Any establishment registered under Cooperative Societies Act or State law relating to cooperative societies, employing less than 50 persons and working without paid of power To any establishment belonging to or under Control of Central Government or a State Government and whose employees are entitled to benefit of contributory provident fund or old age pension. To any establishment set up under any Central or State Act and whose employees are entitled to benefit of contributory provident fund or old age pension. Administration of the fund [section 5(1A)]. Both employer and employee have to pay contribution at prescribed rates.
These amounts are credited to a fund. The fund vests in and is administered by Central Board. Employees Covered Under the scheme As per section 2(f), “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer. Thus, Persons employed through contractor in connection with work of establishment are covered Apprentices employed under Apprentices Act or under standing orders of establishment are disqualified, i. . they are not employees. [The model standing orders merely state that an ‘apprentice’ is a learner who is paid an allowance during the period of his training]. Non-eligible Employees Under PF Employee whose ‘pay’ is more than Rs. 6,500 per month are not eligible. Apprentices as per certified standing orders or under Apprentices Act Casual employees. However, employees employed through contractors have also to be covered under PF. Employee to Become member of Fund Immediately on Joining
The Essay on The Employees Provident Fund
About the Employees Provident Fund (EPF) The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions. As a ...
Every employee employed in or in connection with work of a factory or establishment to which the Act applies is entitled and required to become member of Provident Fund, unless he is an disqualified employee. Contribution by Employer & Employee As per section 2(c) “contribution” means a contribution payable in respect of a member under a Scheme or the contribution payable in respect of an employee to whom the Insurance Scheme applies. As per section 6, contribution shall be paid by employer @ 12% of basic wages plus DA – dearness allowance plus retaining allowance.
This amount is defined as ‘pay’. Employees Provident Fund Scheme This is the main scheme under the Act. Both employer and employee have to pay contribution to Provident Fund. The employer has to deduct contribution of employee from the salary of employee and has to pay both employees’ contribution as well as employer’s contribution by a challan in prescribed form. The amount has to be paid in approved bank. EMPLOYEE CAN PAY HIGHER CONTRIBUTION – Employee has to contribute 12% of his ‘pay’ as contribution. The employee can voluntarily pay higher contribution above the statutory rate.
However, employer does not have to match the voluntary contribution, over and above the statutory rate. Contribution Payable under PF scheme The Principal Employer is liable to pay contribution of his own employees as well as employees employed through contractor. Principal Employer can recover from contractor the amount paid by him on behalf of contractor. The contribution is 12% of ‘pay’ i. e. basic wages, plus dearness allowance, cash value of food concession and retaining allowance. Contribution of both employer and employee is same i. e. 12% each. Employer has to pay his contribution to EPF.
He cannot deduct his contribution from wages of the employee. However, he has to deduct employee’s share from his salary and pay the same in EPF scheme. This deduction can be only from the wages pertaining to period for which contribution is paid. However, if there is accidental omission, the amount can be recovered later. Amount deducted from salary of employees is held in trust by the employer or contractor. The balance will be retained in the EPF scheme. Thus, on retirement, the employee will get his full share plus the balance of Employer’s share retained to his credit in EPF account.
The Term Paper on Affirmative Action Employee Leave Employer
FMLA/ADA/Affirmative Action What is the meaning of Affirmative Action? An active effort to improve the employment or educational opportunities of members of minority groups and women. In the U. S. , the effort to improve the employment and educational opportunities of women and members of minority groups through preferential treatment in job hiring, college admissions, the awarding of government ...
Lower Contribution in certain cases The employer’s and employee’s contribution is 12% each. This is applicable to many of industries and establishments. However, this contribution is not applicable to – “any establishment employing less than 20 persons” any establishment registered with Board for Industrial and Financial Reconstruction (BIFR) as a sick company – the lower rate of contribution continues till its net worth is positive * any other establishment which has accumulated loss equal to or more than its assets and has also suffered cash loss in last two years.
Jute industry , Beedi industry ,Brick industry other than the spinning sector. In these cases, the contribution is 10%. Transfer of accounts (1) Where an employee employed in an establishment to which this Act applies leaves his employment and obtains re-employment in another establishment to which this Act does not apply the amount of accumulations to the credit of such employee in the Fund or as the case may be in the provident fund of the establishment left by him shall be transferred within such time as may be specified by the Central Government.
Investment The amount received by way of provident fund contribution is invested by the board of trustees in accordance with the investment pattern approved by the government of India. The members of the provident fund get interest on the money in their provident fund accounts. The rate of interest for each financial year is recommended by the board of trustees and is subject to final decision by the government of India. 2) Where an employee employed in an establishment to which this Act does not apply leaves his establishment and obtains re-employment in another establishment to which this Act applies the amount of accumulations to the credit of such employee in the provident fund of the establishment left by him may if the employee so desires and the rules in relation to such provident fund permit be transferred to the credit of his account in the Fund The Employees’ Pension Scheme, 1995 Applicability EPS, 1995 applies with effect from 16. 11. 995 to all establishments to which EPF,1952 and 1971 were applicable. Eligibility Employer’s and employees’ contribution Protection of provident fund Pensionable salary Pensionable service Formula for calculation of pension Monthly members’ pension = Pensionable salary * pensionable service 70 Employees’ family pension scheme For the purpose of providing family pension and life insurance benefits to the employees of any establishment or class of establishment to which the act applies. the scheme is applicable to all subscribers of employers’ provident fund. Contribution
The Term Paper on Retirement Planning Defined Benefit Vs Defined Contribution
Retirement Planning: Defined Benefit vs. Defined Contribution Defined Contribution and Defined Benefit plans are the two major types of retirement pensions, which are sponsored by the United States employers. When the employee faces the need to make a choice, it becomes crucial to understand the differences between Defined Benefit and Defined Contribution plans, as both of them have their ...
The employees contribution of 8. 33% will be diverted to the fund of pension scheme. Employers contribution is 12%. In such cases, 8. 33% is diverted to pension scheme and balance 1. 67/3. 67% as the case may be, will be in credit of employee’s name in provident fund account. family pension fund from and out of provident fund contributions payable by the employer and employee in each month, a part of the contribution representing one and one and 1/6 the percent from and out of employees contribution is remitted by the employer to the family pension fund. Benefits under the scheme:
Members will get pension on superannuation or retirement from service and upon disablement during employment. Family pension will be available to widow/widower for life or till he/she remarries. In addition, children will be entitled to pension, up to 25 years of their age. Employees’ Deposit Linked Insurance Scheme The Central Government may by notification in the Official Gazette frame a Scheme to be called the Employees’ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies.
The Term Paper on Employee Benefits Pension Plan
Rob Barr Benefits that will come with a job might not make you take the job just because of that. But It could have major influence over your decision. "Flexible scheduling, paid time off, and child care were singled out as key programs that impress job candidates." (web) 3 Employee benefits are becoming a major part of what employees are looking for from their companies. And in return companies ...
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee in relation to whom he is the employer such amount not being more than one per cent of the aggregate of the basic wages dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee. The employer has to pay contribution equal to 0. 50% of the total wages of employee, in addition to administrative charges of 0. 1% of total wages. The employee need not contribute any amount too the scheme. The salary limit for coverage of employees in same as that of provident fund.
