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Unit 6: Employees’ Provident Fund Act, 1952

 The Employees’ Provident Funds Act, 1952 extends to whole of India except the state of Notes
Jammu & Kashmir.

 It applies on every establishment employing 20 or more persons & engaged in industry
specified in Schedule I of the Act or any other activity notified by the Central Government.
 Accordingly, the Employees’ Provident Fund Scheme was framed under Section 5 of the
Act, which came into force on 1st November 1952.
 The Act was further amended in 1976 with a view to introducing Employees’ Deposit
Linked Insurance Scheme, a measure to provide an insurance cover to the members of the
provident fund in covered establishments without the payment of any premium by these
members.

6.9 Keywords

Industry: Economic activity concerned with the processing of raw materials and manufacture of
goods in factories.

Insurance: Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment.

Interest Rate: An interest rate is the rate at which interest is paid by borrowers for the use of
money that they borrow from a lender.
Legislation: Legislation (or "statutory law") is law which has been promulgated (or "enacted") by
a legislature or other governing body, or the process of making it.
Membership: Belonging, either individually or collectively, to a group.

Pension: A pension is a contract for a fixed sum to be paid regularly to a person, typically
following retirement from service.

Salary: A salary is a form of remuneration paid periodically by an employer to an employee,
the amount and frequency of which may be specified in an employment contract.

Scheme: A large-scale systematic plan or arrangement for attaining some particular object or
putting a particular idea into effect.
Superannuation: Superannuation is a union-initiated long-term savings plan designed to help
people in their retirement.
Tripartite: A tripartite is a way of forming a government.

6.10 Review Questions

1. What is the object of the Employees’ Provident Funds and Miscellaneous Provisions Act,
1952?
2. Which are the establishments covered by the Act?

3. Are there any establishments to which the Act is not applicable at all?
4. What are the various modes in which the Central Provident Fund Commissioner can
recover arrears of any amount due from any employer under section 8 of the Act?

5. Can the amount standing to the credit of any member in the fund be assigned, charged or
attached?

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