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Benefits

PROVISIONS OF THE EMPLOYEES' PROVIDENT FUND SCHEME 1952 ON SETTLEMENT OF EMPLOYEES' PROVIDENT FUND CLAIMS

For reading material refer :
Employees' Provident Fund Scheme, '52 - para 69 , 70 , 72(1) , 72(2) , 72(3) , 72(3A) , 72(4).

Forms prescribed for claiming the Provident Fund dues :
By a member :through Form 19
On death of member by nominee/family member(s)/legal heirs: through Form 20

SETTLEMENT UNDER PARA 69-TO MEMBER:
THROUGH FORM No.19

 

Settlement under para 70:

Immediate settlement without waiting period of 2 months

Settlement only after a waiting
period of two months

69(1)(a) Retirement after attaining 55 years of age.

69(1)(e)(i) transfer of a non retrenched employee from a closed establishment to uncovered establishment.

69(1)(b) Retirement on account of total and permanent incapacity due to bodily or mental infirmity .

69(1)(e)(ii) Transfer of an employee from a covered establishment to an un-covered establishment under the same employer.

69(1)(d) Termination of service on retrenchment.

69(2) Other cases viz. Resignation, Leaving service, etc.

69(1)(dd) Termination on V.R.S

Note: For female members leaving service for the purpose of getting married; waiting period not applicable.

69(1)(c) Migration from India for permanent settlement abroad or taking employment abroad.

69(1)(e)(iii) Members discharged & retrenchment compensation paid under I.D. Act 1947.

(Accumulation of a deceased member) through Form No. 20

70(i) If a nomination exists, payment is made to the nominee in accordance with Form 2(R) . (Nomination and Declaration Form).

70(ii) If no nomination subsists, payment is to be made to every member of his family (as defined under para-2(g) of Employees' Provident Fund Scheme 1952) in equal share. For the purpose of this paragraph, a member's posthumous child, if born alive , shall be treated as a surviving child, born before the member's death.

But the following will not be eligible for any share, if other family members are available to receive the accumulations.

  • Major sons ,
  • Major sons of a deceased son ,
  • Married daughters whose husbands are alive ,
  • Married daughter of a deceased son whose husbands are alive.
  • 70(iii) In cases where para 70(i), 70(ii) , does not apply, the payment is to be made to the person who is legally entitled to it, vide para 70(iii). In case there is no nominee and also there is no person entitled to receive the amount, if the amount to the credit of the fund does not exceed Rs. 10,000/-, the Commissioner may pay such amount to the claimant after enquiry and after satisfying the title of the claimant.

    When the payment is to be made to a minor, it is payable to :
  • The Guardian appointed under Guardian and Wards Act 1890 , failing (a), to
  • The Guardian appointed by the member as per para 61(4A), failing (a),(b), to
  • To the natural guardian of the minor, failing (a) (b) (c), to
  • To the person , considered to be the proper person by the commissioner when the amount not exceeding Rs.20,000/- or the person considered to be the proper person , by the Chairman , C.B.T where the amount exceeds Rs. 20,000/- . Para-72(3)
  • When the payment is to be made to a lunatic person , it is payable to:
  • The Manager appointed for the minor's estate under Indian Lunacy Act ,1912 failing (a),
  • The natural guardian of the lunatic, failing (a)(b),
  • To the person considered by the Commissioner as proper person , amount not exceeding Rs.20,000/- or to person considered by Chairman C.B.T as proper person amount exceeding Rs. 20,000/-. Para-72(3A)
  • Note: Maximum amount payable by money order is Rs.2000/- and beyond that by cheque. If the amount is beyond Rs. 500/-, the M.O. cost will be borne by the claimant.

    Para 70(A):

    If a person entitled to received a share in the Provident Fund accumulations of a deceased member is charged with committing the murder of the member or with abetting the crime, the share payable to such person shall be retained till the case is finalised . If, subsequently he/she is exonerated, the share will be paid to him/her. If such a person is found guilty and convicted, the share will be paid equally to other person(s) entitled to receive the accumulations.

WITHDRAWALS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

The purchase of site for construction of house

5 Years of membership of the Fund (Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member spouse.
 

l 24 months wages (Basic & DA)
OR
l Member’s own share of contribution + Company’s share of Contribution with interest thereon

No.31

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances and the same is under the title of the member or the spouse (notification dated 25.2.2000)

The Construction of House

5 Years of membership of the Fund

(Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member & spouse.
 

l 36 months wages (Basic+DA)
OR
l Members own share of contribution + Company’s share of contribution with interest thereon

No.31

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances and the same is under the title of the member or the spouse (notification dated 25.2.2000)
 

The purchase of dwelling flat

5 Year of membership of the Fund

(Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member & spouse.
 

l 36 months wages (Basic+DA)
OR
l Members own share of contribution + Company’s share of contribution with interest thereon

No.31

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances and the same is under the title of the member or the spouse (notification dated 25.2.2000)

Additions, Alterations or improvements to the dwelling house

5 years from the date of completion of dwelling house

12 months basic or members own share of contribution with thereon.

No.31

 

68 BB : REPAYMENT OF LOAN

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Advance from the fund for repayment of loan

10 years membership of the fund & member should have taken loan from Govt. Body

36 month wages (Basic + DA)
OR
Members own share of Contribution + Company’s share of Contribution with interest thereon.

No.31

A certificate from the lending authority furnishing the details of loan and outstanding amount.

68 J : ADVANCE FROM FUND FOR ILLNESS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Advance from the fund for illness viz. hospitalisation for more than a month, major surgical operation or suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc.

Stay in Hospital at least for a month

6 moths wages (Basic + DA)

No.31

A certificate from the Medical Practitioner for hospitalisation or operation.

68 K : ADVANCE FROM THE FUND FOR MARRIAGE

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

l Advance from the fund for Marriage of self/son/daughter/ sister/brother etc.
l Advance from the fund for education of Son/Daughter

l 7 years membership of the fund & minimum balance in member’s account should be Rs. 1000/-

l 50% of member’s own share of contribution
 

No.31

Declaration by the member which is attested by the employer.

68L : ADVANCE IN ABNORMAL CONDITIONS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Grant of advance in abnormal conditions, Natural calamities etc.

l Certificate of damage from appropriate authority.
l State Govt. declaration.

l Rs. 5000/- or 50% of member’s own share of contribution (To apply within 4 months)

No.31

l Certificate from the Appropriate Authority.

68 M : ADVANCE TO MEMBER AFFECTED BY CUT IN THE SUPPLY OF
ELECTRICITY

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Grant of advance to members affected by cut in the supply of electricity

l The advance may be granted only to a member whose total wages for any one month commencing from the month of January 1973 were 3/4th or less than 3/4th of wages for a month

l Wages for a month
OR
l Rs.300/-

No.31

Certificate from State Govt. regarding cut in the supply of electricity.


68 N : GRANT OF ADVANCE TO MEMBERS WHO ARE PHYSICALLY HANDICAPPED

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

To Physically Handicapped member for purchase of an equipment required to minimize the hardship on account of handicap.

Production of medical certificate from a competent medical practitioner to the effect that he is physically handicapped

Basic wages+ DA for six months
or own share of contribution with interest or cost of equipment which ever is least.

No.31

Certificate from the Medical practitioner to the effect that the member is physically handicapped..

Note: For calculation/ computing the period of membership U/P 68B, 68BB, 68K, total service exclusive of periods of break under the same employer before the scheme is applied to him, as well as period of membership of the fund is always included.

Benefits to the Organisation

  • Cost of withholding PF monies will increase in relation to the cost of borrowing money from the bank or in the market. This will seek to create an environment that makes it cheaper to comply and expensive to under report or non-report employment and contributions in a timely manner.
     
  • Separate collection program will be designed and put in place that will address the issue of collection of unpaid arrears. The program will be entirely IT driven drawing information from the accounting function. Special teams in designated EPF call centers that will chase all delinquent accounts on a day to day basis.
     
  • Special programs for extending the reach of EPF schemes over the informal sector, migrant labour and service industry will be put in place to ensure enrolment and transfer of benefits under the programs to such categories of workers.
     
  • Each EPF employee (task holder) will have the information required to complete his/her task on his/her desktop terminals.
     
  • Retooled book-keeping & accounting function will maintain reconciled upto-date accounts in real time on a secure and shared database that will support and be accessible to all program divisions.
     
  • Record keeping and paper management will be organised along modern lines with IT enabled indexing for archiving and retrieval. This effort will also decongest EPF work places and improve the physical environment.
  • Special HRD effort will enhance the knowledge and skill levels of our existing officers & staff to help them adjust and absorb change in work methods.

The objective in the creation of such a system is to register geometric growth in the membership corpus of EPF/ improved customer client services.

Benefits to Subscribers

The Re-invented EPF will enable the subscriber to

  • Walk into any of the 260 EPF offices in the country, insert a unique identity smart card i.e. social security card into a kiosk and read his account balance on the screen.
     
  • By paying a small fee (Rs.5) and inserting a coin into the kiosk, he will be able to get a print out of his PF account balance for the last completed month.
     
  • The subscriber will be able to file any claim for early withdrawal from the account or for final settlement at any of the 260 offices across the country regardless of where the subscriber was last enrolled.
     
  • The turn around time as per Declared Service Standard of EPF will be 2-3 days between the receipt of a claim and the issue of a cheque and/or electronic credit of the amount in the subscribers bank account.
     
  • Change of jobs and/or location will not involve any transfer of account from the previous office or employer and the subscribers account will be accessible from any of the EPF offices across the country. This will eliminate all transfer delays.
     
  • EPFO will maintain a subscriber-wise individual running ledger account in real time that will credit interest on monthly balance for each month.
     
  • Regardless of who the employer is or where the worker is working, including the highly mobile migratory construction workers, the individual running ledger account of each worker carrying the unique identity number (SSN) will remain constant and accessible to such worker/member from any location or EPF kiosk.
     
  • Eventually EPF will extend the facility of EPF kiosks to other public places and to locations within or close to industrial estates and/or where there is concentration of members to provide the facility any time, any place.
     
  • The EPF will provide for electronic filing of claims of members through employers in order to cut down the cost and improve service and convenience for subscribers.
EPFO Mangalore