(iii) On pensioner’s death after superannuation.
No eligibility period –
contribution is adequate.
Membership
with
one
EXAMPLE
INDEX
WIDOW PENSION
Death of member during service
Equal to member’s pension assuming
that the member retired on the date
of death or as per Table ‘C’ or Rs. 450
whichever is more
Pensionable Salary
Rs. 3000
Period of service at the
time of death
20 years
Widow Pension
Pensionable Salary x Pensionable Service +2
70
Rs. 3000 x 22
= Rs. 943
70
(Minimum widow pension in Rs. 450 p.m.)
Amount payable as per Table ‘C’ = Rs. 1281 per month
So, Pension of Rs. 1281 per month will be payable
INDEX
EXAMPLE
DEATH AFTER SUPERANNUATION
Assuming member’s pension
Rs. 1600 p.m.
Widow Pension
(50% of member’s pension)
Rs. 800 p.m.
(Children Pension will be paid in addition to
Widow Pension maximum upto two children
at a time)
INDEX
MONTHLY CHILDREN PENSION
Children pension is payable in every case of
widow pension.
It is payable to maximum of two children at a
time, till they attain the age of 25 years.
The quantum of children pension is 25% of
widow pension per child.
The minimum
monthly children pension will be Rs. 150 per
month.
In cases where the member is having more than two
children, the eligibility for pension will run from the eldest
to the younger child, in that order.
MONTHLY ORPHAN PENSION
INDEX
It is payable when neither member nor his / her
widow / widower is alive or Widow /Widower
ceases to receive pension on remarriage.
It is payable upto two surviving children till
they attain the age of 25 years.
The amount of monthly orphan pension will be
75% of monthly widow pension for each
orphan.
The orphan pension will be paid only to two
orphans at a time and it will run from the eldest
to the youngest, in that order. The minimum
orphan pension will be Rs. 250.
EMPLOYEES PROVIDENT FUND ORGANIZATION
DETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UP
AS ON 30.9.1998
INDEX
SI
Region
Upto 1000
1001-2500
2501-5000
Above 5000
Total
1
2
3
4
5
6
7
1
AP
4710
5903
10609
370
21592
2
BR
2728
3354
1397
224
7703
3
DL
583
2855
2232
0
5670
4
GJ
451
4523
4755
0
9729
5
HP
76
592
516
0
1184
6
HR
258
2961
1797
48
5064
7
KN
12316
8375
9677
131
30499
8
KR
10587
6374
5884
1672
24517
9
MH
2775
13518
10289
158
26840
10
MP
1651
5331
4261
377
11620
11
NE
288
518
548
84
1438
12
OR
773
1491
706
22
2992
13
PB
673
2544
1388
111
4716
14
RJ
703
1977
2154
45
4879
15
TN
10550
13398
15648
148
39744
16
UP
3218
4726
9061
22
17027
17
WB
1552
3762
2422
110
7846
TOTAL
53892
82302
83344
3522
223060
% to Total
(24%)
(37%)
(37%)
(2%)
DETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UP
As on 31.12.99
INDEX
SI
Region
Upto 1000
1001-2500
2501-5000
Above 5000
Total
1
2
3
4
5
6
7
1
AP
10820
10781
20671
1591
43863
2
BR
5867
6883
3645
264
16659
3
DL
627
3241
3495
0
7363
4
GJ
2012
8913
8365
3
19293
5
HP
133
842
856
0
1831
6
HR
335
4006
2985
63
7389
7
KN
13679
10683
12687
639
37688
8
KR
17547
14612
8848
569
41576
9
MH
5001
24951
19048
902
49902
10
MP
3656
8674
7107
1608
21045
11
NE
699
1476
1918
349
4442
12
OR
3012
2111
1600
934
7657
13
PB
1527
3229
3217
32
8005
14
RJ
1987
4821
5918
192
12918
15
TN
15141
20393
28507
241
64282
16
UP
4117
8205
10850
355
23527
17
WB
6949
19189
14386
468
40992
93109
153010
154103
8210
408432
22.80
37.46
37.73
2.01
TOTAL
Percentage
of total
Pensioners
DETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UP
As on 31.12.2000
INDEX
SI
Region
Upto 1000
1001-2500
2501-5000
Above 5000
Total
1
2
3
4
5
6
7
1
AP
15971
15583
25795
1983
59332
2
BR
9290
11038
8421
264
29013
3
DL
877
4261
5493
0
10631
4
GJ
3189
12251
11883
3
27326
5
HP
164
1020
1171
11
2366
6
HR
357
4861
4547
72
9837
7
KN
16043
13464
19594
870
49971
8
KR
21626
17773
11788
698
51885
9
MH
7114
35522
27499
902
71037
10
MP
5311
10475
9369
1574
26729
11
NE
954
2100
2606
407
6067
12
OR
4071
3603
3032
1465
12171
13
PB
2538
4695
4693
52
11978
14
RJ
2852
6166
7903
523
17444
15
TN
19296
26506
35726
366
81894
16
UP
5541
13828
14799
723
34891
17
WB
6097
18587
16009
501
41194
121291
201733
210328
10414
543766
22.31
37.10
38.68
1.92
TOTAL
Percentage
of total
Pensioners
Salary-wise distribution of Pension Fund Membership
INDEX
as on 31.3.1998
(Sample quantum 3306038)
Salary Level
Number of Members
Percentage
Cumulative %
Belonging to
Salary slabs
Cumulative
Upto 500
203274
203279
6.15
6.15
500-1000
877162
1080441
26.53
32.68
1000-1500
722945
1803386
21.87
54.55
1500-2000
212668
2016054
6.43
60.98
2000-2500
381111
2397165
11.53
72.51
2500-3000
139435
2536600
4.22
76.73
3000-3500
104858
2641458
3.17
79.90
3500-4000
75411
2716869
2.28
82.18
4000-4500
56835
2773704
1.72
83.90
Above 5000
532334
3306038
16.10
100.00
BACKGROUND DETAILS IN THE DEVELOPMENT
OF THE EMPLOYEES PENSION SCHEME, 1995
INDEX
1.
Opinion Survey of Employee’s Provident Fund subscribers by National Institute of
Public Finance & Policy, New Delhi – Combination of lump sum payment with
monthly pensionary support recommended.
[1984-85]
2.
Technical feasibility study by a team of three actuaries headed by the then
Chairman of LIC conducted – Modest pension scheme with contribution rate
between 9-12% could be possible.
[1988-89]
3.
Tripartite sub-committee of the Central Board of Trustees availing services of an
expert professional actuary formulates draft pension scheme – CBT recommends
pension scheme to the Central Government.
[1991-92]
4.
Central Government Accepts CBT’s recommendations – decides to amend the EPF
& MP Act, ’52 empowering Government to frame pension scheme for EPF
subscribers – Introducing amendment bill in Rajya Sabha.
[Mar. 1993]
5.
Promulgates presidential Employees’ Provident Fund & Miscellaneous Provision
(Amendment) ordinance, in October 1995 – Central Government notifies the
Employees Pension Scheme on 16.11.95.
6.
Parliament enacts the Employees’ Provident Fund & Miscellaneous Provision
(Amendment) Act, 1996 on 03.08.1996 – President asserts the Act and notified on
16.08.1996.
TABLE A
(See Paragraph 14)
(WITHDRAWAL BENEFIT)
NO. OF FULL
YEARS’ CONTRI–
BUTION PAID
PROPORTION OF PAY
PAYABLE AT CESSATION OF
MEMBERSHIP
NO. OF FULL
YEARS’ CONTRI–
BUTION PAID
PROPORTION OF PAY
PAYABLE AT CESSATION OF
MEMBERSHIP
(1)
(2)
(1)
(2)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
0.20
0.41
0.62
0.84
1.06
1.29
1.51
1.75
1.98
2.23
2.47
2.72
2.98
3.24
3.51
3.78
4.05
4.34
4.62
4.92
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
5.21
5.52
5.83
6.14
6.46
6.79
7.12
7.46
7.81
8.16
8.52
8.89
9.26
9.64
10.03
10.43
10.83
11.24
11.66
12.08
TABLE B (See Paragraph 12 and 14)
(FACTOR FOR COMPUTATION OF PAST SERVICE BENEFIT [UNDER THE CEASED]
FAMILY PENSION SCHEME FOR EXISTING MEMBERS ON EXIT FROM THE EMPLOYMENT)
(1)
(2)
(1)
(2)
YEARS
FACTOR
YEARS
FACTOR
Less than 1
Less than 2
Less than 3
Less than 4
Less than 5
Less than 6
Less than 7
Less than 8
Less than 9
Less than 10
Less than 11
Less than 12
Less than 13
Less than 14
Less than 15
Less than 16
Less than 17
1.039
1.122
1.212
1.309
1.413
1.526
1.649
1.781
1.923
2.077
2.243
2.423
2.616
2.826
3.052
3.296
3.560
Less than 18
Less than 19
Less than 20
Less than 21
Less than 22
Less than 23
Less than 24
Less than 25
Less than 26
Less than 27
Less than 28
Less than 29
Less than 30
Less than 31
Less than 32
Less than 33
Less than 34
3.845
4.152
4.485
4.843
5.231
5.649
6.101
6.589
7.117
7.686
8.301
8.965
9.682
10.457
11.294
12.197
13.173
(As amended vide Govt. of India notification dt. 10.6.2008)
TABLE C (See Paragraph 16)
(EQUIVALENT WIDOW PENSION)
Salary at day of death not more than
Equivalent widow pension
(1)
(2)
(Rupees)
Upto 300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
1050
1100
1150
1200
1250
1300
1350
1400
1450
1500
(Rupees)
250
327
343
359
375
391
408
425
442
459
476
493
510
527
544
561
578
595
612
629
646
664
682
700
718
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
1550
1600
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
2150
2200
2250
2300
2350
2400
2450
2500
2550
2600
2650
2700
2750
2800
2850
2900
2950
3000
736
754
772
797
808
826
844
862
880
898
916
935
954
973
992
1011
1030
1049
1068
1087
1106
1125
1144
1163
1182
1201
1221
1241
1261
1281
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
3050
3100
3150
3200
3250
3300
3350
3400
3450
3500
3550
3600
3650
3700
3750
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
4300
4350
4400
4450
1301
1321
1341
1361
1381
1401
1421
1441
1461
1481
1501
1521
1541
1561
1581
1601
1621
1641
1661
1681
1701
1721
1741
1751
1761
1771
1781
1791
1801
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
4500
4550
4600
4650
4700
4750
4800
4850
4900
4950
5000
5050
5100
5150
5200
5250
5300
5350
5400
5450
5500
5550
5600
5650
5700
5750
5800
5850
5900
1811
1821
1831
1841
1851
1861
1871
1881
1891
1896
1901
1906
1911
1916
1921
1926
1931
1936
1941
1946
1951
1956
1961
1966
1971
1976
1981
1986
1991
(Cont... .)
Salary at day of death
not more than (Rs.)
Equivalent widow pension
(Rs.)
5950
6000
6050
6100
6150
6200
6250
6300
6350
6400
6450
6500
1996
2001
2006
2011
2016
2021
2026
2031
2036
2041
2046
2051
TABLE D
(RETURN OF CONTRIBUTION ON EXIT FROM THE EMPLOYMENT)
(See Paragraph 14)
YEAR OF SERVICE
PROPORTION OF WAGES AT EXIT
1
2
3
4
5
6
7
8
9
1.02
1.99
2.98
3.99
5.02
6.07
7.13
8.22
9.33
(As amended vide Govt. of India notification dt. 10.6.2008)
TABLE E
(TRANSFER OF CONTRIBUTION FROM EMPLOYEES’ PENSION SCHEME,
1995 TO EXEMPTED OR OTHER PENSION FUND OR VICE-VERSA)
(See Paragraph 39-B)
YEAR OF SERVICE
PROPORTION OF WAGES AT EXIT
1
2
3
4
5
6
7
8
9
0.978
1.979
3.003
4.051
5.124
6.221
7.345
8.494
9.671
COMPARATIVE BENEFIT ADMISSIBILITY POSITION IN RESPECT OF GOVT.
EMPLOYEES’ PENSION SCHEME AND THE EMPLOYEES’ PENSION SCHEME, 1995
GOVT. EMPLOYEES’ PENSION SCHEME [CCS
(PENSION) RULES, 1972]
EMPLOYEES’ PENSION SCHEME, 1995
1. APPLICABILITY:
Applicable to all regular employees.
Contract / casual employees not covered.
Applicable for all category of employees
including contract / casual employees.
2. ADMISSIBILITY:
Pension admissible on retirement (including
early retirement on voluntary basis) with
minimum 20 years pensionable service.
(10 yrs. Service on permanent absorption
transfer)
Waiting for attaining Superannuation age
not required.
Pension admissible on superannuation /
retirement with minimum 10 years
pensionable service.
Payable on attaining superannuation age
– 58 years.
Early
drawal
at
discounted
rate
permissible between 50-58 years of age.
No pension payment below 50 years of
age.
3. PENSION ENTITLEMENT
(I) Members entitlement
Pension and Gratuity plus partial benefit
(I) Members entitlement
of C.P.F. (i.e., balance 3.67% of the
Pension and Gratuity on retirement of the
Employer’s contribution).
employee.
(II) Family Pension Benefit
(II) Family Pension Benefit
(i) Death while in service:
(a) Death while in service:
Family Pension, Gratuity plus partial
Family Pension and Gratuity upon death of
benefit of C.P.F. (i.e., balance 3.67% of the
the member while in service.
Employer’s contribution)
(b)
Death as a pensioner:
(ii)
Family Pension is paid to the Family
members.
(iii)
(c) Death away from service:
No benefit of Family Pension is available
in such cases.
N.B For members unmarried / leaving no
eligible family members, provision exists
in Employees’ Pension Scheme 1995 for
pension payment to “Nominee” for life.
Quantum of Nominee Pension shall be
equivalent to “Spouse Pension”.
Death away from service:
Pension payable to the Family members.
No such provision exists in the Govt.’s
Employees Pension Scheme.
4. NO. OF BENEFICIARIES IN CASE OF
DEATH:
Only one member of the family is paid
Family Pension at a time, as under:
Death as a pensioner:
Pension payable to the Family members.
Pension to widow / widower till death or
re-marriage. Thereafter to eldest child
below the age of 25 years (one at a time).
For daughters 25 years or till marriage.
Disabled children will also stop receiving
Family Pension on attaining the age of 25
years.
Three members of the family are paid
Family Pension at a time, as under:To spouse and two children at a time till
25 years of age. (For handicapped child
no age bar – Pension for life).
Upon death / re-marriage of spouse,
children pension converted as Orphan
Pension at enhanced rate.
Daughters are also eligible to get Family
Pension uniformly till the age of 25 years
irrespective of their being / getting
married.
Disabled child will get pension throughout
his life irrespective of the number of
children in the family.
QUANTUM OF BENEFITS:
MEMBER PENSION
MEMBER PENSION
50% OF Pay subject to a minimum of Rs.
1250 on completion of 33 years of service.
No weightage of service beyond 33 years.
FAMILY PENSION
50% of Pay subject to a minimum of Rs.
500 / 600 / 800 depending on age as on
16.11.1995.
Proportionately higher pension beyond 33
years of Service – could go upto 60% of
pay.
FAMILY PENSION
(i) Spouse –
30% of pay payable to one member of
family at a time uniform rate.
(a) Equal to member’s entitlement or higher
amount as per table C in case of
member’s death before superannuation /
retirement.
(b) For death after retirement, half the
member’s pension.
(ii) Two Children – @ 25% of the monthly
pension payable to spouse will be paid
each of the two children separately (i.e.
25+ 25 = 50%) = 37.5% in total.
6. BENEFITS ADMISSIBLE ON
LEAVING SERVICE OTHERWISE
THAN RETIREMENT / DEATH :
Only Gratuity is payable.
No pensionary benefits admissible.
Gratuity plus Pension if the pensionable
service rendered is 10 years or more.
For service less than 10 years the member is
eligible to a lump sum Withdrawal Benefit
with reference to his last pay drawn and the
years of service rendered or taking a
Scheme Certificate which shall entitle for
clubbing subsequent period of service, if
any, and providing death risk coverage for
Family Pension.
7.
COMMUTATION OF PENSION
Admissible up 40% of the basic
pension.
8.
RETURN OF CAPITAL
No such provision exists.
Capital return permissible on option
formula basis upon cessation of members
pension payment. Despite capital return,
family pension benefit shall continue to be
available.
9.
ADJUSTMENT WITH COST OF
LIVING INDEX
Dearness Relief based on the
pension amount is added to the
pension on increase in the cost
of living index on declaration
made by Government half yearly.
Based on annual valuation result, pension
relief will be available as may be
announced.
Admissible upto 1/3rd of the basic pension.
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSION
SCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971
I.
MEMBER PENSION:
(1) No provision for pension payment
member: On Superannuation / retirement or
Invalidation
II. FAMILY PENSION:
EMPLOYEES’ PENSION SCHEME, 1995
(I) Pension is payable to a member : On Superannuation / retirement on
to
attaining 58/50 years of age with 11 years
contributory service or more [Para 12].
On invalidation while in service – no
eligibility requirement – membership with
one contribution is enough [Para 15].
(2) Family Pension payable only in the event of
death of the member while in reckonable
service.
No pension entitlement if death occurs
otherwise [Para – 28].
(3) Pension entitlement on completion of
minimum three months membership with
contribution payment there against [Para
28].
(4) Pension entitlement to one person at a time
either widow or in the event of death or
remarriage of widow / widower, eldest child
below the age of 25 years [Para 29].
(5) No provision for enhanced pension payment
to orphan children upon death of the widow
/ widower or remarriage [Para 28].
Family Pension is payable in the event of
death of the member under any situation;
i.e. (i) whether death occurred while in
service; or (ii) away from employment;
or (iii) after retirement as a pensioner.
[Para 16(1) & 16(2)(a)]
No eligibility requirement for Family
Pension.
Membership
with
one
contribution is adequate [Para 16(1)].
Pension entitlement to three persons at a
time, payable to widow / widower and two
children below the age of 25 years
simultaneously [Para 16].
Pension is payable at higher rate to
orphan children upon cessation of widow
pension payment on death / marriage
[Para 16(4)(a)].
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSION
SCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971
EMPLOYEES’ PENSION SCHEME, 1995
(6) Only withdrawal benefit was permissible Benefit of pension to widow and two
if the member died after leaving the job
children below the age of 25 years
or otherwise not in reckonable service.
admissible simultaneously in such
cases [Para 16].
III. NOMINEE PENSION:
(7) No provision for pensionary entitlement Pension is payable to “Nominee” in
to members unmarried or having no
respect of members unmarried or
eligible family members to receive
having no eligible family members to
pension [Para 29].
receive pension [Para 16(5)(a)].
(8) No provision permitting payment of Provision of pension payment to
pension to persons other than family
nominee exists for members who are
members. A loss to members unmarried
unmarried or otherwise having no
or otherwise having no family [Para 29].
family members to receive pension.
Pension entitlement equivalent to
widow pension to nominee in such
cases [Para 16(5(a)].
Commutation of pension permissible
upto 1/3rd of the pension amount. 100
(9) No provision allowing commutation of
times of pension amount commuted
pension.
will be admissible as lump-sum
payment [Para 12(A)]
V. COMMUTATION PENSION:
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSION
SCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971
VI.
EMPLOYEES’ PENSION SCHEME, 1995
CAPITAL RETURN:
(10) No provision permitting capital Capital return is permissible on
return after cessation of pension
option formula basis after death of
payment.
the member and / or cessation of
pension payment to member [Para
13].
VI.
CONTINUENCE OF MEMBERSHIP:
(11) No scope for retaining the Membership can be retained after
membership on leaving the job and
exit
by
obtaining
Scheme
withdrawing Provident Fund and to
Certificate and continue Family
continue family protection benefit
Protection benefit [Para 14 & Para
[Para 6].
12(8)].
VII. WITHDRAWAL BENEFIT:
(12) Permissible on exit from job or Permissible on exit before 10
cessation of membership on
years service and on grant of
attaining 60 years of age [Para 32].
exemption to the Establishment
[Para 14 & 39].
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSION
SCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971
EMPLOYEES’ PENSION SCHEME, 1995
VIII.
BENEFIT
AVAILABILITY
UNORGANIZED SECTION:
TO Special provisions made to ensure benefit
delivery
(13)
Entitlement / eligibility criteria of (i)
“minimum 3 months membership” and
“death while in reckonable service”
mostly eluded the Pension benefit
admissibility to casual workers,
seasonal
workers
and
workers
engaged by or through contractors (ii)
who generally work for short duration.
(iii)
(iv)
Employees engaged seasonally in
any establishment, the period of
“actual service” in any year
notwithstanding that such service is
less than a year, shall be treated as
full year [Para 9(a)].
Pensionable salary will be worked
out “Notionally” for full month in the
event of drawal of salary for a part of
the month [Para 11(2)].
Pension entitlement to Family
following death of the member
irrespective of death occurring while
in service, after date of exit from
employment or after Superannuation
and receiving pension [Para 16(1)].
Pensionary
benefits
shall
be
extended to the members without
co-relating compliance by the
employer of the establishment [Para
16A].
EMPLOYEES’ PENSION SCHEME, 1995
SETTLEMENT / DISBURSEMENT PROCEDURE
All types of pension claims – viz – members pension on
retirement / superannuation or disablement and family
pension upon death of the member – to be made and filed
with EPF authorities in Form-10 D Induplicate. If pension
disbursement is sought from any place outside the region,
then in triplicate.
Claim for withdrawal benefit or issue of Scheme Certificate –
to be filled in Form 10-C.
Application in Form 10-C/10-D need be filed with the EPF
authorities with whom the compliance has been made.
Application need be filed by the member through the
employer normally.
In case of non availability of the
employer or otherwise difficulty in obtaining employers
endorsement, the application can be filed with attestation
from other authorised officials explaining the position.
Upon death of the member, spouse shall normally file the
claim form for Family Pension benefit.
EMPLOYEES’ PENSION SCHEME, 1995
SETTLEMENT / DISBURSEMENT PROCEDURE
A consolidated Pension Payment Order (PPO) is being issued
covering all types of pensionery benefits payable now as also in
future for member/spouse/children/nominee or dependent
parents including one time lump sum payment for commutation
/ capital return along with relevant regulatory instructions. This
facilitates continuous benefit payment by the disbursing agency
subject to input requirement and obviates the difficulties in
approaching EPF authorities again and again seeking requisite
direction. PPO issued shall be final.
Periodical additions by way of “Pension Relief” allowed, if any,
will be added through the disbursing arrangement automatically
without requiring any action from the beneficiary.
Disbursement of pension is being made by providing credit to
beneficiaries pension payment account every month by a fixed
date. Arrangement exists with banks and post offices across the
country on area basis in this regard. Details in respect of
disbursing points available need be obtained from the office from
where pension disbursement is sought for.
EMPLOYEES’ PENSION SCHEME, 1995
SETTLEMENT / DISBURSEMENT PROCEDURE
Pension payment account will be beneficiary wise to be
operated as savings bank account. No joint arrangement is
permissible.
Pension claim application in Form 10-D need accompany
applicants and / or other Beneficiary’s Verification Scroll in
the prescribed format made available with Form 10 D.
Verification Scroll need be in respect of each beneficiary
separately accompanied with photograph and personal
identification mark.
Member while applying for retirement / superannuation
pension need furnish three passport size photograph of the
member and his / her spouse with attestation on reverse side
of the photograph. Birth Certificate / Age Proof document in
respect of children below 25 years of age need also be
furnished.
Spouse while applying for family pension need furnish death
certificate of the member, certified family members details
and birth certificate of the children along with their
photograph for claiming children pension.
EMPLOYEES’ PENSION SCHEME, 1995
SETTLEMENT / DISBURSEMENT PROCEDURE
Upon members obtaining PPO on retirement,
children’s birth certificate, verification scroll and
photograph will be required to be filed with the
disbursing agency while claiming children pension
after death of the member.
Each year in the month of Nonmember, every
pensioner need file with the disbursing agency
“Life Certificate” and “Non Remarriage Certificate”
in case of spouse, in the prescribed format. Failure
in this regard shall stop pension payment from
January next year.
Beneficiary need report every relevant information
promptly to the EPF / Disbursing Agency for
regulating pension payment in the prescribed
manner.
THANK YOU
INDEX
THE EMPLOYEES DEPOSIT
LINKED INSURANCE
SCHEME, 1976
THE EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME, 1976
Sec. 6C of the Employees Provident Fund & Misc.
Provisions Act, 1952, [as amended vide Act ’99 of
1976], provides for and empowers the Central
Government to frame & notify a Scheme for the
purpose of providing Life Insurance benefits to the
employees of the establishments to which this act
applies.
The Central Government notified the Employees
Deposit Linked Insurance Scheme, 1976 effective from
1st August, 1976.
The Scheme applies to the employees of all the
establishments covered under the EPF & MP Act, 1952,
who have been enrolled to the membership of
Employees Provident Fund Scheme, 1952, or any other
Provident Fund Scheme which has been exempted
under Sec. 17 of the act or paragraph 27/27A of the
scheme thereunder.
THE EMPLOYEES DEPOSIT
LINKED INSURANCE SCHEME, 1976
The scheme is financed with the contribution
from the employer of the establishment @ 0.50%
of the wages of the employees. Until 15.11.1995,
the Central Government also used to contribute
to the fund @ 0.25% of the wages.
The
employees are
contribution.
INDEX
not
required
to
make
any
The Scheme provides for payment of assurance
benefit, upon death of the member while in
service; linked to the average balance in the
provident fund account of the deceased member.
The assurance benefit shall be payable to the
person entitled to receive provident fund
accumulation of the deceased member.
THE EMPLOYEES DEPOSIT
LINKED INSURANCE SCHEME, 1976
INDEX
Scale of benefit payable under the scheme shall be as under :Death cases occurring
during the period
Quantum of benefit payable
1. August 1976 to
February 1990
Equal to the average balance in Provident
Fund a/c of the member subject to maximum
Rs. 10,000.
2. March 1990 to
March 1993
Equal to the average balance in Provident
Fund a/c of the member subject to maximum
Rs. 25,000.
3. April 1993 to
June 2000
Equal to the average balance upto Rs. 25,000
in the Provident Fund a/c of the member plus
25% of the remaining balance, if any, subject
to Rs. 35,000 maximum.
4. July 2000
onwards
Equal to the average balance upto Rs. 35,000
plus 25% of the balance amount, if any,
subject to Rs. 60,000 maximum.
THANK YOU
INDEX
SOCIAL SECURITY –
GLOBAL PERSPECTIVE
Social Security – General Concept
INDEX
“The protection which society provides for its members
through a series of public measures, against the economic
and social distress that otherwise would be caused by the
stoppage or substantial reduction of earnings resulting
from
sickness,
maternity,
employment
injury,
unemployment, invalidity, old-age and death; the
provision of medical care; and the provision of subsidies
for families with children.”
The need for institutionalized social security has arisen
mainly as a result of industrialization and urbanization.
Weakening of the extended family system which used to
provide informal economic and social support on a family
basis is one cause. Another cause is the decline of kinship
and group help availability in communities and villages.
SOCIAL SECURITY
INDEX
Development Background
“Social Security” has been recognized as a basic
human need.
Origin of “Social Security” could be linked with human
civilization.
Social Security need used to be taken care of
informally by the family / community setup in earlier
days.
Need for formal and institutionalized social security
has arisen with the growth of Urbanization /
Industrialization causing erosion in family /
community setup and decline in kinship.
Current trend towards market economy resulting
liberalization / globalization has aggravated the
position further.
SOCIAL SECURITY – GENERAL UNDERSTANDING
INDEX
“Everyone as a member of Society, has the right to social security and is
entitled to realization through national effort and international
cooperation and in accordance with the organization and resources of
each state of the economic social and cultural rights in dispensable for his
dignity and the free development of his personality”.
[Article 22 of the universal Declaration of Human Rights]
“Public Assistance is a sacred duty.
Society owes subsistence to
unfortunate citizens either by procuring them work or by ensuring those
who are unable to work the means of existence”.
[Right to Social Security serving as the preamble to the French constitution of 1793]
“Any kind of collective measures or activities designed to ensure that
members of society meet their basic needs (such as adequate nutrition,
shelter, health care and clean water supply), as well as being protected
from contingencies (such as illness, disability, death, unemployment and
old age) to enable them to maintain a standard of living consistent with
social norms”.
[Mr. I. P. Gtubiq]
“The basic idea of social security is to use social means to prevent
deprivation and vulnerability to deprivation”.
[Dr. Amartya Sen & Jean Dreza]
“Social Security must aim at the maintenance of the level and quality of
life and at the strengthening of individual feeling of security”.
[Mr. Francies Blanchand, Ex. Dea, ILO]
OBJECTIVES OF SOCIAL PROTECTION SYSTEM
Provision of basic
universally available
services
Availability
of income
maintenance benefits
OBJECTIVES
Creation of an environment for development
of additional voluntary retirement income
and access to private health services
CONVENTION NO. 102
INDEX
Long-term
Unemployment
permanent
benefits
disability
Maternity
Temporary
disability
Old-age
Sickness
Survivors
Survivors
Invalidity
Medical care
Pensions
Long-term
benefits
Family
allowances
Short-term
benefits
Employment
injury benefits
INDEX
SOCIAL SECURITY BENEFITS – STANDARD RANGE AND FORM
I.L.O. convention No. 102 identified as a standard measure the
following as common social security need coverage parameters.
S.No. Benefit Type
1.
2.
3.
4.
5.
6.
7.
8.
9.
Old age benefit
Invalidely benefit
Survivors’ benefit
Family benefit
Sickness benefit
Maternity benefit
Medical care benefit
Un-employment benefit
Employment injury
benefit
Classification in general
-
Long-term benefits.
-do-do-doShort term benefits.
-do-do-doCommon – could be either
short term or long term
depending on situational
extent.
INDEX
SOCIAL SECURITY – CONCEPT-CUMFINANCING CLASSIFICATION
Concept Type
Financing & benefit delivery pattern
1.
Social Assistance Scheme
-
2.
Social Insurance Scheme
-
3.
Deposit linked Annuity
Scheme
-
4.
Provident Fund Scheme
-
Generally non-Contributory
- Financed by the State from general
revenues or Social institutions from
common fund
- Provides subsistence support
Contributory financing
- Contributed jointly by State/
Employer/Beneficiary
- Operated on collectively concept
- Provides need based financial report
General contributory
- Provides deposit linked financial
report
Contributory in nature
- Provides deposit linked payment in
lump sum
- No risk coverage
METHODS OF PROTECTION (I)
INDEX
Social insurance schemes
Universal benefit schemes
Provident funds
Their common objective is to guarantee
the elderly the security to which they aspire
during the later part of their lives
METHODS OF PROTECTION (II)
SOCIAL INSURANCE
SCHEMES
Employer
Worker
UNIVERSAL
BENEFIT SCHEMES
PROVIDENT
FUNDS
The state finances
through taxation a
system of uniform
benefits
Employer and
worker contribution
administered by the
state
MEMBERSHIP
Compulsory for
employed persons
All residents
Compulsory for
employed persons
PENSION
ENTITLEMENT
AND PENSION
AMOUNT
Determined by:
The beneficiary’s
professional
career
The beneficiary’s
earnings through
his/her working
life
Pension is paid
without means
testing
Full or partial
pension on a
universal or meanstested basis
Pay a lump sum to
beneficiary who has
reached a stipulated
age and fulfills
certain conditions
FINANCED BY
With or without a
subsidy from the
state
METHODS OF SOCIAL PROTECTION PROVISION
SOCIAL
INSURANCE
UNIVERSAL
Financed by Financed from
contributions
taxation
Pooling of risks
Redistributive
and finances
Benefits
prescribed in
law
Flat-rate
benefits
Based on
contribution
history from
employment
Based on
residence
EMPLOYER
SOCIAL
LIABILITY ASSISTANCE
NATIONAL
PROVIDENT
FUND
Financed Financed from Financed by
taxation
contribution
directly by
employer
Individual
employer
provision
Redistributive
Individual
account
Discretionary Contribution
prescribed in
benefits
law
Based on need
Based on
employment
INTERNATIONAL PERSPECTIVE – CLASSIFICATION OF SOCIAL
SECURITY SCHEMES PREVALENT IN 173 COUNTRIES
Contributory Flat Rate Benefit Scheme
–
19 countries
Contributory Earnings Related Pension Schemes
–
139 countries
Provident Fund Schemes
–
18 countries
Non-Contributory Means – Tested Social
Assistance Schemes
–
25 countries
Flat Rated Universal Social Assistance Schemes
–
5 countries
Mandatory Private Pension Schemes
–
4 countries
Mandatory Personal Savings Private Schemes
–
8 countries
No Old Age, Disabled and Death Programme
–
6 countries
There are countries having both social insurance and social
assistance schemes or provident fund and social insurance schemes. 167
countries out of 173 have in some form or other, schemes for old age,
disability and survivor benefits.
GROWTH OF NATIONAL PROVIDENT FUNDS – GLOBAL VIEW
S.NO.
COUNTRY
YEAR OF INTRODUCTION
1.
MALAYSIA
1951
2.
INDONESIA
1951
3.
INDIA
1952
4.
SINGAPORE
1953
5.
SRILANKA
1958
6.
NEPAL
1962
7.
TANZANIA
1964
8.
KENYA
1965
9.
ZAMBIA
1965
10.
FIJI
1966
11.
UGANDA
1967
12.
SAMOA
1972
13.
SOLOMON ISLANDS
1973
14.
SWAZILAND
1974
15.
KIRIBATI
1976
16.
TUVALU
1979
17.
PAPUA NEW GUINEA
1980
18.
GAMBIA
1981
19.
VANUATU
1986
20.
YEMEN
1987
INDEX
GROWTH OF NATIONAL PROVIDENT FUNDS – GLOBAL VIEW
Termination / Convertion from National Provident Fund System
S.NO.
COUNTRY
COMMENCED/TERMIN
ATED
REPLACEMENT
1.
EGYPT
1955 / 1959
Social Insurance
Pension Scheme
2.
IRAQ
1956 / 1971
-DO-
3.
THAILAND
4.
NIGERIA
1961 / 1994
-DO-
5.
GHANA
1965 / 1991
-DO-
6.
ST. KITTS & NERIS
1968 / 1977
-DO-
7.
GRENADA
1969 / 1983
-DO-
8.
ST. LUCIA
1970 / 1978
-DO-
9.
ANTIGUA
1970 / 1972
-DO-
10.
SEYCHELLES
1971 / 1979
-DO-
11.
DOMINICA
1971 / 1975
-DO-
12.
ST. VINCENT & GRENDADINES
1972 / 1986
-DO-
13.
MONTSERRAT
1972 / 1986
-DO-
ENACTED / NOT IMPLEMENTED
INDEX
SOCIAL SECURITY –
INDIAN CONTEXT
INDEX
SOCIAL SECURITY – INDIAN CONTEXT
– DEVELOPMENT BACKGROUND
In India, there has been no statutory requirement for
providing economic support during old age or becoming
invalid during pre-independence era until 1947, except,
The Workmens’ Compensation Act, 1923 providing for
work injury compensation. So also the survivorship
coverage health care etc. were lacking.
After independence, the Government of India in keeping
with the directive principles of State Policy enacted various
laws and measures in safe guarding the welfare of the
people, and securing assistance in cases of old age, sickness,
disablement and other cases of underserved want.
SOCIAL SECURITY
– INDIAN CONTEXT
INDEX
The State shall in particular, direct its policy towards
securing
–
(a)
that the citizens both men and women equally have
the right to an adequate means of livelihood;
(b)
that the ownership and control of the material
resources of the community are so distributed as best
to sub-serve the common good; and
The State shall, within the limits of its economic capacity
and development, make effective provisions for securing
the right to work, to education and to public assistance in
cases of unemployment, old age, sickness and disablement,
and in other cases of undeserved want.
SOCIAL SECURITY – INDIAN CONTEXT
Prominent legislations enacted by Government of India for
safeguarding welfare/social security in general could be named as
under:1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Workmen’s Compensation Act, 1923.
Coal Mines Provident Fund & Miscellaneous Provisions Act, 1948.
Employees State Insurance Act, 1948.
Employees Provident Fund & Miscellaneous Provisions Act, 1952.
Maternity Benefit Act, 1961.
Seamen’s Provident Fund Act, 1966.
Payment of Gratuity Act, 1972.
Beedi Workers Welfare cess / Fund Act, 1976.
Iron / Manganese / Chrome ore mines labour welfare cess /
Fund Act, 1981.
Cine Workers Welfare cess / fund Act, 1981.
Dock Workers (Safety, Health and Welfare) Act, 1986.
Building and other construction workers welfare cess Act, 1996.
Unorganized workers Social Security Act, 2008
Government has also initiated measures in instituting various
assistance schemes to take care of needy and weaker sections of
population.
COVERAGE UNDER INSTITUTIONALIZED
PROVIDENT FUND SYSTEM IN INDIA
INDEX
Non-Contributory Schemes
Members
Central Government
41.76 lakhs (4.176 Million)
State Government
68.00 lakhs (6.8 Million)
Union Territory Employees
01.63 lakhs (0.163 Million)
Total
111.39 lakhs (11.139 Million)
Contributory Provident Fund Schemes
Members
Employee’s Provident Fund
214.48 lakhs (21.448 Million)
Coal Mines Provident Fund
8.06 lakhs (0.806 Million)
Assam Tea Plantations Provident Fund
7.56 lakhs (0.75 Million)
Seamen’s Provident Fund
0.33 lakhs (0.03 Million)
Jammu & Kashmir Provident Fund
1.45 lakhs (0.145 Million)
Total
231.88 lakhs (23.188 Million)
INDUSTRIAL SCENARIO – WORKING CLASS PROFILE
Total Population (1991)
Labour Force (1991)
837 million
314 million
Distribution of worker
industry-wise
Agriculture
Manufacturing
Community, Social and
Personal Service
Trade
Construction
Transport
Financing, Real Estate,
Insurance & Business
Service
Mining & Quarrying
Electricity, Gas and
Water Supply
Others
Organized Sector
Un-Organized
INDEX
9.4%
90.6%
Distribution of workers by
category of Employment
63.90%
11.13%
08.80%
07.30%
03.96%
02.78%
00.63%
00.77%
00.34%
00.61%
Self Employment
53.6%
Regular Salaried
15.2%
Employment Casual
Wage Employment 31.2%
INDEX
AGE DISTRIBUTION OF POPULATION
Age Group
(in million)
1996
2001
2006
2010
2013
2016
0–4
119.5
108.5
113.5
119.7
120.8
122.8
5–14
233.2
239.1
221.2
215.5
220.0
227.6
15–19
90.7
109.0
122.4
117.4
110.1
104.9
20–24
82.1
90.2
108.5
120.8
120.9
114.6
25–34
141.9
156.6
170.6
190.8
210.7
228.6
35–44
104.8
121.6
139.0
151.0
158.6
167.6
45–54
73.3
85.7
100.2
113.1
123.3
133.7
55–59
26.4
31.1
36.9
41.5
45.8
50.8
60 & above
62.3
70.6
81.8
92.5
101.4
112.9
934.2
1012.4
1094.1
1162.3
1211.6
1263.6
[Source: Statistical outline of India: Tata Services Ltd.]
INDEX
SOURCE STATISTICAL OUTLINE OF INDIA:
TATA SERVICES LTD.
Important Statistical : National Scenario: Year 1999-2000 Position
Total Population
Urban Population
Life expectancy
Labour force
Below poverty line
Per capita income
Organized sector
employment
(1997-98 position)
:
:
:
:
:
:
980 million
32%
63 years
423 million
35%
Rs. 15,038 p.a.
:
28.2 million (2.95%)
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