EMPLOYEE PROVIDENT FUND

vijay dhiman (Querist) 14 April 2009 This query is : Resolved
1.WHT IS THE LIMIT OF EPF DEDUCTION BY NUMBER OF EMPLOYEE AND BY AMOUNT.

2. WHT WE Should be deducted amount paid to a contractor (sweeper , labour or any other labour which was working in a contractor)

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A V Vishal (Expert) 15 April 2009
Coverage

Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.

Co-operative Societies, employing 50 or more persons & working without the aid of power.

Establishments not coverable statutorily can come under the coverage of the Act statutorily.

An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.

Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.
Financial Obligations:

Contributions:

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.

Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.

Establishments declared as sick undertakings by BIFR.

A matching contribution is to be collected from the emoluments of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.

Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.