Monday, 1 September 2014

Employees Provident Fund and Miscellaneous Provisions Act 1952: Employee’s Deposit Link Insurance Scheme and Calculation of amount due from employer

Employee’s Deposit Link Insurance Scheme: Sec 6C

Every employer upon whom the EPS act is applicable must pay insurance premium to the central board of trustees.
The CBT shall maintain an insurance fund out of which some amount is given to the employee on his accidents or illness similarly if the employee expires then amount is given to the family members of employee.
The deposit link insurance is a benefit provided by employer to the employees’ compulsorily under this law.
The insurance premium paid by the employer will be 1/4th of the total contribution in the provident fund.

Calculation of amount due from employer: Sec 7
Provident fund department has provident fund commissioners and the provident fund commissioners may calculate the money due from employer.
For calculation of money the audited P/L account and balance sheet of the employer is verified it is always assumed that the profit and loss account and balance sheet are correct and these can be relied upon.
Inquiry Officers:
Under employees provident fund act inquiry officers are appointed and these inquiry officers have the powers of court. The inquiry officers will carry out the inquiry and investigations so that employees provident fund contributions can be calculated.

The inquiry officers may order the employer to produced documents and books of accounts at the same time these officers may issue orders the employer for payment of PF contributions, pension and deposit link  insurance premium.

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