Contents

Page
Topic
No

Introduction, Main Functions, Key Schemes 3

Boards under Act, Central Board 5

Non Applicability of Act 7

Appointment of Officers 8

Schemes Under EPF 10

Determination of Moneys due from Employers 12

Mode of recovery of Moneys due from Employers 15

Other Modes of Recovery 18

Priority of Payment of Contributions over other Debts 21

Penalties 24

Power to Exempt 27

Power to make Rules 31

EPF Form 33

UAN- Universal Account Number 34

Online EPF Submission 36

How to Generate and Activate UAN 38

Introduction
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The Employees’ Provident Funds, 1952 is a beneficial legislation enacted for the betterment
of the future of industrial worker:

1. On his retirement.
2. For his dependents in case of death of employment.

This Act is enacted as a social security measure which falls under the ground of “retirement
benefit”, the object of this Act is to inculcate, non withdrawable financial benefit, the sum is
payable normally on retirement or on the death of the employee. Administration of the
scheme given under this act is done by the central board, state board, and regional
committee, a chief executive committee appointed and constituted by the central
government.

Main Functions of EPFO

 Provident Fund Management: Collects and manages the monthly contributions

made by employees and employers towards the Provident Fund.
 Pension Scheme: Administers the Employees’ Pension Scheme (EPS), 1995, which
provides pension benefits upon retirement or to the family in the case of the
employee’s death.
 Insurance Scheme: Manages the Employees’ Deposit Linked Insurance Scheme
(EDLI), 1976, which offers life insurance coverage to the beneficiaries of members.
 Enforcement of Compliance: Ensures that all eligible employers are registered under
the Act and are making due contributions towards the schemes.
 Member Services: Provides various services to members, including the facility to
view passbooks, update KYC details, transfer accounts, and withdraw funds.

Key Schemes Administered by EPFO

 Employees' Provident Fund (EPF):

o Purpose: A mandatory saving scheme for employees where both the
employee and employer contribute 12% of the employee’s basic salary
towards the EPF.
o Withdrawal: Permissible under certain conditions, such as retirement,
unemployment, or meeting specified financial needs (like housing, education,
and medical emergencies).
 Employees’ Pension Scheme (EPS):
o Purpose: A pension scheme designed to provide monthly pensions to
employees upon retirement, permanent disability, or to their families in the
event of death.
o Eligibility: Employees become eligible for the pension benefit after
completing 10 years of service.

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 o Contribution: Of the total 12% employer contribution, 8.33% goes towards
the pension fund.
 Employees’ Deposit Linked Insurance Scheme (EDLI):
o Purpose: Provides a lump-sum insurance payout to the family of a deceased
employee.
o Coverage: Linked with the EPF scheme and offers life insurance benefits to
EPF subscribers.
o Benefit Amount: The maximum benefit amount is up to ₹7,00,000, subject to
various conditions.

4. Eligibility and Coverage

 Eligibility:
o Employees earning up to ₹15,000 per month are mandatorily covered under
the EPF Act. However, employees earning above this threshold can
voluntarily opt for EPF.
 Coverage:
o Applicable to establishments with 20 or more employees. Certain sectors
(like cooperatives and voluntary organizations) are covered under specific
conditions.

Boards under the Act

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Central board: Section 5

Central board – Central board is created by official gazette notification given by the Central
government.
Functions

1. Section 6 and Section 6C discussions how the central board should use their fund
vested on them.
2. Duty of the central board is to send an annual report to the Central government, of
its work and activities.
3. The central government will submit a report to the comptroller and Auditor General
of India. Comments of Central board is laid down before parliament.

Constitution of the following a person as a member:

 Chairman and a vice-chairman appointed by the central government

 The central Provident fund commissioner, ex-official
 Among Central government officials (not more than five-person)
 A representative of states (not more than 50)
 Representing the employer of the establishment (10 people)
 Representing the employee of the establishment (10 people)

Executive committee: Section 5AA

State Board: section 5 B

The central government, after consulting with any of the states constitute the state board in
the following state, as provided for in the scheme. Constitution of the state board is done by
the notification in the official gazette. Central government from time to time prescribes the
duties to be performed by the state board and the powers exercised by the state
government. The following scheme will provide the terms condition subject to which a
member of state board is appointed, time place and procedure for conducting meetings etc.
Every board of trustee constituted under this section is a Body Corporate, being a body
corporate, it has perpetual succession, a common seal and right to sue or get sued in its
name.

Regional committee

Until state board is constituted, the Central Government may set up Regional Committee,
which is under the control of Central Government, it works under the advice of the
following person:

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 1. Central board, when matters referred to it from time to time.
2. All the matter regarding “administration of the Scheme”, such as the progress of
recovery of PF, contribution and other charges, speedy disposal of prosecution,
settlement of claims and sanctions of advances.

Appointment of central fund commissioner

 The central government shall appoint Central provident fund commissioner, deputy
provident commissioner and regional provident fund commissioner by discharging
his duty they will assist central provident fund commissioner.
 Chief executive officer is appointed by the central provident fund commissioner.
 Central Board will appoint other officers, employees for the efficient administration
of various schemes.

EPF Features

The employer is under a statutory obligation to deduct a specified percentage of the

contribution from the employee’s salary for provident fund. The employer should also
contribute such percentage for provident fund. An employee who gets more than 15,000 is
eligible for getting the provident fund.

This Act contains nearly 20 sections and four schedules. Section 7E, F, G, H, M, N is omitted,
section 20 is repealed.

Applicability of the Act – section 1 of this Act deals with the application of the Act. This is
applicable to “every factory engaged in any industry specified in schedule I”.

1. Every establishment in which 20 or more are employed.

2. Any establishment notified by the central government.
3. Any class of such establishment employing 20 or more. This Act is applicable to
home workers held in the case Mangalore Gandhi Beedi workers V. U.O.I and
P.M.Patel V. U.O.I.
4. This Act is applied when the establishment satisfies the two tests, namely:

 Whether there is an establishment is a ‘factory’?

 Whether 20 or more person is employed which is held in the case Andhra University
V. Regional Provident Fund Commissioner.

Some workers will not come under this Act. They are Casual, or temporary workers can’t be
considered as employee held in the case Bikar cold storage co. Ltd. V. Regional PF
Commissioner.

Non-applicability of the Act

The Act does not apply to the following things. Any establishment registered under the co-
operative society Act, 1912. Any state-related co-operative society employed less than 50

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people and working without the aid of power. From the date on which the establishment is
set up, where the establishment as:

 Only 50 or more persons, after the expiry of 3 years.

 Only 20 or more, but less than 50 people before the expiry of 5 years, which is held
in the case V.K. Bhatt V. A.C.B & T. Mfg. Co.

Central Government also has the power to exempt any class of establishment, on such
condition mentioned in the notification:

 On the ground of financial position.

 Other circumstances of the case which is held in the case Mohammed Ali V. U.O.I.

Eligibility For getting EPF- Any person is eligible, who is employed:

 For work of the establishment.

 Through contractor.
 Connection with work of establishment is eligible for the benefit of the Act.

This Act was constitutionally challenged on the ground that it is:

 Discriminative in nature.
 Article 14 is violated because it is applied only to a particular class of industry, but
the Supreme Court said that it doesn’t violate article 14, it is certain, classification of
a certain class of industry falls in reasonable classification which is valid.

5D. Appointment of officers

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(1) The Central Government shall appoint a Central Provident Fund Commissioner who shall
be the chief executive officer of the Central Board and shall be subject to the general control
and superintendence of that Board.

(2) The Central Government may also appoint 32[a Financial Adviser and Chief Accounts
Officer] to assist the Central Provident Fund Commissioner in the discharge of his duties.

(3) The Central Board may appoint, 26[subject to the maximum scale of pay, as may be
specified in the Scheme, as many Additional Central Provident Fund Commissioners, Deputy
Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant
Provident Fund Commissioners and such other officers and employees as it may consider
necessary for the efficient administration of the Scheme, the 33[Pension] Scheme and the
Insurance Scheme.

(4) No appointment to 34[the post of the Central Provident Fund Commissioner or a Financial
Advisor and Chief Accounts Officer or any other post under the Central Board carrying a
scale of pay equivalent to the scale of pay of any Group 'A' or Group 'B' post under the
Central Government] shall be made except after consultation with the Union Public Service
Commission:

PROVIDED that no such consultation shall be necessary in regard to any such appointment

(a) for a period not exceeding one year, or

(b) if the person to be appointed is at the time of his appointment

(i) a member of the Indian Administrative Service, or

(ii) in the service of the Central Government or a State Government or the Central Board in a
[Group 'A' or Group 'B' post.]

(5) A State Board may, with the approval of the State Government concerned, appoint such
staff as it may consider necessary.

(6) The method of recruitment, salary and allowances, discipline and other conditions of
service of the Central Provident Fund Commissioner, 36[and the Financial Adviser and Chief
Accounts Officer] shall be such as may be specified by the Central Government and such
salary and allowances shall be paid out of the Fund.

(7)(a) The method of recruitment, salary and allowances, discipline and other conditions of
service of the Additional Central Provident Fund Commissioner, Deputy Provident Fund
Commissioner, Regional Provident Fund Commissioner, Assistant Provident Fund
Commissioner and other officers and employees of the Central Board shall be such as may
be specified by the Central Board in accordance with the rules and orders applicable to the
officers and employees of the Central Government drawing corresponding scales of pay:

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PROVIDED that where the Central Board is of the opinion that it is necessary to make a
departure from the said rules or orders in respect of any of the matters aforesaid, it shall
obtain the prior approval of the Central Government.

(b) In determining the corresponding scales of pay of officers and employees under cl.(a),
the Central Board shall have regard to the educational qualifications, method of
recruitment, duties and responsibilities of such officers and employees under the Central
Government and in case of any doubt, the Central Board shall refer the matter to the
Central Government whose decision thereon shall be final.]

(8) The method of recruitment, salary and allowances, discipline and other conditions of
service37 of officers and employees of State Board shall be such as may be specified by that
Board, with the approval of the State Government concerned.

6. Contributions and matters which may be provided for in the Scheme

The contribution which shall be paid by the employer to the Fund shall be [ten per cent] of
the basic wages, [dearness allowance and retaining allowance (if any)], for the time being
payable to each of the employees [(whether employed by him directly or by or through a
contractor)] and the employees' contribution shall be equal to the contribution payable by
the employer in respect of him and may, [if any employee so desires be an amount not
exceeding [ten per cent] of his basic wages, dearness allowance and retaining allowance (if
any), subject to the condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under this section]:

[PROVIDED that in its application to any establishment or class of establishments which the
Central Government, after making such inquiry as it deems fit, may, by notification in the
Official Gazette specify, this section shall be subject to the modification that for the words
[ten per cent], at both the places where they occur, the words [twelve per cent] shall be
substituted]:

[PROVIDED FURTHER that] where the amount of any contribution payable under this Act
involves a fraction of a rupee, the Scheme may provide for the rounding off of such fraction
to the nearest rupee, half of a rupee or quarter of a rupee.

Explanation [11: For the purposes of this [section], dearness allowance shall be deemed to
include also the cash value of any food concession allowed to the employee.

[Explanation 2: For the purposes of this [section], "retaining allowance" means an allowance
payable for the time being to an employee of any factory or other establishment during any
period in which the establishment is not working, for retaining his services.]

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Schemes under EPF
6A. Employees' Pension Scheme

(1) The Central Government may, by notification in the Official Gazette, frame a scheme to
be called the Employees' Pension Scheme for the purpose of providing for:

(a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and

(b) widow or widower's pension, children pension or orphan pension payable to the
beneficiaries of such employees.

(2) Notwithstanding anything contained in section 6, there shall be established, as soon as

may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid,
from time to time, in respect of every employee who is a member of the Pension Scheme:

(a) such sums from the employer's contribution under section 6, not exceeding eight and
one-third per cent of the basic wages, dearness allowance and retaining allowance, if any, of
the concerned employees, as may be specified in the Pension Scheme;

(b) such sums as are payable by the employers of exempted establishments under sub-
section (6) of section 17;

(c) the net assets of the Employees' Family Pension Fund as on the date of the
establishment of the Pension Fund;

(d) such sums as the Central Government may, after due appropriation by Parliament by law
in this behalf, specify.

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter
referred to as the ceased scheme) shall cease to operate and all assets of the ceased
scheme shall vest in and shall stand transferred to, and all liabilities under the ceased
scheme shall be enforceable against, the Pension Fund and the beneficiaries under the
ceased scheme shall be entitled to draw the benefits, not less than the benefits, they were
entitled to under the ceased scheme, from the Pension Fund.

(4) The Pension Fund shall vest in and be administered by the Central Board in such manner
as may be specified in the Pension Scheme.

(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of
the matters specified in Schedule III.

(6) The Pension Scheme may provide that all or any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in that behalf in that
Scheme.

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(7) A Pension Scheme, framed under sub-section (1) shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the scheme or both Houses
agree that the scheme should not be made, the scheme shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that scheme.

6C. Employees' Deposit Linked Insurance Scheme

(1) The Central Government may, by notification in the Official Gazette, frame a Scheme to
be called the Employees' Deposit-linked Insurance Scheme for the purpose of providing life
insurance benefits to the employees of any establishment or class of establishments to
which this Act applies.

(2) There shall be established, as soon as may be after the framing of the Insurance Scheme,
a Deposit-linked Insurance Fund into which shall be paid by the employer from time to time
in respect of every such employee in relation to whom he is the employer, such amount, not
being more than one per cent of the aggregate of the basic wages, dearness allowance and
retaining allowance (if any) for the time being payable in relation to such employee as the
Central Government may, by notification in the Official Gazette, specify.

Explanation: For the purposes of this sub-section, the expressions "dearness allowance" and
"retaining allowance" have the same meanings as in section 6.

(4)(a) The employer shall pay in to the Insurance Fund such further sums of money, not
exceeding one-fourth of the contribution which he is required to make under sub-section
(2), as the Central Government may, from time to time, determine to meet all the expenses
in connection with administration of the Insurance Scheme other than the expenses
towards the cost of any benefits provided by or under that Scheme.

(5) The Insurance Fund shall vest in the Central Board and be administered by it in such
manner as may be specified in the Insurance Scheme.

(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.

(7) The Insurance Scheme may provide that any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in this behalf in that
Scheme.]

6D. Laying of Schemes before Parliament

Every Scheme framed under section 5, section 6A and Section 6C shall be laid, as soon as
may be after it is framed, before each House of Parliament, while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more successive

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sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any notification in the Scheme,
or both Houses agree that the scheme should not be framed, the Scheme shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to the validity of
anything previously done under the Scheme.]

7. Modification of Scheme

(1) The Central Government may, by notification in the Official Gazette, add to, [amend or
vary, either prospectively or retrospectively, the Scheme, the [Pension] Scheme or the
Insurance Scheme, as the case may be.]

[(2) Every notification issued under sub-section (1) shall be laid, as soon as may be after it is
issued, before each House of Parliament while it is in session, for a total period of thirty
days, which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the notification, or both houses
agree that the notification should not be issued, the notification shall thereafter have effect
only in such modified form or be of no effect, as the case may be ; so however, that any
such modification or annulment shall be without prejudice to the validity of anything
previously done under that notification.]

7A. Determination of moneys due from employers

(1) The Central Provident Fund Commissioner, any Additional Central Provident Fund
Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund
Commissioner or any Assistant Provident Fund Commissioner may, by order,

(a) in a case where a dispute arises regarding the applicability of this Act to an
establishment, decide such dispute; and

(b) determine the amount due from any employer under any provision of this Act, the
Scheme or the 33[Pension] Scheme or the Insurance Scheme, as the case may be, and for
any of the aforesaid purposes may conduct such inquiry as he may deem necessary.]

(2) The officer conducting the inquiry under sub-section (1) shall, for the purposes of such
inquiry, have the same powers as are vested in a court under the Code of Civil Procedure,
1908, for trying a suit in respect of the following matters, namely:

(a) enforcing the attendance of any person or examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavit;

(d) issuing commissions for the examination of witnesses;

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and any such inquiry shall be deemed to be judicial proceeding within the meaning of
sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.

(3) No order shall be made under sub-section (1), unless [the employer concerned] is given
a reasonable opportunity of representing his case.

(3A) Where the employer, employee or any other person required to attend the inquiry
under sub-section (1) fails to attend such inquiry without assigning any valid reason or fails
to produce any document or to file any report or return when called upon to do so, the
officer conducting the inquiry may decide the applicability of the Act or determine the
amount due from any employer, as the case may be, on the basis of the evidence adduced
during such enquiry and other documents available on record.]

(4) Where an order under sub-section (1) is passed against an employer ex parte, he may,
within three months from the date of communication of such order, apply to the officer for
setting aside such order and if he satisfies the officer that the show cause notice was not
duly served or that he was prevented by any sufficient cause from appearing when the
inquiry was held, the officer shall make an order setting aside his earlier order and shall
appoint a date for proceeding with the inquiry:

PROVIDED that no such order shall be set aside merely on the ground that there has been
an irregularity in the service of the show cause notice if the officer is satisfied that the
employer had notice of the date of hearing and had sufficient time to appear before the
officer.

Explanation: Where an appeal has been preferred under this Act against an order passed ex
parte and such appeal has been disposed of otherwise than on the ground that the
appellant has withdrawn the appeal, no application shall lie under this sub-section for
setting aside the ex-pert order.

(5) No order passed under this section shall be set aside on any application under sub-
section (4) unless notice thereof has been served on the opposite party.]

7B. Review of orders passed under section 7A

(1) Any person aggrieved by an order made under sub-section (1) of section 7A, but from
which no appeal has been preferred under this Act, and who, from the discovery of new and
important matter or evidence which, after the exercise of due diligence was not within his
knowledge or could not be produced by him at the time when the order was made, or on
account of some mistake or error apparent on the face of the record or for any other
sufficient reason, desires to obtain for a review of such order may apply for a review of that
order to the officer who passed the order:

PROVIDED that such officer may also on his own motion review his order if he is satisfied
that it is necessary so to do on any such ground.

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(2) Every application for review under sub-section (1) shall be filed in such form and manner
and within such time as may be specified in the Scheme.

(3) Where it appears to the officer receiving an application for review that there is no
sufficient ground for review, he shall reject the application.

(4) Where the officer is of the opinion that the application for review should be granted, he
shall grant the same:

PROVIDED that,

(a) no such application shall be granted without previous notice to all the parties before him
to enable them to appear and be heard in support of the order in respect of which a review
is applied for, and

(b) no such application shall be granted on the ground of discovery of new matter or
evidence which the applicant alleges was not within his knowledge or could not be
produced by him when the order was made, without proof of such allegation.

(5) No appeal shall lie against the order of the officer rejecting an application for review, but
an appeal under this Act shall lie against an order passed under review as if the order passed
under review were the original order passed by him under section 7A.

7C. Determination of escaped amount

Where an order determining the amount due from an employer under section 7A or section
7B has been passed and if the officer who passed the order

(a) has reason to believe that by reason of the omission or failure on the part of the
employer to make any document or report available, or to disclose, fully and truly, all
material facts necessary for determining the correct amount due from the employer, any
amount so due from such employer for any period has escaped his notice;

(b) has, in consequence of information in his possession, reason to believe that any amount
to be determined under section 7A or section 7B has escaped from his determination for
any period notwithstanding that there has been no omission or failure as mentioned in cl.
(a) on the part of the employer, he may, within a period of five years from the date of
communication of the order passed under section 7A or section 7B, re-open the case and
pass appropriate orders re-determining the amount due from the employer in accordance
with the provisions of this Act:

PROVIDED that no order re-determining the amount due from the employer shall be passed
under this section unless the employer is given a reasonable opportunity of representing his
case.

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7Q. Interest payable by the employer

The employer shall be liable to pay simple interest at the rate of twelve per cent per annum
or at such higher rate as may be specified in the Scheme on any amount due from him
under this Act from the date on which the amount has become so due till the date of its
actual payment:

PROVIDED that higher rate of interest specified in the Scheme shall not exceed the lending
rate of interest charged by any scheduled bank.]

8. Mode of recovery of moneys due from employers

Any amount due:

(a) from the employer in relation to [an establishment] to which any [Scheme or the
Insurance Scheme] applies in respect of any contribution payable to [the Fund or, as the
case may be, the Insurance Fund], damages recoverable under section 14B, accumulations
required to be transferred under sub-section (2) of section 15 [or under sub-section (5) of
section 17] or any charges payable by him under any other provision of this Act or of any
provision of the [Scheme or the Insurance Scheme] ; or

(b) from the employer in relation to an exempted [establishment] in respect of any damages
recoverable under section 14B or any charges payable by him to the appropriate
Government under any provision of this Actor under any of the conditions specified 60[under
section 17 or in respect of the contribution payable by him towards the [Pension] [Scheme
or the Insurance Scheme] under the said section 17], may, if the amount is in arrears, [be
recovered [in the manner specified in sections 8B to 8G.]

8A. Recovery of moneys by employers and contractors

(1) [The amount of contribution (that is to say, the employer's contribution as well as the
employee's contribution in pursuance of any Scheme and the employer's contribution in
pursuance of the Insurance Scheme)]; and any charges for meeting the cost of
administering the Fund paid or payable by an employer in respect of an employee employed
by or through a contractor may be recovered by such employer from the contractor, either
by deduction from any amount payable to the contractor under any contract or as a debt
payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in
respect of any employee employed by or through him, may recover from such employee the
employee's contribution [under any Scheme] by deduction from the basic wages, dearness
allowance and retaining allowance (if any) payable to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct
the employer's contribution or the charges referred to in sub-section (1) from the basic
wages, dearness allowance, and retaining allowance (if any) payable to an employee

14 | P a g e
employed by or through him or otherwise to recover such contribution or charges from such
employee.

Explanation: In this section, the expression "dearness allowance" and "retaining allowance"
shall have the same meanings as in section 6.]

8B. Issue of certificate to the Recovery Officer

(1) Where any amount is in arrears under section 8, the authorized officer may issue, to the
Recovery Officer, a certificate under his signature specifying the amount of arrears and the
Recovery Officer, on receipt of such certificate, shall proceed to recover the amount
specified therein from the establishment or, as the case may be, the employer by one or
more of the modes mentioned below:

(a) attachment and sale of the movable or immovable property of the establishment or, as
the case may be, the employer;

(b) arrest of the employer and his detention in prison;

(c) appointing a receiver for the management of the movable or immovable properties of
the establishment or, as the case may be, the employer:

PROVIDED that the attachment and sale of any property under this section shall first be
effected against the properties of the establishment and where such attachment and sale is
insufficient for recovering the whole of the amount of arrears specified in the certificate, the
Recovery Officer may take such proceedings against the property of the employer for
recovery of the whole or any part of such arrears.

(2) The authorized officer may issue a certificate under sub-section (1), not withstanding
that proceedings for recovery of the arrears by any other mode have been taken.

8C. Recovery Officer to whom certificate is to be forwarded

(1) The authorized officer may forward the certificate referred to in section 8B to the
Recovery Officer within whose jurisdiction the employer

(a) carries on his business or profession or within whose jurisdiction the principal place of
his establishment

is situate; or

(b) resides or any movable or immovable property of the establishment or the employer is
situate.

(2) Where an establishment or the employer has property within the jurisdiction of more
than one Recovery Officers and the Recovery Officer to whom a certificate is sent by the
authorized officer

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(a) is not able to recover to the entire amount by the sale of the property, movable or
immovable, within his jurisdiction; or

(b) is of the opinion that, for the purpose of expediting or securing the recovery of the
whole or any part of the amount, it is necessary so to do, he may send the certificate or,
where only a part of the amount is to be recovered, a copy of the certificate certified in the
prescribed manner and specifying the amount to be recovered to the Recovery Officer
within whose jurisdiction the establishment or the employer has property or the employer
resides, and thereupon that Recovery Officer shall also proceed to recover the amount due
under this section as if the certificate or the copy thereof had been the certificate sent to
him by the authorized officer.

8D. Validity of certificate and amendment thereof

(1) When the authorized officer issues a certificate to Recovery Officer under section 8B, it
shall not be open to the employer to dispute before the Recovery Officer the correctness of
the amount, and no objection to the certificate on any other ground shall also be
entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorized officer
shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in
the certificate by sending an intimation to the Recovery Officer.

(3) The authorized officer shall intimate to the Recovery Officer any order withdrawing or
canceling a certificate or any correction made by him under sub-section (2) or any
amendment made under sub-section (4) of section 8E.

8E. Stay of proceedings under certificate and amendment or withdrawal

thereof

(1) Notwithstanding that a certificate has been issued to the Recovery Officer for the
recovery of any amount, the authorized officer may grant time for the payment of the
amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of
the time so granted.

(2) Where a certificate for the recovery of amount has been issued, the authorized officer
shall keep the Recovery Officer informed of any amount paid or time granted for payment,
subsequent to the issue of such certificate.

(3) Where the order giving rise to a demand of amount for which a certificate for recovery
has been issued has been modified in appeal or other proceeding under this Act, and, as a
consequence thereof, the demand is reduced but the order is the subject-matter of a
further proceeding under this Act, the authorized officer shall stay the recovery of such part
of the amount of the certificate as pertains to the said reduction for the period for which
the appeal or other proceeding remains pending.

16 | P a g e
(4) Where a certificate for the recovery of amount has been issued and subsequently the
amount of the outstanding demand is reduced as a result of an appeal or other proceeding
under this Act, the authorized officer shall, when the order which was the subject-matter of
such appeal or other proceeding has become final and conclusive, amend the certificate or
withdraw it, as the case may be.

8F. Other modes of recovery

(1) Notwithstanding the issue of a certificate to the Recovery Officer under section 8B, the
Central Provident Fund Commissioner or any other officer authorized by the Central Board
may recover the amount by any one or more of the modes provided in this section.

(2) If any amount is due from any person to any employer who is in arrears, the Central
Provident Fund Commissioner or any other officer authorized by the Central Board in this
behalf may require such person to deduct from the said amount the arrears due from such
employer under this Act, and such person shall comply with any such requisition and shall
pay the sum so deducted to the credit of the Central Provident Fund Commissioner or the
officer so authorized, as the case may be:

PROVIDED that nothing in this sub-section shall apply to any part of the amount exempt
from attachment in execution of a decree of a civil court under section 60 of the Code of
Civil Procedure, 1908.

(3) (i) The Central Provident Fund Commissioner or any other officer authorized by the
Central Board in this behalf may, at any time or from time to time, by notice in writing,
require any person from whom money is due or may become due to the employer or, as the
case may be, the establishment or any person who holds or may subsequently hold money
for or on account of the employer or as the case may be, the establishment, to pay to the
Central Provident Fund Commissioner either forthwith upon the money becoming due or
being held or at or within the time specified in the notice (not being before the money
becomes due or is held) so much of the money as is sufficient to pay the amount due from
the employer in respect of arrears or the whole of the money when it is equal to or less than
that amount.

(ii) A notice under this sub-section may be issued to any person who holds or may
subsequently hold any money for or on account of the employer jointly with any other
person and for the purposes of this sub-section, the shares of the joint-holders in such
account shall be presumed, until the contrary is proved, to be equal.

(iii) A copy of the notice shall be forwarded to the employer at his last address known to the
Central Provident Fund Commissioner or, as the case may be, the officer so authorized and
in the case of a joint account to all the joint-holders at their last addresses known to the
Central Provident Fund Commissioner or the officer so authorized.

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued
under this sub-section shall be bound to comply with such notice, and, in particular, where
any such notice is issued to a post office, bank or an insurer, it shall not be necessary for any

17 | P a g e
pass book, deposit receipt, policy or any other document to be produced for the purpose of
any entry, endorsement or the like being made before payment is made notwithstanding
any rule, practice or requirement to the contrary.

(v) Any claim respecting any property in relation to which a notice under this sub-section has
been issued arising after the date of the notice shall be void as against any demand
contained in the notice.

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a
statement on oath that the sum demanded or any part thereof is not due to the employer
or that he does not hold any money for or on account of the employer, then, nothing
contained in this sub-section shall be deemed to require such person to pay any such sum or
part thereof, as the case may be, but if it is discovered that such statement was false in any
material particular, such person shall be personally liable to the Central Provident Fund
Commissioner or the officer so authorized to the extent of his own liability to the employer
on the date of the notice, or to the extent of the employer's liability for any sum due under
this Act, whichever is less.

(vii) The Central Provident Fund Commissioner or the officer so authorized may, at any time
or from time to time, amend or revoke any notice issued under this sub-section or extend
the time for making any payment in pursuance of such notice.

(viii) The Central Provident Fund Commissioner or the officer so authorized shall grant a
receipt for any amount paid in compliance with a notice issued under this sub-section, and
the person so paying shall be fully discharged from his liability to the employer to the extent
of the amount so paid.

(ix) Any person discharging any liability to the employer after the receipt of a notice under
this sub-section shall be personally liable to the Central Provident Fund Commissioner or the
officer so authorized to the extent of his own liability to the employer so discharged or to
the extent of the employer's liability for any sum due under this Act, whichever is less.

(x) If the person to whom a notice under this sub-section is sent fails to make payment in
pursuance thereof to the Central Provident Fund Commissioner or the officer so authorized
he shall be deemed to be an employer in default in respect of the amount specified in the
notice and further proceedings may be taken against him for the realization of the amount
as if it were an arrear due from him, in the manner provided in sections 8B to 8E and the
notice shall have the same effect as an attachment of a debt by the Recovery Officer in
exercise of his powers under section 8B.

(4) The Central Provident Fund Commissioner or the officer authorized by the Central Board
in this behalf may apply to the court in whose custody there is money belonging to the
employer for payment to him of the entire amount of such money, or if it is more than the
amount due, an amount sufficient to discharge the amount due.

(5) The Central Provident Fund Commissioner or any officer not below the rank of Assistant
Provident Fund Commissioner may, if so authorized by the Central Government by general

18 | P a g e
or special order, recover any arrears of amount due from an employer or, as the case may
be, from the establishment by distraint and sale of his or its movable property in the
manner laid down in the Third Schedule to the Income Tax Act, 1961 (43 of 1961).

8G. Application of certain provisions of Income Tax Act

The provisions of the Second and Third Schedules to the Income Tax Act, 1961 (43 of 1961),
and the Income Tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall
apply with necessary modifications as if the said provisions and the rules referred to the
arrears of the amount mentioned in section 8 of this Act instead of to the Income Tax:

PROVIDED that any reference in the said provisions and the rules to the "assessee" shall be
construed as a reference to an employer as defined in this Act.

9. Fund to be recognized under Act 11 of 1922

For the purposes of the Indian Income Tax Act, 1922, the Fund shall be deemed to be a
recognized provident fund within the meaning of Chapter IX-A of that Act:

[PROVIDED that nothing contained in the said Chapter shall operate to render ineffective
any provision of the Scheme (under which the Fund is established) which is repugnant to
any of the provisions of that Chapter or of the rules made thereunder.]]

10. Protection against attachment

(1) The amount standing to the credit of any member in the Fund [or of any exempted
employee in a provident fund] shall not in any way be capable of being assigned or charged
and shall not be liable to attachment under any decree or order of any Court in respect of
any debt or liability incurred by the member [or the exempted employee], and neither the
official assignee appointed under the Presidency Towns Insolvency Act, 1909, nor any
receiver appointed under the Provincial Insolvency Act, 1920, shall be entitled to, or have
any claim on, any such amount.

(2) Any amount standing to the credit of a member in the Fund or of an exempted employee
in a provident fund at the time of his death and payable to his nominee under the Scheme
or the rules of the Provident Fund shall, subject to any deduction authorized by the said
Scheme or rules, vest in the nominee and shall be free from any debt or other liability
incurred by the deceased or the nominee before the death of the member or of the
exempted employee [and shall also not be liable to attachment under any decree or order
of any Court.]

(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in
relation to the family pension or any other amount payable under the 33[Pension] Scheme
11[and also in relation to any amount payable under the Insurance Scheme] as they apply in
relation to any amount payable out of the Fund.]

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11. Priority of payment of contributions over other debts

(1) Where any employer is adjudicated in solvent or, being a company, an order for winding
up is made, the amount due

(a) from the employer in relation to [an establishment] to which any [Scheme or the
insurance Scheme] applies in respect of any contribution payable to the Fund [or, as the
case may be, the Insurance Fund], damages recoverable under section 14B, accumulations
required to be transferred under sub-section (2) of section 15 or any charges payable by him
under any other provision of this Act or of any provision of the

[Scheme or the Insurance Scheme]; or

(b) from the employer in relation to an exempted [establishment] in respect of any

contribution to the provident fund or any insurance fund] (in so far as it relates to exempted
employees), under the rules of [the provident fund or any insurance fund] [any contribution
payable by him towards the [Pension] Fund under sub-section (6) of section 17,] damages
recoverable under section 14B or any charges payable by him to the appropriate
Government under any provision of this Act under any of the conditions specified under
section 17, shall where the liability therefor has accrued before the order of adjudication or
winding up is made, be deemed to be included] among the debts which under section 49 of
the Presidency Towns Insolvency Act, 1909, or under section 61 of the Provincial Insolvency
Act, 1920, or under [section 530 of the Companies Act, 1956], are to be paid in priority to all
other debts in the distribution of the property of the insolvent or the assets of the company
being wound up, as the case may be.

[Explanation: In this sub-section and in section 17, "insurance fund" means any fund
established by an employer under any Scheme for providing benefits in the nature of life
insurance to employees, whether linked to their deposits in provident fund or not, without
payment by the employees of any separate contribution or premium in that behalf.]

[(2) Without prejudice to the provisions of sub-section (1), if any amount is due from an
employer, [whether in respect of the employee's contribution (deducted from the wages of
the employee) or the employer's contribution], the amount so due shall be deemed to be
the first charge on the assets of the establishment, and shall, notwithstanding anything
contained in any other law for the time being in force, be paid in priority to all other debts.]

20 | P a g e
12. Employer not to reduce wages, etc.

No employer in relation to [an establishment] to which any [Scheme or the Insurance

Scheme] applies shall, by reason only of his liability for the payment of any contribution to
[the Fund or the Insurance Fund] or any charges under this Act or the [Scheme or the
Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to
whom the [Scheme or the Insurance Scheme] applies or the total quantum of benefits in the
nature of old age pension, gratuity 74[provident fund or life insurance] to which the
employee is entitled under the terms of his employment, express or implied.]

13. Inspectors

(1) The appropriate government may, by notification in the Official Gazette, appoint such
persons as it thinks fit to be Inspectors for the purposes of this Act [, the Scheme [, the
[Pension ] Scheme or the Insurance Scheme]], and may define their jurisdiction.

(2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the
correctness of any information furnished in connection with this Act or with any [Scheme or
the Insurance Scheme] or for the purpose of ascertaining whether any of the provisions of
this Act or of any [Scheme or the Insurance Scheme] have been complied with [ in respect of
[an establishment] to which any [Scheme or the Insurance Scheme] applies or for the
purpose of ascertaining whether the provisions of this Act or any [Scheme or the Insurance
Scheme] are applicable to any [establishment] to which the [Scheme or the Insurance
Scheme] has not been applied or for the purpose of determining whether the conditions
subject to which exemption was granted under section 17 are being complied with by the
employer in relation to an exempted [establishment].

(a) require an employer [or any contractor from whom any amount is recoverable under
section 8A] to furnish such information as he may consider necessary;

(b) at any reasonable time [and with such assistance, if any, as he may think fit, enter and
search] any [establishment], or any premises connected therewith and require any one
found in charge thereof to produce before him for examination any accounts, books,
registers and other documents relating to the employment of persons or the payment of
wages in the [establishment];

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the
employer [or any contractor from whom any amount is recoverable under sections 8A], his
agent or servant or any other person found in charge of the [establishment], or any
premises connected there with or whom the Inspector has reasonable cause to believe to
be or to have been, an employee in the [establishment];

(d) makes copies of, or take extracts from, any book, register or other document maintained
in relation to the establishment and, where he has reason to believe that any offence under
this Act has been committed by an employer, seize with such assistance as he may think fit,
such book, register or other document or portions thereof as he may consider relevant in
respect of that offence;]

21 | P a g e
(e) exercise such other powers as the [Scheme or the Insurance Scheme] may provide.

(2A) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into
the correctness of any information furnished in connection with the [Pension] Scheme or for
the purpose of ascertaining whether any of the provisions of this Act or of the [Pension]
Scheme have been complied with in respect of an establishments to which the [Pension]
Scheme applies, exercise all or any of the powers conferred on him under clause (a), (b), (c)
or (d) of sub-s. (2).]

(2B) The provisions of the [Code of Criminal Procedure, 1898], shall, so far as may be, apply
to any search or seizure under sub-section (2) [or under sub-section (2A), as the case may
be,] as they apply to any search and seizure made under the authority of a warrant issued
under [section 98] of the said Code.

22 | P a g e
14. Penalties

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act
[the Scheme, ,the [Pension] Scheme] or the Insurance Scheme] or of enabling any other
person to avoid such payment knowingly makes or causes to be made any false statement
or false representation shall be punishable with imprisonment for a term which may extend
to one year, or with fine of five thousand rupees, or with both].

(1A) An employer who contravenes, or makes default in complying with, the provisions of
section 6 or clause (a) of sub-section (3) of section 17 in so far as it relates to the payment of
inspection charges, or para 38 of the Scheme insofar as it relates to the payment of
administrative charges, shall be punishable with imprisonment for a term which may extend
to [three years] but

(a) which shall not be less than [one year and fine of ten thousand rupees] in case of default
in payment of employees' contribution which has been deducted by the employer from the
employees' wages;

(b) which shall not be less than six months and fine of five thousand rupees, in any other
case:]

PROVIDED that the court may, for any adequate and special reasons to be recorded in the
judgment, impose a sentence of imprisonment for a lesser term

(1B) An employer who contravenes, or makes default in complying with, the provisions of
section 6C, or clause (a) of sub-section (3A) of section 17 in so far as it relates to payment of
inspection charges, shall be punishable with imprisonment for a term which may extend to
[one year] but which shall not be less than [Six months] and shall also be liable to fine which
may extend to [five thousand rupees]:

PROVIDED that the court may, for any adequate and special reasons to be recorded in the
judgment, impose a sentence of imprisonment for a lesser term ]

(2) [Subject to the provisions of the Act, the Scheme,] the Pension Scheme or the Insurance
Scheme] may provide that any person who contravenes, or makes default in complying with
any of the provisions thereof shall be punishable with imprisonment for a term which may
extend to [one year, or with fine which may extend to four thousand rupees, or with both].]

[(2A) Whoever contravenes or makes default in complying with any provision of this Act or
of any condition subject to which exemption was granted under section 17 shall, if no other
penalty is elsewhere provided by or under this Act for such contravention or non-
compliance, be punishable with imprisonment which may extend to 146[six months, but
which shall not be less than one month, and shall also be liable to fine which may extend to
five thousand rupees].]

23 | P a g e
14A. Offences by companies

(1) If the person committing offence under this Act, the Scheme , the [Pension] Scheme or
the Insurance Scheme] is a company, every person, who at the time the offence was
committed was in charge of, and was responsible to, the company for the conduct of the
business of the company, as well as the company, shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render any such person liable to
any punishment, if he proves that the offence was committed without his knowledge or that
he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act ,
the Scheme, the [Pension] Scheme or the Insurance Scheme]] has been committed by a
company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of, any director or manager,
secretary or other officer of the company, such director, manager, secretary or other officer
shall be deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.

Explanation: For the purposes of this section

(i) "company" means any body corporate and includes a firm and other association of
individuals; and

(ii) "director", in relation to a firm, means a partner in the firm.]

14B. Power to recover damages

Where an employer makes default in the payment of any contribution to the Fund [, the
[Pension] Fund or the Insurance Fund] or in the transfer of accumulations required to be
transferred by him under sub-section (2) of section 15 [or sub-section (5) of section 17] or in
the payment of any charges payable under any other provision of this Act or of [any Scheme
or Insurance Scheme] or under any of the conditions specified under section 17, [the Central
Provident Fund Commissioner or such other officer as may be authorized by the Central
Government, by notification in the Official Gazette, in this behalf] may recover [from the
employer by way of penalty such damages, not exceeding the amount of arrears, as may be
specified in the Scheme:]

PROVIDED that before levying and recovering such damages, the employer shall be given a
reasonable opportunity of being heard:]

PROVIDED FURTHER that the Central Board may reduce or waive the damages levied under
this section in relation to an establishment which is a sick industrial company and in respect
of which Scheme for rehabilitation has been sanctioned by the Board for Industrial and
Financial Reconstruction established under section 4 of the Sick Industrial Companies

24 | P a g e
(Special Provisions) Act, 1985 (1 of 1986), subject to such terms and conditions as may be
specified in the Scheme.]

Comment: "Nor can it be accepted that there are no guidelines provided for fixing the
quantum of damages. The power of the Regional Provident Fund Commissioner to impose
damages under Section 14-B is a quasi-judicial function. It must be exercised after notice to
the defaulter and after giving him a reasonable opportunity of being heard. The discretion
to award damages could be exercised within the limits fixed by the Statute. Having regard to
the punitive nature of the power exercisable under Section 14-B and the consequences that
ensue there from, an order under Section 14-B must be a 'speaking order' containing the
reasons in support of it." AIR 1979 SUPREME COURT 1803, Organo Chemical Industries v.
Union of India.

14C. Power of court to make orders

(1) Where an employer is convicted of an offence of making default in the payment of any
contribution to the Fund , the [Pension] Fund or the Insurance Fund] or in the transfer of
accumulations required to be transferred by him under sub-section (2) of section 15 or sub-
section (5) of section 17, the court may, in addition to awarding any punishment, by order in
writing require him within a period specified in the order (which the court may, if it thinks fit
and on application in that behalf, from time to time, extend), to pay the amount of
contribution or transfer the accumulations, as the case may be, in respect of which the
offence was committed.

(2) Where an order is made under sub-section (1), the employer shall not be liable under
this Act in respect of the continuation of the offence during the period or extended period, if
any, allowed by the court, but if, on the expiry of such period or extended period, as the
case may be, the order of the court has not been fully complied with, the employer shall be
deemed to have committed a further offence and shall be punished with imprisonment in
respect thereof under section 14 and shall also be liable to pay fine which may extend to
one hundred rupees for every day after such expiry on which the order has not been
complied with.

16A. Authorizing certain employers to maintain provident fund accounts

(1) The Central Government may, on an application made to it in this behalf by the employer
and the majority of employees in relation to an establishment employing one hundred or
more persons, authorize the employer, by an order in writing, to maintain a provident fund
account in relation to the establishment, subject to such terms and conditions as may be
specified in the Scheme:

PROVIDED that no authorization shall be made under this sub-section if the employer of
such establishment had committed any default in the payment of provident fund
contribution or had committed any other offence under this Act during the three years
immediately preceding the date of such authorization.

25 | P a g e
(2) Where an establishment is authorized to maintain a provident fund account under sub-
section (1), the employer in relation to such establishment shall maintain such account,
submit such return, deposit the contribution in such manner, provide for such facilities for
inspection, pay such administrative charges, and abide by such other terms and conditions,
as may be specified in the Scheme.

(3) Any authorization made under this section may be cancelled by the Central Government
by order in writing if the employer fails to comply with any of the terms and conditions of
the authorization or where he commits any offence under any provision of this Act:

PROVIDED that before canceling the authorization, the Central Government shall give the
employer a reasonable opportunity of being heard.]

17. Power to exempt

(1) The appropriate government may, by notification in the Official Gazette, and subject to
such conditions as may be specified in the notification, 165[exempt, whether prospectively
or retrospectively, from the operation] of all or any of the provisions of any Scheme:

(a) any [establishment] to which this Act applies if, in the opinion of the appropriate
government, the rules of its provident fund with respect to the rates of contribution are not
less favorable than those specified in section 6 and the employees are also in enjoyment of
other provident fund benefits which on the whole are not less favorable to the employees
than the benefits provided under this Act or any Scheme in relation to the employees in any
other 1establishment] of similar character, or

(b) any [establishment] if the employees of such [establishment] are in enjoyment of

benefits in the nature of provident fund, pension or gratuity and the appropriate
government is of opinion that such benefits, separately or jointly, are on the whole not less
favorable to such employees than the benefits provided under this Act or any Scheme in
relation the employees in any other [establishment] of a similar character.

[PROVIDED that no such exemption shall be made except after consultation with the Central
Board which on such consultation shall forward its views on exemption to the appropriate
government within such time limit as may be specified in the Scheme.]

(1A) Where an exemption has been granted to an establishment under clause (a) of sub-
section (1),

(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the employer
of the exempted establishment in addition to such other conditions as may be specified in
the notification granting such exemption, and where such employer contravenes, or makes
default in complying with any of the said provisions or conditions or any other provision of
this Act, he shall be punishable under section 14 as if the said establishment had not been
exempted under the said clause (a);

26 | P a g e
(b) the employer shall establish a Board of Trustees for the administration of the Provident
Fund consisting of such number of members as may be specified in the Scheme;

(c) the terms and conditions of service of members of the Board of Trustees shall be such as
may be specified in the Scheme;

(d) the Board of Trustees constituted under clause (b) shall-

(i) maintain detailed accounts to show the contributions credited, withdrawals made and
interest accrued in respect of each employee;

(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer as
the Central Government may direct from time to time;

(iii) invest the provident fund monies in accordance with the directions issued by the Central
Government from time to time;

(iv) transfer, where necessary, the provident fund account of any employee; and

(v) perform such other duties as may be specified in the Scheme.

(1B) Where the Board of Trustees established under clause (b) of sub-section (1A)
contravenes, or makes default in complying with, any provisions of clause (d) of that sub-
section, the Trustees of the said Board shall be deemed to have committed an offence under
sub-section (2A) of section 14 and shall be punishable with the penalties provided in that
sub-section.

(1C) The appropriate government may, by notification in the Official Gazette, and subject to
the condition on the pattern of investment of pension fund and such other conditions as
may be specified therein, exempt any establishment or class of establishments from the
operation of the Pension Scheme if the employees of such establishment or class of
establishments are either members of any other pension scheme or propose to be members
of such pension scheme, where the pensionary benefits are at par or more favorable than
the Pension Scheme under this Act,]

(2) Any Scheme may make provision for exemption of any person or class of persons
employed in any [establishment] to which the Scheme applies from the operation of all or
any of the provisions of the Scheme, if such person or class of persons is entitled to benefits
in the nature of provident fund, gratuity or old age pension and such benefits, separately or
jointly, are on the whole not less favorable than the benefits provided under this Act or the
Scheme:

PROVIDED that no such exemption shall be granted in respect of a class of persons unless
the appropriate government is of opinion that the majority of persons constituting such
class desire to continue to be entitled to such benefits.

(2A) The Central Provident Fund Commissioner may, if requested so to do by the employer,
by notification in the Official Gazette, and subject to such conditions as may be specified in

27 | P a g e
the notification, exempt, whether prospectively or retrospectively, any establishment from
the operation of all or any of the provisions of the Insurance Scheme, if he is satisfied] that
the employees of such establishment are, without making any separate contribution or
payment of premium, in enjoyment of benefits in the nature of life insurance, whether
linked to their deposits in provident fund or not, and such benefits are more favorable to
such employees than the benefits admissible under the Insurance Scheme.

(2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme may
provide for the exemption of any person or class of persons employed in any establishment
and covered by that Scheme from the operation of all or any of the provisions thereof, if the
benefits in the nature of life insurance admissible to such person or class of persons are
more favorable than the benefits provided under the Insurance Scheme.]

(3) Where in respect of any person or class of persons employed in an establishment an

exemption is granted under this section from the operation of all or any of the provisions of
any scheme (whether such exemption has been granted to the establishment wherein such
person or class of persons is employed or to the person or class of persons as such), the
employer in relation to such establishment-

(a) shall, in relation to the provident fund, pension and gratuity to which any such person or
class of persons is entitled, maintain such accounts, submit such returns, make such
investment, provide for such facilities for inspection and pay such inspection charges, as the
Central Government may direct;

(b) shall not, at any time after the exemption, without the leave of the Central Government,
reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to
which any person or class of persons was entitled at the time of the exemption; and

(c) shall, where any such person leaves his employment and obtains re-employment in
another establishment to which this Act applies, transfer within such time as may be
specified in this behalf by the Central Government, the amount of accumulations, to the
credit of that person in the provident fund of the establishment left by him to the credit of
that person's account in the provident fund of the establishment in which he is re-employed
or, as the case may be, in the fund established under the Scheme applicable to the
establishment.]

(3A) Where, in respect of any person or class of persons employed in any establishment, an
exemption is granted under sub-section (2A) or sub-section (2B) from the operation of all or
any of the provisions of the Insurance Scheme (whether such exemption is granted to the
establishment wherein such person or class of persons is employed or to the person or class
of persons as such), the employer in relation to such establishment:

(a) shall, in relation to the benefits in the nature of life insurance, to which any such person
or class of persons is entitled, or any insurance fund, maintain such accounts, submit such
returns, make such investments, provide for such facilities for inspection and pay such
inspection charges, as the Central Government may direct;

28 | P a g e
(b) shall not, at any time after the exemption without the leave of the Central Government,
reduce the total quantum of benefits in the nature of life insurance to which any such
person or class of persons was entitled immediately before the date of the exemption;

(4) any exemption granted under this section may be cancelled by the authority which
granted it, by order in writing, if an employer fails to comply, -

(a) in the case of an exemption granted under sub-section (1), with any of the conditions
imposed under that sub-section or sub-section(1A)or with any of the provisions of the sub-
section (3);

(aa) in the case of an exemption granted under sub-section (1C), with any of the conditions
imposed under that sub-section; and

(b) in the case of an exemption granted under sub-section (2), with any of the provisions of
sub-section (3);

(c) in the case of an exemption granted under sub-section (2A), with any of the conditions
imposed under that sub-section or with any of the provisions of sub-section (3A);

(d) in the case of an exemption granted under sub-section (2B), with any of the provisions of
sub-section (3A).]

(5) Where any exemption granted under sub-section (1), sub-section (1C), sub-section (2),
sub-section (2A) or sub-section (2B)] is cancelled, the amount of accumulations to the credit
of every employee to whom such exemption applied, in the provident fund, [the [Pension]
Fund or the Insurance Fund] of the establishment in which he is employed together with any
amount forfeited from the employer's share of contribution to the credit of the employee
who leaves the employment before the completion of the full period of service] shall be
transferred within such time and in such manner as may be specified in the Scheme or the
[Pension] Scheme [or the Insurance Scheme] to the credit of his account in the Fund or the
[Pension] Fund [or the Insurance Fund], as the case may be.]

(6) Subject to the provisions of sub-section [(1C)], the employer of an exempted

establishment to which the provisions of the [Pension] Scheme apply, shall, notwithstanding
any exemption granted under sub-section (1) or sub-section (2), pay to the [Pension] Fund
such portion of the employers contribution to its provident fund within such time and in
such manner as may be specified in the [Pension] Scheme.]

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21. Power to make rules

(1) The Central Government may, by notification in the Official Gazette, make rules to carry
out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for
all or any of the following matters, namely:

(a) the salary and allowances and other terms and conditions of service of the Presiding
Officer and the employees of a Tribunal;

(b) the form and the manner in which, and the time within which, an appeal shall be filed
before a Tribunal and the fees payable for filing such appeal;

(c) the manner of certifying the copy of the certificate, to be forwarded to the Recovery
Officer under sub-section (2) of section 8C; and

(d) any other matter, which has to be, or may be, prescribed by rules under this Act.

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if, before the expiry
of the session immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified form or be of
no effect, as the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.

Employees provident fund scheme 1952

Section 5 gives wholly unrestricted unguided direction to the central government to frame a
scheme, and it appears on the other hand that the Act is full of carefully laid down principles
to guide the central government which is held in the case R.P.F. Commr. V. L.R.F Works,
A.I.R 1962 Punj. 507

When they say that this scheme has retrospective effect, the employer cannot be asked to
pay the employees contribution for the period antecedent to the notification applying the
scheme because he has no right to deduct the same for the future wages payable to the
employee. The payment of employee contribution by the employer with the corresponding
right to deduct the same from the wages of the employees could be only for the current
period during which the employer also has to pay his contribution, which is held in the case
District exhibitors Assn.,Muzaffarnagar & others V. Union of India (1991) II LLJ 115 (SC).

They were re-employment by the petitioner on a temporary basis. It was held that the
employer cannot be asked to pay a contribution in respect of re-employed employees on a

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temporary basis which is held in the case Bombay printers LTD. & Others V. Union of India
and others (1992)I LLJ 816 (BOM).

The fund shall be administered by the central board constituted under section 5A of the Act.
The scheme shall take effect either prospectively or retrospectively.

Employees deposit linked insurance scheme, 1976

The scheme Established the purpose of providing life insurance benefits to the employees.
The benefit under the scheme is to provide the incentive to the members to save more in
the Provident fund account. The benefit under this scheme is linked to the amount of
accumulation in the Provident fund account of the member. All the members of the
employee’s Provident Fund Scheme are covered as members of the employee’s deposit
linked insurance scheme also.

Employee’s family pension scheme, 1995

For the benefit of providing family pension and life insurance benefit. Following benefit
package is:

 Pension for life to the member, on retirement and invalidation

 To the member of the family upon the death of the members.
 Facility for capital return ( corpus accretion) on an option formula basis
 Commutation if pension up to 1/3 Rd of pension amount.
 Retention of membership of the scheme till attaining the age of 68

Retirement pension under the new scheme will be payable on fulfilling minimum 10 years
eligible service and on attaining the age of 58 years.

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EPF Form
Form 20 EPF settlements in case of employee’s death

This form is submitted by the beneficiary if the employee is departed, to the benefit of EPF,
EPS and EDLI. The amount is paid directly to the beneficiary account, or they will send
through money order.

Form 31 Withdrawal of EPF

This form is submitted for partial withdrawals, used for purposes of house renovation,
availing loans, for education, medical treatment etc. eligible criteria will vary depending on
the purpose of withdrawal.

Form 10C EPS withdrawal

This form is used to claim the withdrawal benefit:

 Before completing 10 years of service.

 Has attained the age of 58 years but not completed 10 years of service.

This form is also used by the family member of the employee in the following circumstances
like:

 Employee departed (after attaining the age of 58 years but has not completed 10
years of service).
 An employee who is above 50 years old but less than 58 years, who don’t wish to opt
for a reduced pension can also use Form 10C.

Form 5 Registration form for new employees for EPS and EPF

This form is used by employers for enrolling new employees for this scheme. The new
employee will give his personal details. This form helps the EPFO to register individuals who
are joining the first time for this scheme. The form should be submitted by the employer
before the 15th of every month, the official website of the EPFO provides the form where
we can download.

Form 5(IF) Employees’ Deposit Linked Insurance (EDLI) scheme claim form

An employee who is contributing to the EPF scheme is already eligible for the employee
linked insurance scheme. In case an employee is departed, this form helps the beneficiary to
get the benefit. By submitting this form, the beneficiary is eligible to get insurance benefit of
rs.4.5 lakhs and bonus benefit of rs.1.5 lakh (maximum benefit of Rs. 6 Lakh).

Form 10D to apply for a pension after retirement

This form is used for withdrawal of pension on a monthly basis after retirement.

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Form 11 Automatic transfer of EPF

The employee must fill this form while joining a new company. This is a self-declaration
regarding the transfer of EPF, details regarding last EPF account must be filled in this form.

Form 14 LIC Policy

This form is submitted to pay the premium amount for the LIC policy; this form should be
submitted to EPF Commissioner after getting an attestation from the employer.

Form 15 G to save Tax Deducted at Source (TDS) for any interest that is generated from
EPF

This form is submitted to use to online withdrawal of EPF amount; this form is used to
withdraw the EPF amount (above 50,000) before completing 5 years of service. Senior
citizens must submit 15H for this facility.

Form 19 Settlement of EPF

This form is submitted by the member who is not having UAN number after 2014.

Form 2 Nominations for the EPF and Employees’ Pension Scheme (EPS)

The employee who is under the scheme shall submit this Form 2 for nomination. The
nominated person will get the EPF fund amount if the employee (EPF member) is departed.

UAN- Universal Account Number

Universal account number (UAN) is number given to an employee by the Ministry of

Employment and Labour under the government of India, who is maintaining PF account. It
used to know information or track information done by his employer regarding his provided
fund (PF). When an employee joined in the new organisation, he was assigned with new PF
account, after UAN came into existence, the member of the assemble (employee) all his PF
account associated with multiple Ids of difference organization at one place. So through
UAN, difficulties faced by the employee when he/she joins the new organization is
overcome, with UAN they can track the activities if there are any payment issues.

Uses of UAN

 It is a unique number given to an employee, which is independent of employers.

 UAN is used to link all the PF account when the employee is switching his company.
 An employer can authenticate his employee by verifying this number and KYC
documents.
 EPF passbook can be verified by sending SMS EPFOHO UAN ENG TO 7738299899
from the mobile number which is registered under employee provident fund
organization.

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  An employee can check his deposit done by his employer through online using UAN
number, and you can also get a monthly update regarding your deposit done by the
employer.

Transparency Through UAN

 Through UAN employee can check the employer is depositing his PF amount
periodically, by registering on EPF member Portal using his UAN.
 The employee would be able to find out whether his employer is deducted or hold
back his PF.

EPF Calculation and Example

Contribution for EPF is two parts, one is by the employee, and the other is by the employer.

Contribution by the employee is, including basic wage and dearness allowance is -12%.

Contribution on the part of the employer is-

 8.33% (for Employees Pension Scheme Account of Employee)

 3.67 % (for Employee Provident Fund Account of Employee)
 0.50% ( for Employees Deposit Linked Insurance Account of Employee)
 0.50% ( is Employer has to pay an additional charge for an administrative account-
minimum 500 rupees and if there is no contribution by the employer that month, an
employer must pay rupees 75)
 The interest rate for every month is 8.65%, which may differ every year (interest rate
is calculated every month, but it is deposited in the account at the end of the
financial year)

Example

For example, the employee is getting a basic salary and dearness allowances at rupees 15,
000.

Employee’s contribution to EPF is 12% of 15,000 that is 1,800.

Employer’s contribution to EPF is 8.33 % of 15,000 that is 1,250.

 Employers contribution for EPF is subtracted from employees contribution that is

(1800-1250=550)
 Total EPF contribution every month is 1800+550=2,350
 Interest for every month is 8.65%/12= 0.7083% (4,700)

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Online EPF Submission

https://www.epfindia.gov.in/site_en/For_Employees.php

Online claim process reduces the time from 20 days to 10 days, follow the below-given steps
for EPF online submission.

1. Activate UAN.
2. Make sure mobile no. used to activate the UAN, is in use.
3. By seeding your adhaar details, e-KYC take place through a onetime password-
Aadhaar authority will send.
4. Enter your bank account details, where the claim amount will appear.
5. You should enter (PAN) permanent account number if you’re not an EPFO member
for at least 5 years.

EPFO Claim status

EPF claim status can be checked through online or offline,

The status of withdrawal/transfer claim submitted.

Online- Member can check the online claim status by visiting the UAN portal or through
visiting the official website of EPFO.

Offline- Any of the PF office by accessing the EPFO website can track the status of the claim
made.

EPFO’s Digital Services and Initiatives

 UAN (Universal Account Number):

o A unique 12-digit number assigned to every employee, making it easy to
manage multiple PF accounts under a single ID.
 EPFO Member Portal and App:
o Enables members to view their passbook, claim PF, update KYC details, and
perform other activities online.
 Direct Benefit Transfer (DBT):
o EPFO has adopted the DBT system to directly transfer benefits to members’
bank accounts, enhancing transparency and reducing processing time.
 Online Claim Submission:
o Members can submit claims for PF withdrawal, transfer, and pension online,
making the process more efficient and convenient.

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EPFO and the Role of Employers

 Employers are required to register under the EPF Act and contribute to the EPF, EPS, and
EDLI schemes.
 They must deduct and submit both their and the employees’ contributions to the EPFO
regularly.
 Employers must facilitate the registration of employees with EPFO, allotting them a UAN and
ensuring KYC compliance.

The Employees' Provident Fund Organisation (EPFO) has introduced several recent reforms
aimed at improving the efficiency and accessibility of its services. These reforms are
intended to streamline processes, particularly around claim settlements, and enhance the
overall user experience.

1. Automation of Claim Settlement: EPFO has implemented an auto-settlement

feature for various types of advances, such as those for medical emergencies,
education, marriage, and housing. Claims up to ₹1 lakh can now be processed
automatically, which significantly reduces the time taken for settlements. In fact,
over 50% of illness claims are now settled within three days, benefiting millions of
members

2. Elimination of Document Uploads for KYC Accounts: For accounts linked with
Aadhaar, the requirement to upload a cheque book or passbook for KYC verification
has been removed. This simplification has reduced claim rejections due to
incomplete documentation, allowing faster processing for around 13 lakh claims in
just one month

3. Introduction of a UAN-Based Single Accounting System: The EPFO is transitioning to

a UAN-based system, designed to consolidate all member accounts under a single
platform. This shift, currently in collaboration with the Centre for Development of
Advanced Computing (CDAC), is aimed at reducing human intervention and
accelerating claim processing times

4. Expansion of Social Security Programs: In addition to technical upgrades, EPFO has

also launched new social security schemes as part of the 2024 Union Budget. These
schemes are designed to stimulate employment through employer incentives and
provide financial security to employees in various sectors

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The Universal Account Number (UAN) is a unique 12-digit identifier assigned to each
member of the Employees' Provident Fund Organisation (EPFO). It serves as a unified
account number that consolidates multiple PF accounts of an employee across various
employers under a single platform, simplifying access and management.

Key Features and Benefits of UAN

1. Single Identification for Multiple Accounts:

o The UAN allows employees to manage multiple EPF accounts linked to different
employers using a single identification number.
o Whenever an employee switches jobs, the new employer generates a new Member
ID, which is then linked to the UAN. This means that even if a person has multiple
Member IDs from different employers, they can all be managed under one UAN.

2. Portability:
o UAN makes it easy to transfer EPF balances from one account to another when
changing jobs, eliminating the need to withdraw and re-deposit PF amounts.
o The portability simplifies account management, making it convenient for employees
to continue accumulating their PF benefits without interruptions.

3. Enhanced Transparency and Access:

o Members can use their UAN to access EPFO services online, such as viewing their
EPF passbook, checking claim status, updating KYC details, and more.
o Employees receive regular SMS updates on contributions and balances, enhancing
transparency. Any unauthorized access or modifications to the account are
immediately notified to the member.

4. KYC (Know Your Customer) Compliance:

o Linking UAN with KYC documents, such as Aadhaar, PAN, and bank account details,
enables members to access a range of online services and ensures the accuracy of
account information.
o KYC verification also makes claim processing and fund transfers more efficient, often
allowing members to initiate partial or full withdrawals online.

5. Simplified Claim Process:

o With UAN-linked KYC, employees can process their claims for EPF withdrawals,
transfers, and advances online without requiring employer approval in many cases.
o This digitized process significantly reduces the time and effort needed for claim
settlements, as members can directly initiate and track claims through the EPFO
Member e-Sewa Portal or the UMANG App.

How to Generate and Activate UAN

1. Generation:

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 o Typically, UAN is generated by the employer when an employee joins a company
covered by the EPF Act. The UAN remains the same for the employee throughout
their career, irrespective of the number of job changes.
o Employees can check their UAN through their employer or via the EPFO website by
entering their Member ID or EPF number.

2. Activation:
o Once generated, the UAN can be activated on the EPFO website. Members need to
visit the UAN Member e-Sewa portal, provide the UAN along with other personal
details, and create a password for future logins.
o After activation, members can download their EPF passbook, view their
contributions, and initiate various services.

Linking UAN with Aadhaar

The EPFO mandates the linking of UAN with Aadhaar for seamless functioning of services
and to reduce the chances of duplicate accounts. Linking the UAN with Aadhaar simplifies
identity verification, enabling faster processing of PF-related claims and enhancing security.

Access to UAN-Related Services

1. EPFO e-Sewa Portal:

o The e-Sewa Portal allows members to view passbooks, update KYC details, track
claim status, and initiate transfer requests.

2. UMANG App:
o The UMANG (Unified Mobile Application for New-age Governance) App provides
mobile access to EPFO services, allowing members to manage their PF account from
anywhere.

3. SMS Alerts and Missed Call Facility:

o Once KYC is complete, members receive SMS alerts related to monthly PF
contributions.
o By giving a missed call to 011-22901406 from their registered mobile number,
members can check their latest PF balance and contributions.

Employers who fail to pay their contributions to the Employees' Provident Fund (EPF) are
subject to penalties under the Employees' Provident Fund and Miscellaneous Provisions
Act, 1952. Here are the primary penalties for non-payment or delayed payment of EPF
contributions:

1. Interest on Late Payment (Section 7Q)

 If an employer does not make the monthly EPF contributions on time, they are liable to pay
interest at 12% per annum on the unpaid amount for the period of delay.
 This interest is calculated monthly and is intended to compensate the EPF fund for the late
contributions.

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2. Damages for Default in Payment (Section 14B)

 In addition to the interest, EPFO imposes damages as a penalty for delayed payments based
on the period of delay. These penalties can range from 5% to 25% of the total amount due,
depending on the length of the delay:
o Up to 2 months delay: 5% per annum
o 2-4 months delay: 10% per annum
o 4-6 months delay: 15% per annum
o More than 6 months delay: 25% per annum
 This tiered structure acts as a deterrent against delayed payments.

3. Criminal Liability and Imprisonment

 Persistent failure to deposit EPF contributions can lead to prosecution. Employers may face
imprisonment for up to 3 years (with a minimum sentence of 1 year) if the employer is
found guilty of withholding the employee's contribution after deducting it.
 Employers can also face imprisonment of up to 1 year or a fine of ₹5,000 for other violations
under the Act.

4. Attachment and Recovery of Dues

 EPFO has the authority to recover dues by attaching the employer's bank accounts or
property. They may also issue recovery notices to employers, which could lead to the seizure
of assets to cover unpaid contributions, interest, and penalties.

5. Disqualification from Benefits

 An employer's failure to pay EPF dues can disqualify the organization from various benefits
under EPFO’s schemes and may also impact the company's reputation, making it more
challenging to attract and retain employees.

Recent Reforms and Relaxations

 During the COVID-19 pandemic, EPFO temporarily reduced penalties to support businesses
struggling with financial challenges. However, these relaxations were specific to the
pandemic, and regular penalties apply as of now.

To obtain an Employees' Provident Fund Organization (EPFO) registration for a

company, the employer must follow these steps:

1. Eligibility

 EPF registration is mandatory for companies with 20 or more employees. However, even
smaller businesses can voluntarily apply for EPFO registration to provide social security
benefits to their employees.
 Certain industries with fewer employees may still be required to register based on specific
state laws or regulations.

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2. Gather Required Documents

The employer needs to collect several documents before proceeding with the registration:

 Employer’s PAN Card

 Proof of Business (e.g., partnership deed, certificate of incorporation, or registration
certificate)
 Address Proof (e.g., utility bills or rental agreement)
 Employee Details such as Aadhaar and bank account information
 Digital Signature of the Employer for online registration and filings
 Certificate of Incorporation (for companies), or a partnership deed (for partnerships)

3. Register on the EPFO Portal

 Go to the Unified Shram Suvidha Portal on the EPFO website.

 Under the Establishment Registration section, create an account by providing the required
information and completing the verification process.
 After verification, log in to your new account.

4. Fill Out the Employer Registration Form

 After logging in, select the option to register a new establishment.

 Complete the Employer Registration Form, providing details about the company and its
employees. Information needed includes the number of employees, type of business,
address, and contact information.
 Upload the necessary documents, including the digital signature of the employer.

5. Submit and Verify

 After filling out the form and attaching the documents, submit the application.
 The EPFO will verify the application. In case of any discrepancies, the employer may be
contacted for clarification.
 Upon successful verification, the company will receive a unique Establishment Identification
Number (EIN).

6. Activate the UAN for Employees

 Once the registration is complete, employers should generate a Universal Account Number
(UAN) for each eligible employee.
 Employers can generate and activate UANs via the EPFO portal, linking each employee’s
account to the company’s EPF scheme.

7. Compliance and Monthly Contributions

 After registration, the employer is responsible for deducting 12% of the employee’s basic
salary and contributing an additional 12% to the employee's EPF account.
 EPF contributions must be paid monthly by the 15th of each month to avoid penalties.

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The Employees' Provident Fund Organization (EPFO) offers multiple benefits to
employers, aside from being a statutory requirement for companies with 20 or more
employees. Here are some key reasons why EPFO is important for employers:

1. Legal Compliance

 The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 mandates that
companies with 20 or more employees register with EPFO and contribute towards their
employees' provident fund. Non-compliance can lead to legal penalties, including fines and
imprisonment.
 EPFO compliance enhances a company's credibility and shows adherence to labor laws,
which is crucial for corporate governance and reduces the risk of legal issues.

2. Employee Retention and Satisfaction

 Contributing to EPF demonstrates an employer’s commitment to the financial well-being of

their employees, as it provides them with long-term savings and security.
 EPF contributions, along with benefits such as pension and insurance through Employees'
Pension Scheme (EPS) and Employees' Deposit Linked Insurance (EDLI), make the job more
attractive and contribute to employee loyalty, thus helping to retain talent.

3. Enhanced Reputation and Employer Branding

 By offering EPF benefits, employers enhance their brand reputation as a responsible and
employee-centric organization. This can be a strong point for attracting top talent in
competitive industries.
 Many job seekers look for employers who offer provident fund benefits, as it signals stability
and security within the company.

4. Financial Security for Employees

 EPF helps employees build a financial safety net by saving a portion of their income, which is
invaluable in case of retirement, medical emergencies, or other financial needs.
 The EPF’s social security aspects ensure employees are covered under pension and
insurance schemes, reducing their financial vulnerability, which in turn enhances
productivity and reduces stress-related work absences.

5. Tax Benefits

 Employer contributions to EPF are tax-deductible under Section 37(1) of the Income Tax Act,
reducing the company’s overall tax liability.
 This tax benefit provides financial advantages to the employer while simultaneously helping
employees build a tax-efficient savings structure.

6. Systematic Financial Management and Ease of Operations

 EPFO registration provides companies with access to streamlined, government-supported

financial management tools, such as the EPFO Employer e-Sewa Portal.
 The portal enables employers to handle multiple processes online, including employee
enrollments, monthly contributions, and compliance reports, all of which are integrated with

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 the Universal Account Number (UAN) system. This digitized system minimizes administrative
costs and reduces paperwork, thereby enhancing operational efficiency.

7. Contribution to Corporate Social Responsibility (CSR)

 Offering EPF benefits contributes to an organization’s CSR objectives, as it plays a role in

enhancing social security for employees. In doing so, companies are able to align with
broader social welfare goals while improving employee morale and well-being.

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