Q.9. Discuss the salient features of Provident Scheme 1952. (AKTU. 2010 - 11)
Ans. Employees’ Provident Funds Scheme, 1952: -
The Employees Provident Funds Scheme, 1952 was introduced in November 1952 to provide old-age and post service financial support to the workers in general employed in Industrial & Commercial Sector establishments. The scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate. It made available to the employee concerned the accretions in the Provident Fund account with interest in lump sum on retirement or leaving the job.
There are some salient features of Provident Scheme 1952 -
1. Contribution of Employee: -
12% of the Pay of the employee
“Pay” includes basic wages# with dearness allowance, retaining allowance** (if any), cash value of food concession, and also on Leave Encashment.
2. Type of Advance from PF accumulations: -
1. Purchase dwelling site
2. Construction of a dwelling house
3. Completing construction of the house
4. Buy a dwelling house /Flat from Agency
5. Purchasing house/flat from a promoter
6. Additional Loan -alterations/improvements
7. Further housing withdrawal
8. Repayment housing loan
9. Withdrawal on 54 Years or within 1 year before actual retirement
10. Advance for illness of member and his family
11. For marriage, or post matriculation education
12. Property damaged by a nature calamity
13. Member physically handicapped
3. Nomination: -
a) An employee may be allowed to make a nomination conferring on one or more persons the right to receive the provident fund amount
b) If an employee nominates more than one person, he shall, in his nomination specify the amount or share payable to each of the nominees.
c) Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family
d) Any nomination made by an employee in favour of a person not belonging to his family shall be invalid.
e) If at the time of making a nomination the employee has no family, the nomination may be in favour of any person or persons
f) A nomination made by an employee may, at any time, be modified by filing Form no. 2
(4) Withdrawal from the Fund: -
a) On retirement from service.
b) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity.
c) Immediately before migration from India for permanent settlement abroad or for taking employment abroad
d) On termination of service in the case of mass or individual retrenchment
e) On termination of service under a voluntary scheme of retirement
f) After two months of resignation. In case of no employment
(5) Time for issue Annual Statement of accounts: -
The annual statement of accounts are issued to the employees by 30th September of the following year.
Error in the account slip if any, should be reported for correction within six months.
