Page 254 - DMGT516_LABOUR_LEGISLATIONS

Unit 10: Provident Fund and Gratuity Payment Acts

employee's contribution shall be equal to the employer's contribution, i.e. 10% or 12% as Notes
the case may be. The employee is not required to contribute towards Deposit-linked
Insurance Fund.
5. The employer is required to pay the following administrative charges also:
(a) w.e.f. 1.8.1998 @ 1.10% (0.65% up to 31.7.98) of the employees' wages, subject to a
minimum of 5 every month, for administration of Provident Fund.
(b) 0.01% of the employee's wages, subject to a minimum of 2 every month, for
administration of Deposit-Linked Insurance Fund.

6. The employer should, within 15 days of the close of every month, deposit the total amount
of the employer's and employees' contributions and administrative charges with P.F.
Commissioner into the respective accounts maintained at the State Bank of India.

Did u know? The amounts deposited into the Provident Fund Account are invested in
specified securities and under Special Deposits Scheme. The Commissioner shall credit to
the provident fund account of each member interest at such rate as the Central Government
may determine, on the balance standing to his credit on first day of April each year. The
rate of interest notified for the year 1998-99 was 12% p.a. The rate of interest had been
reduced to 11% w.e.f. 1.4.2000 and further reduced to 9.5% w.e.f. 1.4.2001. Interest is also
earned on the Family Pension Fund and Deposit-linked Insurance Fund Accounts.
Under the Employees' Provident Fund Scheme, the Central Government, on the
recommendation of the Central Board of Trustees, declares the rate of interest to be credited
annually to the accounts of provident fund subscribers.
7. The employer is required to prepare a contribution card in Form 3-A, in respect of each
member-employee. The card shall be valid for a period of one year and thereafter a new
card shall be prepared for the next year. The wages of employee, provident fund and
family pension fund contribution recovered and remitted every month and break in
reckonable service should be entered therein.
8. The employer is required to send to the Commissioner, a Monthly Return of Contributions
within 25 days of close of each month, along with receipted triplicate copies of challans for
the amount of Provident Fund, Family Pension Fund and Deposit-linked Insurance Fund
contributions and the administrative charges deposited into the State Bank of India.
9. If no contributions have been recovered during a month, a nil return shall be furnished by
the employer. The employer should retain a duplicate copy of the statement and the
fourth copies of the challans with himself.
10. The employer should send to the Commissioner a Consolidated Annual Contribution
Statement in Form 6A within one month of the close of the year, showing the employer's
and employee's contribution in respect of each employee made during the year. The
employer should retain a duplicate copy of the statement with himself.

10.4 Employees Benefits under the Scheme

1. Under the scheme, a member can withdraw the full amount standing to his credit in the
fund, in the event of:
(a) Retirement from service after attaining the age of 55;
(b) Retirement on account of permanent and total incapacity;

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