FAQs - NGO sector/Charitable Trusts/Charitable Societies
LABOUR LAWS- PROVIDENT FUND
Which establishment are covered by the Act?
a. every factory engaged in any industry specified in Schedule I to the Act and employing 20 or more persons;b. every other establishment employing 20...Read More
If any establishment has departments or branches, are these departments or branches, to be
treated as separate establishments or parts of the same establishments?
Where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such...Read More
Is the Act applicable to charitable institutions?
The plea that an establishment is a charitable institution is not relevant to the determination of the question of the applicability of the Act....Read More
Who is eligible to become a member of the Fund?
Every employee employed in or in connection with the work of a factory or other establishment covered by the scheme other than an excluded employ...Read More
Is a trainee an "employee" under the Act?
The provisions of Section 2(f)(ii) of the Act and Para 2(f)(iv) of the Scheme framed under the Act are to be kept in mind while considering if a ...Read More
What is the contribution payable by the employer and the employee under the Scheme?
The contribution payable by the employer under the Scheme is 12 percent of the wages of an employee. The contribution payable by the employe...Read More
On what pay/allowances the P. F. Contributions is to be deducted?
The P. F. Contribution is to be deducted - 1. On basic wages2. dearness allowance and the retaining allowance if any. {Section 6}...Read More
What is meant by "excluded employee"?
"Excluded employee" means - i.an employee who, having been a member of the Fund, has withdrawn the full amount of his contribution in the Fund (...Read More
Are the persons employed by or through a contractor covered under the Scheme?
The persons employed by or through a contractor are included in the definition of "employee" under the Employees' Provident Funds Act, 1952,...Read More
Who is entitled to receive the accumulations in the Provident Fund account of a deceased member?
On the death of a member the amount standing to his credit in the Fund is payable to his nominee or nominees. If there is no nominee, such amount...Read More
What is the provision of the Scheme in the matter of nomination by a member?
Each member has to make a nomination to receive the amount standing to his credit in the Fund in the event of his death. If he has a family,...Read More
If an employee has a "family", can he make nomination in favour of brother?
No nomination can be made under the E. F. P. Scheme in favour of a person who is not a member of the "family". The word "family" is defined ...Read More
What is the provision of the Scheme in the matter of transfer of members?
If a member of the Fund goes from one establishment to another or from one region to another, the balance of his Provident Fund is transferr...Read More
Is the employer required to pay administrative charges under the scheme?
The employer is required to pay administrative charges at the rate of 1.10 percent of the pay payable to the employees (W.E.F 1st September, 2014...Read More
Is any interest payable on the Provident Fund accumulations of a member?
Compound interest, at a rate determined by the Central Government from time to time, is paid on the amount standing to the credit of a membe...Read More
Is it permissible for any member to contribute at a rate higher than the rate or 12 percent?
A member, if he so desires, may contribute an amount exceeding 12 percent as the case may be but the employer shall not be under an obligati...Read More
Is it necessary to deduct provident fund contribution from arrears of wages paid to an employee as a result of an award revising his scale of pay?
Arrears are emoluments earned by the employee while on duty and provident fund contributions have to be deducted from such wages....Read More
Have the employee and the employer to pay contribution on the entire pay of the employee?
Where the monthly pay of an employee exceeds six thousand five hundred rupees (W.E.F. 1st September, 2014- Fifteen Thousand Rupees)...Read More
Is the employer liable to pay the contribution when he is not in a position to pay wages to the
employees?
The employer is liable to pay the employer's contribution as well as the employee's contribution irrespective of the fact that wages have been pa...Read More
What are the powers of the Inspectors appointed under the Act?
An Inspector appointed under the Act has power- to require any employer or contractor to furnish any information required by him; to enter an...Read More
Can a nominee of a deceased employee claim an absolute right in respect of the amount of
provident fund of the deceased employer?
The nominee cannot claim an absolute right to the amount excluding the right of the heirs. An heir of the deceased employee can always initiate l...Read More
What does it mean when section 10(2) of the Act says that the amount standing to the credit of a member in the Fund at the time of his death and payable to his nominee shall vest in the nominee?
Vesting of the amount in the nominee is for limited purpose of receiving the amount from the employer and handing over the same to the heirs enti...Read More
Can the amount standing to the credit of any member in the Fund be assigned, charged or
attached?
The amount standing to the credit of a member in the Fund cannot be assigned, charged or attached under any decree or order of any Court. Similar...Read More
Can Recovery Officer impose interest on the amount mentioned in the Recovery Certificate?
The position of a Recovery Officer in exactly that of an executing court. He can recover only the amount specified in the certificate. If th...Read More
What are the various modes in which the Central Regional Provident Fund Commissioner can
recover arrears of any amount due from any employer under section 8 of the Act?
The Central Regional Provident Fund Commissioner can recover such arrears- 1. by issuing a certificate to the Recovery Officer to recover the ar...Read More
In what manner can the employer recover the moneys paid by him for or on behalf of a contractor?
If the employer pays any contribution or administrative charges for or on behalf of a contractor, he can recover the same from the contractor eit...Read More
Is is permissible to exempt any establishment from the operation of the Act because of
their financial position?
The Act permits the Central Government, subject to specified conditions, to exempt any class of establishments from the operation of the Act, if ...Read More
Does the Act apply to a poly clinic?
A poly clinic is covered by the entry in respect of "establishments of hospital" as well as the entry in respect of "establishment of Medical Pra...Read More