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Unit 6: Employees’ Provident Fund Act, 1952

3. Invalidity Pension: In case of permanent and total disablement during the course of Notes
employment.
4. Widow Pension: Pension from the date following the date of death of the, member whether
in service or after exit of employment or after retirement/commencement of monthly
member pension.

5. Children Pension: Pension to two children of deceased member up to the age of 25 years in
addition to widow.
6. Orphan Pension: Two orphan children up to the age of 25 years entitled for monthly
orphan pension equal to 75 % of the amount of widow pension.
7. Nominee Pension: In case of unmarried members, a person nominated by the member will
get pension equal to widow pension.
6.3.7 Commutation of Pension

Pension shall be allowed for commutation with effect from November 1998. Member can opt for
commutation up to a maximum of one third of pension.

6.3.8 Withdrawal Benefits

A member is allowed withdrawal benefit where a minimum of pension able service of 10 years
has not been rendered on the date of exit/on attaining age of 58 years.

6.3.9 Administration

The pension scheme will be administered by the tripartite Central Board of Trustees set up
under the Employees’ Provident Fund and Miscellaneous Provisions Act. The Regional
Committees set up under the provident fund scheme shall advise the Regional Boards on matters
relating to administration and implementation of the scheme in their respective regions.
Self Assessment

State whether the following statements are true or false:
7. Every member of the Employees’ Provident Scheme 1952 and opted for Employees Family
Pension Scheme 1971 is a member.
8. Employee is not required to contribute separately under the Employees’ Pension Scheme
1996.

9. A member is allowed withdrawal benefit where a minimum of pensionable service of 10
years has not been rendered on the date of exit/on attaining age of 58 years.

6.4 The Employees’ Provident Fund Scheme, 1952

The statutory rate of contribution to the provident fund by the employees and the employers, as
prescribed in the Act, is 10% of the pay of the employees. The term “wages” includes basic wage,
dearness allowance, including cash value of food concession and retaining allowance, if any.
The Act, however, provides that the Central Government may, after making such enquiries as it
deems fit, enhance the statutory rate of contribution to 120k of wages in any industry or class of
establishments.

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