For Employees

For New Entrants:

• Enrolment: An employee is eligible for membership from the day he joins the covered
establishment.

• If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join
the Scheme(s) with the consent of employer.

• Declare previous employment details, if any, in Form No. 11 to the employer.

• On becoming a member of the Schemes file details in Form No. 2 ( family particulars/
nominations) through the employer.

• Rate of contribution payable by a member shall be @ 12% of his emoluments.

• A member can contribute statutorily over and above the prescribed rate.

Employer

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.
• Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
Administrative Charges:

• An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund
charges and 0.01% towards EDLI Scheme 1976.
• No separate administrative charges for pension scheme

Inspection Charges:

• In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection
charges at the rate of 0.18% of emoluments.
• In the case of establishment exempted from EDLI Scheme, the employer is required to pay only
inspection charges at the rate of 0.005% of emoluments.

Interest Liability:

• For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on
such remittances for the period of delay is to be remitted.

Damages:-

• For all the belated remittances of contribution and administration/inspection charges damages are also
payable as penalty ranging from 17% to 37% p.a. depending upon delay.

Duties of Employer

• Enrol all categories of employees including the employees engaged by or through contractors and also
piece rated, hourly rated employees.
• Remit the contributions and administrative charges before the 15th of the following month.
• File the initial returns of Form 9, Form 3(P.S.), form 5A.
• File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
• Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in
Form 3A and 6A after reconciliation with Challans and form 12A.
• The employer has to ensure that statutory dues in respect of contractors employees are remitted and
returns filed.
• Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/
nominees.
• Make available all relevant records for inspection of visiting officials with due authorisation.

Exemptions under the Schemes

Provident Fund

• An individual member getting Provident Fund benefits on par with or better than statutory provisions can
apply for exemption in Form 1 under para 27.
• Employers can apply for exemption in respect of a class of employees getting similar or better benefits
than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
• The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the
employees also consent for exemption, subject to certain conditions governing grant of exemption and
certain formalities.

Pension Scheme
 • Employer can avail exemption for the establishment as a whole, with the consent of majority of
employees, if an alternative pension scheme is formulated by the establishment with benefits either on par
with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the
scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the
grant of exemptions.
• There is no provision for exemption of individuals or for class of employees.

EDLI Scheme

• The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a
benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any
contributions.
Proforma for Coverage
( to be submitted by an employer along with one or more of the documents mentioned
below for obtaining Code Number)
1. Name of the establishment/factory
and address.
2. Details of Head Office and branches
with address.
3. Details of Code No. if any allotted to
the Head Office.
4. Date of Incorporation/Set up (Please
furnish any one of the documents
mentioned overleaf in support of the
proof of date of set up of the est./factory)
5. Employment Strength
(i) At present :
(ii)Month wise employment strength from
the date of set up may be furnished in
separate statement :
6. Nature of business activity/
manufacturing activity :
7. Details of legal set up of the establishment
(Please mention whether it is an
incorporated Private or Public Limited
Company, Society, Partnership or
Proprietary concern) :
8. Details of the employers/ownership
particulars etc. (Names, Designation and
Addresses of Managing Director,
Directors, Partners, Secretary etc. to
be furnished) :
9. Wages disbursed for the month :
10. Details of Bankers: (Including Bank
Branches & Account Number (s).)
11. Income Tax Permanent A/c. No.
12. Details of employees are furnished below :-
S.No. Name of the employee Father’s Name Date of
Joining
Wages (basic +
D.A. & Cash
Value of food
concession)
1.
2.
3.
4.
5.
6.
7.
8.
9
10
11
12
13
14
15
16
17
18
19
20
21
(In case you have more than 21 employees the above information in
respect of the other employees may be added in a separate sheet of paper in the same
format continuing the serial number. )
11. Details of bank draft amounting to the contribution. Name of the Bank &
And administrative charges paid in respect of the above . Branch
employees. (Rate of Contribution at present is 12% by .
employer and employees+ 0.5% towards E.D.L.I. . Draft No.& Date
contribution and 1.15% towards administrative charges) .
Amount
VERIFICATION
The details furnished above are correct to the best of our knowledge and
belief. It is clearly understood that we are liable for coverage from a date antecedent to
the date of set up furnished above in the event of furnishing of false information.
(Signature)
Employer.
Essential Document(s) to be submitted (For other than a proprietary concern)
1. A copy of Memorandum and Articles of Association and the certificate of
incorporation issued by the Registrar of Companies, in the case of Public and
Private Ltd. Companies.
2. A copy of partnership deed in the case of partnerships.
3. A copy of Registration certificate issued by the Registrar of Co-operative
societies.
4. A copy of Registration certificate issued by Registrar in the case of societies
registered under Societies Registration Act along with a copy of the objects
and Rules of the Society.
5. Partition deeds creating HUF.
6. Any agreement or other legal documents in the case of Association of persons
as defined in the Income Tax Act.
A list of documents which can be submitted as a proof of date of set up :-
(Any one of these documents has to be submitted)
1. First Sales Invoice.
2. Any proof regarding date of trial production.
3. Incorporation Certificate issued by the Registrar of Companies together
with the report of the Managing Director to the Shareholders in the
Annual Report.
4. Commencement of Business Certificate issued by the Registrar of
Companies.
5. Certificate of Registration issued by the Registrar of Co-operative
Societies.
6. Certificate of Registration issued under Societies Registration Act.
7. Certificate issued by Reserve Bank of India registering newly set up and
non-banking financial companies.
8. License issued by the Health Authorities.
9. License/permission issued by the Municipal/Corporation Authorities.
10. Permission/approval granted by the appropriate State Govt. Authorities in
the case of Educational Institutions.
11. Certificate issued by the Fire Authorities in the case of establishments
coming under Explosives Act.
12. First assessment order issued by the Sales Tax Authorities.
13. First assessment order issued by the Income Tax Authorities.
14. Certificate issued by the Small Scale Industries authorities registering the
establishment.
15. Reports/returns to Central Excise authorities.
16. Sanction/connection of power like H.T. connection, L.T. connection etc.
17. Any other Certificate issued by any authority under any law for the time
being in force prior to the commencement of business
activity/manufacturing activity.
The above list is not exhaustive and is only illustrative. Any one
or more of the above documents may be submitted along with your application for
allotment of a Code Number.