Social
Security
As an ILO publication puts it in life of man
there are two stages of dependency childhood and
old age and in the intervening years of adult
life, there are likely to occur spells during
which he/she cannot earn his/her living. Illness
enters into everyone’s life and the apprehension
of it is felt at all ages. A person who falls
ill Is threatened with two stages of unemployment,
at first because he can not work and later because
he would have lost his job.Similarly everybody
is exposed to a certain number of risks or contingencies
viz. unemployment, sickness, invalidity, maternity
(in case of female), employment injury, old age
and death of the breadwinner.For the great majority
of those who have nothing to live on but their
earnings any of these risks or contingencies,resulting
inevitably in loss of income is liable to plunge
workers and their families into extreme troubles
and poverty. Instinct sees directly to the reaming
of children but Nature & concern for other
cases of dependency is less clear and more remote.
It is here that the raison of d’etre of
Social Security lies; for where Nature cannot
function for the good man, it is the social organism
intervene in his interest. Social Security provides
income security, it is an attack upon want. WANT
is the only one of the five giants on the road
to reconstruction and in some ways the easiest
to attack. The other giants are Diseases, Ignorance,
Squalor and Idleness.
E.P.F.O. - INDIA
Employees Provident Fund Organization in India
is an autonomous tripartite body under the control
of Ministry of Labour, Government of India with
its head office In NEW DELHI. The central govt.
may notification in the official gazette constitute,
with effect from such date as may be specified
therein, a board of trustees (C.B.T.) for the
territories to which this Act extends. Accordingly
Central Board of Trustees has been Constituted.
It consists of central/state govt. representatives,
representatives of employers& Establishments
and representatives of the employees in the establishments.
EPFO is providing social service through its 17
Regional offices and their sub regional offices
to its 23 million members.It has its own training
academy as National Academy for Training and Research
in Social Security (NATRSS), with its four zonal
offices and Head office in New Delhi. Officers
of social security from India and abroad are participating
in various courses run by academy. Organisation
is also member of International Social Security
Association.
Handing over Pension Payment
Order in LOK ADALAT
All establishments working in these districts
to which EPF & MP ACT1952 is applicable are
required to comply with this office. Employees
working in these establishments can file their
claims to this office. This office is working
since 1985.It is headed by a REGIONAL PROVIDENT
FUND COMMISSIONER and other officers and staff
for Trouble free service to the members. There
are 5923 establishments and 2.26 Lac Members with
this office as on 31-12-2000. Public Grievances
are given top priority.Members can meet the Commissioner
on every Friday. Every 10nth of the month is a
LOK ADALAT day for Chronic cases. This office
is equipped with EDP center for the convenience
of the members with E-mail facility.
EPF & MP ACT 1952
This act is called Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952.It
extends to the whole of India except Jammu and
Kashmir.
Applicability {section
1(3)}: -
Subject to the provisions contained in section
16, it applies-
(a) to every establishment which is a factory
engaged in any industry specified in Schedule
I and 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:
Provided that the central government may, after
giving not less than two months’ notice
of its intention so to do, by notification in
the official gazette, apply the provisions of
this Act to any establishment employing such number
of persons less than twenty as may be specified
in the notification.
{Section 16 of the Act}: - Act
not to apply to certain establishments-
(1) This act shall not apply
a. To any establishment registered under the co-operative
societies Act, 1912 (2 of 1912), or under any
other law for the time being in force in any state
relating to cooperative societies employing less
than 50 persons and working without the aid of
power; or
b. To any other establishment belonging to or
under the control of the Central Government or
a State Govt. and whose employees are entitled
to the benefit of contributory provident fund
OR old age pension in accordance with any Scheme
or rule framed by the Central Govt. or the State
Govt. governing such benefits; OR
c. To any other establishment set up under any
Central, Provincial or State act and whose employees
are entitled to the benefits of contributory provident
fund OR old age pension in accordance with any
scheme or rule framed under that act governing
such benefits.
Voluntary Applicability
{section 1(4)}:
Not with standing anything contained in sub section
(3) of this section or sub section (1) of section
16, where it appears the Central Provident Fund
Commissioner, whether on application made to him
in this behalf or otherwise, that the employer
and the majority of employees in relation to any
establishment have agreed that the provisions
of this act, should be made applicable to the
establishment, he may by notification, in the
official gazette, apply the provisions of this
act to that establishment on and from the date
of such agreement or from any subsequent date
specified in such agreement.
Continuity of the ACT
{section 1 (5)}: -
An establishment to which this act applies shall
continue to be governed by this act not withstanding
that that the number of persons employed therein
at any time falls below twenty.
Establishment to include all departments and branches
{section 2A}: -
For the removal of doubt, it is hereby declared
that where an establishment consists of different
departments or has branches, whether situated
in the same place or in different places, all
such departments or branches shall be treated
as parts of the same establishment.
Schemes framed under the act -The act consists
of three beneficial schemes:
1.Employees Provident Fund Scheme 1952
2.Employees Pension Scheme 1995
3.Employees Deposit Linked Insurance 1976
Disputes about applicability
and determination of dues {Section7A}: -
(a) In a case where a dispute arises regarding
the applicability of this Act to an establishment,
any P.F. Commissioner authorized in this regards,
may, by order, decides such dispute, and determine
the amount due from any employer under any provisions
of this Act and the schemes framed there under,
and for any of the above said purposes may conduct
such inquiry as he may deem fit. Such inquiry
officer is empowered under the code of Civil Procedure,
1908 (5 of 1908), for trying a suit in respect
of the following matters, namely: -
(a) Enforcing the attendance of any person or
examining him on oath;
(b) Requiring the discovery and production of
documents;
(c) Receiving evidence on affidavit;
(d) Issuing commission for the examination of
witnesses, and any such inquiry shall be deemed
to be a judicial proceeding within the meaning
of section 193 and 228,and for the purpose of
section 196 of the Indian {section Penal Code
(45 of 1860)
Review of orders passed
under section 7A :- {7B}
Within 45 days of making an order u/s 7A, any
person aggrieved by such order, can apply for
review of such order on certain conditions &
grounds in a prescribed form as provided in the
Act and Scheme.
Recovery of dues {section
8)
Any amount due from the employer of an establishment
to which the act is applicable, can be recovered
by any of the modes as provided in the section
8B to 8G of the Act which in brief are as under:
-
(a) Attachment and sale of the moveable and immovable
property of the establishment or, as the case
may be, the employer;
(b) Arrest of the employer and detention of him
in prison;
(c) Appointing a receiver for the management of
the moveable or immovable properties of the establishment
or, as the case may be, the employer;
(d) Under section 8F by other modes of recovery.
Inspector {section 13}: -An inspector is appointed
by appropriate government who can for verifying
the correctness of information at reasonable time
enter any establishment or any premises connected
therewith and require production of records &
documents relating to books of accounts of the
establishment from the person, whosoever he may
be, who is found in charge of such premises. He
can take abstract or copy of any of such document
or record or can exercise all or any of the powers
conferred on him and the provisions of the Code
of Criminal Procedure, 1898 (5 of 1898) shall,
so far as may be, apply to any search and seizure
under sub section (2) or under sub section 2A,
as the case may be, as they apply to any search
or seizure made under the authority of a warrant
issued under section 98 of the said code. Inspectors
in EPFO are re-designated as Enforcement Officers.
Penalties & Prosecutions
{section 14}: -
This section deals with various provisions relating
to penalties and prosecutions for violating any
of the provisions of the Act or Any Scheme framed
there under. It includes damages payable u/s 14B
to the tune of 100% and interest payable u/s 7Q
@ 12% p.a. In addition to financial penalties
there are provisions for imprisonment even for
non-filing of returns and other documents as required
under the Act or as may be called by the commissioner.
Exemption from the Act
{section 17}: -
The appropriate government may exempt any establishment
any establishment on certain conditions as may
be specified whether prospectively or retrospectively
from all or any of the provisions of any Scheme.
Here it is clarified that exemption is available
from the scheme and not from the Act. Thus if
an establishment is granted exemption it will
monitor the funds & shall settle the claims
by creating a trust with certain conditions.Which
will be under the control and provision of the
concerned PF authorities of that area. PF authorities
shall inspect the trust and the establishment
so exempted periodically. In case of violation
of any of the conditions imposed while granting
exemption, competent authority may cancel exemption
after providing opportunity to the establishment
of hearing.
Appeals to the tribunal
{section 7-I to 7L}: -
Any person aggrieved by a notification issued
by the Central Govt. or an order passed by the
Central Govt. or any authority under proviso to
sub section (3), or sub section (4), of section
1 or section 7A or section 7B or section 7C or
section 14B of the ACT, may prefer an appeal to
tribunal against such order in such form and manner,
within such time and be accompanied by such fee
and manner as may be prescribed in the scheme.
EMPLOYEES PROVIDENT FUND
SCHEME 1952
Important matters provided for in the scheme
are as under: -
Membership
Every employee employed in or in connection with
the work of a factory or other establishment directly
or through or by a contractor to which this scheme
applies, other than an excluded employee, shall
be entitled and required to become a member of
the fund from the day he joins.
Excluded employee
Means an employee whose pay at the time of joining
exceeds Rs. Five thousands per month or an employee
having been a member of the fund, withdraw the
full amount of his accumulation on retirement
from services OR due to migration from India to
any other country for permanent settlement.
Contribution
A contribution @ 12% of the pay is payable by
the employer and the same is payable by the employee.
Employer should deposit it every month before
15th of the next month succeeding to the month
for which pay is due.
Damages & Penalties
Any violation in deduction and deposit thereof
within stipulated period will attract provisions
of damages u/s 14B of the Act read with Para 32A
of the scheme. It may range from 17% p.a. to 37%
p.a. subject to maximum 100% of the amount due.
In addition interest u/s 7Q is also payable @
12% p.a. Non-deposit of employee share after deduction
within stipulated period attracts section 406
and 409 of Indian Penal Code.
Declaration
Every employer shall before taking any person
into employment, ask him to state in writing whether
or not he is a member of the fund. In case of
every person who is required or entitled to become
a member of the fund shall also furnish a nomination
in form no. 2 in respect of each such member.
The employer within specified time limit should
submit such declaration and nomination to the
commissioner.
Duties of employer
Every employer shall furnish to the commissioner
information about:
(a) Ownership and names of responsible persons
of the establishment.
(b) Declaration and nomination.
(c) Joining and leaving of service by the members.
(d) Form 12A with monthly challans of deposit.
(e) Form 9 for details of employees.
(f) Form 3A/6A at the end of the financial year.
(g) Any other information as may be required under
Para 76 of the scheme
Duties of contractor
Every contractor shall, within seven days of
every month, submit to the principal employer
a statement showing the recoveries of contributions
in respect of employees employed by or through
him and shall also furnish to him (principal employer)
such information as the principal employer is
required to furnish under the provisions of the
scheme to the commissioner.
Interest
On accumulation of provident fund in the account
of members interest is payable by the EPFO at
the rates as may be specified by Govt. from time
to time. Presently the rate of interest is 11%p.a
for the year 2000-2001.
Advances
Following non refundable advances are available
to the members on certain conditions out of accumulations:
-
(a) For dwelling house/flat or for construction
of house including suitable site for the residential
purposes.
(b) For repayments of loans taken from Govt. agencies
under housing schemes.
(c) For illness, hospitalization & major surgical
operations.
(d) For marriage of self, children, dependent
brothers/ sisters or post matriculation education
(e) For abnormal conditions like earthquake, flood,
riots, etc where property is damaged
(f) For members affected by cut in supply of electricity
in the area where factory is situated
(g) For members who are physically handicapped.
In case of lockout other than a strike non-refundable
advance is available. On continuation of lockout
more than six months further advances can be granted
subject to certain conditions.
Special advances
Any member who is to retire within one year can
withdraw 90% of his accumulations without any
specific reasons, as non-refundable .It is also
applicable in exempted establishments. But retirement
age should not be less than 55 years of age in
any establishment.
FINAL WITHDRAWLS/ REFUNDS
A member may withdraw full amount standing to
his credit in the fund in following circumstances
in prescribed forms duly complete in all respects
within 30 days of the receipt of the claim in
the EPF office: -
(a) On superannuating or retirement form the
services;
(b) On account of permanent and total incapacity
for work and retirement from services at any age
due to bodily or mental infirmity duly certified
by medical officer;
(c) Immediately before migration from India for
permanent settlement abroad;
(d) On termination of service in case of mass
or individual retrenchment;
(e) On termination of services under a voluntary
scheme of retirement in following circumstances
a member can claim refund only after a waiting
period of two months after the date of leaving
services:
(a) If he/she has left the service prior to the
age of retirement and not reemployed anywhere;
(b) If after leaving service a person has rejoined
service in such an establishment where EPF and
MP Act is not applicable.
DECEASED MEMBER’S
OR PAYMENTS IN CASE OF DEATH OF A MEMBER
In case of death of a member the accumulation
are payable:
(a) Nominee, if nomination has been filed;
(b) In case of no nomination, to family members
equally;
(c) In case of no nomination or no family, to
legally entitled person on proof of such entitlement.
STATEMENT OF a/c
Every member is served with a statement of a/c
through the employer a close of every year saving
his/her balance in the fund with interest etc.
SPECIAL PROVISION for
NEWSPAPERS AND CINE WORKERS
There are special provisions in Para 80 and 81
of the scheme for the employees of the newspapers
establishments and cine workers including theatres.
EMPLOYEES PENSION SCHEME
1995
This scheme came into force w.e.f. 16/11/1995.
Prior to this scheme there was Family Pension
Scheme 1971which has been replaced now by EPS-95.
Every person who is member of Provident Fund Scheme
1952 is required to be a member of EPS-95. Salient
features of EPS-95 are as under:
CONTRIBUTION
Presently employer has to contribute 12% of the
pay of the employee as EPF contribution. Out of
this 8.33% is transferred to EPS-95. The central
government also contributes to the EPS-95 fund.
No contribution is required to be paid by the
member in this scheme
BENEFITS {Para 12}
The member and his/her family is entitled for
following kinds of pensions:
(a) Superannuation Pension
(b) Retirement Pension
(c) Short Service Pension
(d) Widow Pension
(e) Children Pension
(f) Orphan Pension
(g) Permanent Disablement Pension
MONTHLY MEMBER’S
PENSION
Members can be divided
in two categories as under:
1. New members-
Those who joined this scheme on or after 16/11/1995
2. Existing members-
Those who are having contributory service prior
to 16/11/95 under the Family Pension Scheme 1971
and also continued after 16/11/95 MMP shall be
calculated for new members as under: - |
