· Employees Provident Fund Organisation.

Introduction

• - The employee Provident Fund is key social mechanism under the code of Social Security. 2020 aimed at providing financial protection to employee after retirement or in Conditions such as disability or death.
• - It ensures that worker build long term savings during the employment, which be used for further securities
• - Provisions for employee Provident Fund are in chapter III of the code and from section 14 to 23

- Section 14 - appointment of officer of Central Board.

1. Central PF Commissioner appointed by central government act as CEO of central board and head EPFO

2. Central Provident Fund Chief Commissioner is general controller and supervision of central board.

3. Financial advisor and chief account officer appointed by Central Govt. And Assis Central Provisional Fund Commissioner Officer in financial matter

4. Centre board may appoint CPFC, deputy PF commissioner, Regional PF commissioner, Asst PF Commissioner. And other staff

5. Consultation with UPSC is required for Group A and B Post not required if appointment is temporary and less than one year.

- Section 15 – Schemes

1. Central government may create:

• a. PF scheme for employee or class of employees
• b. Pension scheme For retirement superannuation disabled widow children pension nominee pension.
• c. Insurance scheme employees deposit linked EBLI Provide life insurance.
• d. Other scheme for self employed worker and other class of workers.
• e. Modification of scheme government can add amend and modify.

2. Scheme may include matter listed in 5th schedule

3. Scheme may come into effect prospective or retrospectively.

- Section 16- funds

1. Central government may, for purpose of:

• a. Provident fund – Employee contribution 10% of wages.
  - Employer contribution equal to employer.
  - Employee may contribute more voluntarily.
• b. Pension fund.
  - From employers’ contribution maximum 8.3% of wages
  - contribution from exempted establishment
  - from central government.
• c. Insurance fund employer contributes up to 1% of wages. Additional amount for administrative expenses.

2. All PF, pension, insurance fund managed by Central Board

- Section 17 - Contribution in respect of employee and contracts

1. Employer can recover contribution paid for contract work from contractor by deduction or as debt.

2. Contractor can recover employee’s contribution only - from employees’ wages.

3. Contractor cannot recover employer contribution and administrative charges.

- Section 18 - recognition of fund under income tax act

Employee Provisional Fund is deemed as recognised PF under income tax act employee’s contribution is taxable under section 80 Employers contribution is not accessible. Interest earned on Provident Fund is tax free. If withdrawal of pf after five years, fully tax free

- Section 19 - priority of payment of contribution over other debt

Any amount of Provident Fund due creates charge on assets of establishment paid in priority under insolvency and bankruptcy code. 2016

- Section 20 - chapter does not apply to certain establishment

1. Not applicable to:

• a. small cooperative society with less than 50 workers and no power used.
• b. Government establishment
• c. Statutory bodies with similar benefit.
• d. Employee already covered under old laws.

2. Power of exemption: Central government may exempt any class of establishment based on financial condition and other circumstances.

- Section 21- employer maintaining PF account.

1. Employer with hundred or more employees can apply to the central government to maintain their own PF trust instead of depositing with EPFO.

Condition for grant:

• a. Combine application of employer and employee.
• b. Employer must have clean records

2. Duty of employ: - To maintain account, summit report, deposit contribution and allow inspection

3. Government may cancel permission if condition violated offence committed Must give a hearing opportunity

- Section 22 - Transfer of PF account on change of job.

Employee leave on one job and joins another accumulated PF transferred not withdrawn. UNA no - Help Seamless transfer.

- Section 23 - Appeal to tribunal.

1. Appeal allowed against: Determination of dues and damages imposed

2. Appeal filed in prescribe form, within time by paying fees.

3. Employer must deposit 25% of due amount before filing appeal.