Provident Fund Act 1952

provident fund act 1952

The Employee’s provident fund and miscellaneous provisions act, 1952 is enacted to provide a kind of social security to the industrial workers. The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance.

Applicability of the Provident Fund Act 1952

To every factory employing 20 or more persons.
An employee whose pay at the time he is otherwise entitled to become a member of the fund exceeds Rs.15000/- per month
An Employee who having been a member of the fund, has withdrawn the full amount of his contribution in the fund
(a) on retirement from service after attaining the age of 55 years or
(b) before migration from India for permanent settlement abroad; or for taking employment abroad.

Rates of Contribution

(Provident Fund Act 1952 is Calculated from Basic Salary + DA)

SchemeEmployee’s ContributionEmployer’s Contribution
Employee Provident Fund (EPF)12%3.67%
Employee Pension Scheme (EPS) 8.33% or Rs.1250/-
Employee Deposit-Linked Insurance Scheme (EDLI) 0.50%
EDLI Administrative Charges 0.05%