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Unit 10: Provident Fund and Gratuity Payment Acts

(c) Leaving service in an exempted establishment and re-employment in an unexempted Notes
establishment;
(d) Re-employment in an establishment not covered under the Act.

7. A member of the fund is entitled to get full refund of both the shares of contributions
made by him as well as by his employer with interest thereon immediately after leaving
the service.
8. After the completion of each accounting year, every member of the fund shall be supplied
with an account slip showing:

(a) The opening balance;
(b) The amount contributed during the year;
(c) The amount of interest credited or debited during the year; and
(d) Closing balance.

Errors, if any, should be brought to the notice of the Commissioner within six months.

Notes Exemption
An establishment/factory may be granted exemption under Section 17 if, (i) in the opinion
of the appropriate government, the rules of its provident fund with respect to the rates of
contributions are not less favourable than those specified in Section 6 of the Act, and (ii) if
the employees are also in enjoyment of other provident fund benefits, which on the whole
are not less favourable than the benefits provided under the Act or any scheme in relation
to the employees in any other establishment of a similar character. While recommending
to the appropriate government, grant of exemption under this section, the Employees'
Provident Fund Organisation usually takes into consideration, the rate of contribution,
the eligibility clause, the forfeiture clause and the rate of interest. Also, the totality of the
benefits provided under the rules of the exempted funds is taken into consideration.

The Central Government is empowered to grant exemption to any class of establishments
from the operation of the Act for a specified period, on financial or other grounds under
section 16(2). The exemption is granted by issue of notification in the Official Gazette and
subject to such terms and conditions as may be specified in the notification. The exemption
does not amount to total exclusion from the provisions of the Act. The exempted
establishments are required to constitute a Board of Trustees, according to the rules
governing the exemptions to administer the fund, subject to overall control of the Regional
Provident Fund Commissioner. The exempted establishments are also required to maintain
proper accounts, submit prescribed returns, invest provident fund accumulations in the
manner prescribed by the Central Government from time to time, and to pay inspection
charges. Exemption is liable to be cancelled for breach of any of these conditions.

10.5 The Employees' Pension Scheme, 1995

Employees' Pension Scheme 1995 has been made applicable on 16.11.1995 retrospectively with
effect from 1.4.1993. This new Scheme replaces the erstwhile Family Pension Scheme, 1971.

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