c
cc


c c c

c
"Employee" as defined in Section 2(f) of the Act means any person who is employee for wages
in any kind of work manual or otherwise, in or in connection with the work of an establishment
and who gets wages directly or indirectly from the employer and includes any person employed
by or through a contractor in or in connection with the work of the establishment.

!"#$
All the employees (including casual, part time, Daily wage contract etc.) other then an excluded
employee are required to be enrolled as members of the fund the day, the Act comes into force in
such establishment.

%&#'(&)#
"Basic Wages" means all emoluments which are earned by employee while on duty or on leave
or holiday with wages in either case in accordance with the terms of the contract of employment
and witch are paid or payable in cash, but dose not include

a.? ÷he cash value of any food concession;

b.? Any dearness allowance (that is to say, all cash payment by whatever name called paid to
an employee on account of a rise in the cost of living), house rent allowance, overtime
allowance, bonus, commission or any other allowance payable to the employee in respect
of employment or of work done in such employment.
c.? Any present made by the employer.

c*'+,,c
"Exclude Employee" as defined under pare 2(f) of the Employees' Provident Fund Scheme
means an employee who having been a member of the fund has withdraw the full amount of
accumulation in the fund on retirement from service after attaining the age of 55 years; Or An
employee, whose pay exceeds Rs. Five ÷housand per month at the time, otherwise entitled to
become a member of the fund.

c*&&
'Pay' includes basic wages with dearness allowance, retaining allowance, (if any) and cash value
of food concessions admissible thereon.

c
"-,+,'$
Employees' Provident Fund Scheme takes care of following needs of the members:
./ Retirement ./ Medical Care ./ Housing
.-/Family obligation .-/ Education of Children
.-/Financing of Insurance Polices

0$c#
"-,+,'$0"1# 
As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if
any, payable to employees per month. ÷he rate of contribution is 10% in the case of following
establishments:

? Any covered establishment with less then 20 employees, for establishments cover prior to
22.9.97.

? Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of
the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been
declared as such by the Board for Industrial and Financial Reconstruction,

? Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and

? Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e)
Guar gum Industries/ Factories. ÷he contribution under the Employees' Provident Fund
Scheme by the employee and employer will be as under with effect from 22.9.1997.

c#
"-,+,
"#"&
÷he rate of interest is fixed by the Central Government in consultation with the Central Board of
trustees, Employees' Provident Fund every year during March/April. ÷he interest is credited to
the members account on monthly running balance with effect from the last day in each year. ÷he
rate of interest for the year 1998-99 has been notified as 12%. ÷he rate of interest for 99-2000
w.e.f. 1.7.'99 was 11% on monthly balances. 2000-2001 CB÷ recommended 10.25% to be
notified by the Government.

%#
2/A member of the provident fund can withdraw full amount at the credit in the fund on
retirement from service after attaining the age of 55 year. Full amount in provident fund can also
be withdraw by the member under the following circumstance:

? A member who has not attained the age of 55 year at the time of termination of service.

? A member is retired on account of permanent and total disablement due to bodily or
mental infirmity.

? On migration from India for permanent settlement abroad or for taking employment
abroad.

? In the case of mass or individual retrenchment.

%/In the case of the following contingencies, the payment of provident fund be made after
complementing a continuous period of not less than two months immediately preceding the date
on which the application for withdrawal is made by the member:

? Where employees of close establishment are transferred to other establishment, which is
not covered under the Act:

? Where a member is discharged and is given retrenchment compensation under the
Industrial Dispute Act, 1947.
($,"&0&!"""
A member can withdraw upto 90% of the amount of provident fund at credit after attaining the
age of 54 years or within one year before actual retirement on superannuation whichever is later.
Claim application in form 19 may be submitted to the concerned Provident Fund Office.

2''++&#&,'&#,!"
Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal
heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office.

"&#"
"-,+,&''+ 
÷ransfer of Provident Fund account from one region to other, from Exempted Provident Fund
÷rust to Unexampled Fund in a region and vice-versa can be done as per Scheme. ÷ransfer
Application in form 13 may be submitted to the concerned Provident Fund Office.

& 
÷he member of Provident Fund shall make a declaration in Form 2, a nomination conferring the
right to receive the amount that may stand to the credit in the fund in the event of death. ÷he
member may furnish the particulars concerning himself and his family. ÷hese particulars
furnished by the member of Provident Fund in Form 2 will help the Organization in the building
up the data bank for use in event of death of the member.

2+&&&''+
As soon as possible and after the close of each period of currency of contribution, annual
statements of accounts will de sent to each member through of the factory or other establishment
where the member was last employed. ÷he statement of accounts in the fund will show the
opening balance at the beginning of the period, amount contribution during the year, the total
amount of interest credited at the end of the period or any withdrawal during the period and the
closing balance at the end of the period. Member should satisfy themselves as to the correctness f
the annual statement of accounts and any error should be brought through employer to the notice
of the correctness Provident Fund Office within 6 months of the receipt of the statement.

($&#
"-,+,3
$"&"0"-,+,#

u



 





 


($&&"$3

c
"-,+,.c
/
÷he Employee Provident Fund, is a retirement benefit scheme that is available to salaried
employees.

Under this scheme, a stipulated amount (currently 12%) is deducted from the employee's salary
and contributed towards the fund. ÷his amount is decided by the government.÷he employer also
contributes an equal amount to the fund.

However, an employee can contribute more than the stipulated amount if the scheme allows for
it. So, let's say the employee decides 15% must be deducted towards the EPF. In this case, the
employer is not obligated to pay any contribution over and above the amount as stipulated, which
is 12%.

$"
#

44444444444444444444444

- Return on Investment: 8.5%

- If you urgently need the money, you can take a loan on your PF. You can also make a
premature withdrawal on the condition that you are withdrawing the money for your daughter's
wedding (not son or not even yours) or you are buying a home.

- tax benefit under Sec 80C.

- ÷he amount if withdrawn after completing 5 years in job will not be taxable.

+!'
"-,+,.

/

÷he Public Provident Fund has been established by the central government. You can voluntarily
decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer
or even working on a contract basis. You can also open this account if you are not earning.

Any individual can open a PPF account in any nationalised bank or its branches that handle PPF
accounts. You can also open it at the head post office or certain select post offices.

You can take a loan on the PPF from the third year of opening your account to the sixth year. So,
if the account is opened during the financial year 1997-98, the first loan can be taken during
financial year 1999-2000 (the financial year is from April 1 to March 31).

÷he loan amount will be up to a maximum of 25% of the balance in your account at the end of
the first financial year. In this case, it will be March 31, 1998.

You can make withdrawals during any one year from the sixth year. You are allowed to
withdraw 50% of the balance at the end of the fourth year, preceding the year in which the
amount is withdrawn or the end of the preceding year whichever is lower.
For example, if the account was opened in 1993-94 and the first withdrawal was made during
1999-2000, the amount you can withdraw is limited to 50% of the balance as on March 31, 1996,
or March 31, 1999, whichever is lower.

If the account extended beyond 15 years, partial withdrawal -- up to 60% of the balance you have
at the end of the 15 year period -- is allowed.

($"'&+&

&''+.
,&/

- At designated post offices throughout the country

- At designated branches of Public Sector Banks throughout the country.

##

- Minimum deposit required is Rs. 500 in a financial year.

- Maximum deposit limit is Rs. 70,000 in a financial year.

-Maximum number of deposits is twelve in a financial year.

$"
#

44444444444444444444444

- Return on investment : 8%

- tax benefit under Sec 80C , no tax on the maturity and no tax on interest earned.

- If you¶re involved in a legal dispute, a court cannot attach or question the money in your PPF
account.

($#$&-#



44444444444444444444444444444444

Its mainly for people who are very conservative and cant take risk to great extent. Any one who
wants to invest for long term in some secure saving instrument must invest in PPF. ÷o achieve
long term goals there are many option like:

D
 
 

D 
  

D 

D    


D 


D 

Out of these , all under Debt catagory are safe. PPF is the most recommended if the investment
horizon is very long like 15+ years.