Type:Preventive Compliance
Frequency: Monthly
Action to be taken:
All employees who are covered under the PF Act or its various schemes have to be required to become members of the Fund from the day the establishment or the employee become eligible. This also applies to employees who have ceased to be excluded from eligibility or employees who used to be members of a private provident fund.
Employees or classes of employees may be exempted from membership as per Paras 27 and 27-A of the PF Scheme, Para 6, 6-A and 7 of the Pension Scheme
Audit Requirement:Have all employees eligible under the PF Act or its Schemes been made members of the Fund ?
Supporting Documents:Written Confirmation of Compliance
Related Triggers:
Hiring a New Employee/Employee Joining The Company
Startup of a New Establishment or Factory
Related Keywords:
Employee Joining The Company
Provident Fund
Related Sections:
Employees Pension Scheme, 1995
6:Membership of the Employees Pension Scheme:
Subject to sub paragraph (3) of Paragraph 1, the Scheme shall apply to every employee,-
(a) who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952 or of the Provident Funds of the Factories and other establishments exempted by the appropriate Government under Section 17 of the Act, or in whose case exemption has been granted under Paragraph 27 or 27-A of the employees' Provident Fund Scheme, 1952, from the date of such membership;
(b) who has been a member of the Employees' Family Pension Scheme, 1971 before the commencement of this Scheme form 16th November, 1995.
(c) who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph 7.
(d) who is been a member of the Employees' Provident Funds or of Provident Funds of Factories and other establishments exempted by the appropriate Government under Section 17 of the Act or in whose case exemption has been granted under Paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, on 15th November, 1995 but not being a member of the ceased employees' Family Pension Scheme, 1971 opts to exercise his option under Paragraph 7.
Employees Pension Scheme, 1995
6-A:Retention of membership:
A member of the Employees' Pension Fund shall continue to be such member till he attains the age of 58 years or he avails the withdrawal benefit to which he is entitled under Para 14 of the Scheme, or dies, or the pension is vested in him in terms of Para 12 of the Scheme, whichever is earlier.
Employees Pension Scheme, 1995
7:Option for joining the Scheme:
(1) Members referred to under sub-para (c) of Paragraph 6 who have died between 1st April, 1993 and 15th November, 1995 shall be deemed to have exercised the option of joining the Scheme on the date of his death.
(2) Members referred to in sub-paragraph (c) of Paragraph 6 who are alive shall have the option to join Scheme as per the provisions of Paragraph 17 from the date of exit from the employment.
(3) Members referred to in sub-paragraph (d) of Paragraph 6 shall have the option to join the Scheme as per the provisions of Paragraph 17 from 16th November, 1995.
Employees Pension Scheme, 1995
8:Resolution of doubts:
If any doubt arises whether an employee is entitled to become a member of the Employees' Pension Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decided the same:
Provided that both the employer and the employee shall be heard before passing final order in the matter.
Employees Provident Fund Scheme, 1952
Chapter:Membership of the Fund|
26:Classes of employees entitled and required to join the Fund.:
(1) (a) Every employee employed in or in connection with the work of a factory or other establishment to which this Scheme applies, other than an excluded employee, shall be entitled and required to become a member of the Fund from the day this paragraph comes into force in such factory or other establishment.
(b) Every employee employed in or in connection with the work of a factory or other establishment to which this Scheme applies, other than an excluded employee, shall also be entitled and required to become a Member of the Fund from the day this paragraph comes into force in such factory or other establishment if on the date of such coming into force, such employee is a subscriber to a provident fund maintained in respect of the factory or other establishment or in respect of any other factory or establishment (to which the Act applies) under the same employer :
Provided that where the Scheme applies to a factory or other establishment on the expiry or cancellation of an order of exemption under Section 17 of the Act, every employee who but for the exemption would have become and continued as a Member of the Fund, shall become a Member of the Fund forthwith.
(2) After this paragraph comes into force in a factory or other establishment, every employee employed in or in connection with the work of that factory or establishment, other than an excluded employee, who has not become a Member already shall also be entitled and required to become a member of the Fund from the date of joining the factory or establishment.
(3) An excluded employee employed in or in connection with the work of a factory or other establishment to which this scheme applies shall, on ceasing to be such an employee, be entitled and required to become a Member of the Fund from the date he ceased to be such employee.
(4) On re-election of an employee or a class of employees exempted under Paragraph 27 or Paragraph 27-A to join the Fund or on the expiry or cancellation of an order under that paragraph, every employee, shall forthwith become a Member thereof.
(5) Every employee who is a Member of a private provident fund maintained in respect of an exempted factory or other establishment and who but for exemption would have become and continued as a Member of the Fund shall, on joining a factory or other establishment to which this scheme applies, become a Member of the Fund forthwith.
(6) Notwithstanding anything contained in this paragraph an officer not below the rank of an Assistant Provident Fund Commissioner may, on the joint request in writing of any employee of a factory or other establishment to which this Scheme applies and his employer, enroll such employee as a Member or allow him to contribute on more than rupees fifteen thousand of his pay per month if he is already a Member of the Fund and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund,
provided that the employer gives an undertaking in writing that he shall pay administrative charges payable and shall comply with all statutory provisions in respect of such employee.
Employees Provident Fund Scheme, 1952
Chapter:Membership of the Fund|
26-A:Retention of membership:
(1) A Member of the Fund shall continue to be a Member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of Exemption under Paragraph 27 or Paragraph 27-A.
(2) Every Member employed as an employee other than an excluded employee, in a factory or other establishment to which the Scheme applies, shall contribute to the Fund, and the contribution shall also be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in Paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of Paragraph 26 and in paragraph 27, or sub-paragraph (1) of Paragraph 27- A, where the monthly pay of such a Member exceeds fifteen thousand rupees, the contribution payable by him , and in respect of him by the employer , shall be limited to the amounts payable on a monthly pay of fifteen thousand rupees including dearness allowance, retaining allowance (if any) and cash value of food concession.
Employees Provident Fund Scheme, 1952
Chapter:Membership of the Fund|
26-B:Resolution of doubts:
If any question arises whether an employee is entitled or required to become or continue as a Member, or as regards the date from which he is so entitled or required to become a Member, the decision thereon of the Regional Commissioner shall be final :
Provided that no decision shall be given unless both the employer and the employee have been heard.
Employees Provident Fund Scheme, 1952
Chapter:Membership of the Fund|
27:Exemption of an employee:
(1) A commissioner may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of the Scheme an employee to whom the Scheme applies on receipt of application in Form I from such an employee :
Provided that such an employee is entitled to benefit in the nature of Provident Fund, gratuity or old-age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and the Scheme.
(2) Where an employee is exempted as aforesaid, the employer shall in respect of such employee maintain such account, submit such returns, provide such facilities for inspection, pay such inspection charges and invest provident fund collections in such manner as the Central Government may direct.
Provided that above mention returns shall be submitted by the employer in electronic format also, in such form and manner as may be specified by the Commissioner.
(3) An employee exempted under sub-paragraph (1) may by an application to the Commissioner make a declaration that he shall become a Member of the Fund.
(4) No employee shall be granted exemption or permitted to apply out of exemption more than once on each account.
Employees Provident Fund Scheme, 1952
Chapter:Membership of the Fund|
27-A:Exemption of a class of employees:
(1) The appropriate Government may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme any class of employees to whom the Scheme applies:
Provided that such class of employees is entitled to benefits in the nature of Provident Fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favorable than the benefits provided under the Act and this Scheme.
(2) Where any class of employee is exempted as aforesaid, the employer shall in respect of such class of employees maintain such account, submit such returns, provide such facilities for inspection, pay such inspection charges and invest provident fund collections in such manner as the Central Government may direct.
Provided that above mentioned returns shall be submitted by the employer in electronic format also, in
such form and manner as may be specified by the Commissioner.
(3) A class of employees exempted under sub-paragraph (1) or the majority of employees constituting such class may by an application to the Commissioner make a declaration that the class of employees shall become Member of the Fund.
(4) No class of employees shall be granted exemption or permitted to apply out of exemption more than once on each account.
(5) The Provisions of this paragraph shall be deemed to have come into force with effect from 14th October, 1953.
