What is the benefits of PF for the labour in Nashik?
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, is a central legislation, which provides the framework for introducing schemes for provident funds, pension funds and deposit-linked insurance funds for employees working in factories and other establishments.
The Act applies to all factories in classes of industry specified in schedule I where 20 or more persons are employed.
Of the employees in these establishments, only those getting wages of Rs 15,000 or less have the obligation to subscribe to the provident fund. Those with higher monthly earnings may also join voluntarily with the employer’s agreement. There is also a provision in the Act for voluntary coverage of establishments by the Employees Provident Fund Scheme.
Both the employers and employees are required to contribute to the Fund @12 per cent of the wages each, which has been reduced to 10 per cent for establishments manufacturing brick, beedi, jute, coir and guar gum. For purposes of calculation, the basic salary and dearness allowance are deemed to constitute wages. The subscribers are entitled to withdraw the full amount in their account with interest at the end of service, but they can also make partial withdrawals earlier for meeting obligations such as education or marriage of children.
The break-up of EPF is the following:
a. It is collected through the salary of an employee
b. 12% is the contribution of the employer and.
c. 12% is the contribution of employee i.e. 12% of basic salary
d. Total of 24% of the basic salary is contributed every mon