Employees Provident Fund & Miscellaneous Provisions Act, 1952 is one of the important social security legislations. The employees’ provident Fund and Miscellaneous provisions Act of 1952 is a beneficial piece of legislation, enacted as a measure of social Justice and should be understood liberally so as to confer benefit on the employees to the maximum extent. The preamble to the Act states that objectives of this Act is to provide for the institution of provident fund, pension fund and deposit-linked insurance fund for employees in factories and other establishments.
Short Title and Commencement of the Employees Provident Fund Act
1. This Act may be called The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
2. It extends to the whole of India except the State of Jammu and Kashmir.
3. An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time fall below twenty.
Objectives of the Employees Provident Fund & Miscellaneous Provisions Act, 1952
- To provide social security to the working class and to inculcate among workers the spirit of saving while gainfully employed.
- To make some provision for the future of the industrial worker after his retirement or for his dependents in case of his early death and inculcating the habit of saving among the workers.
- To provide timely monetary assistance to industrial employees and their families when they are in distress and/or unable to meet family and social obligations and to protect them in old age, disablement, early death of the bread-winner and in some other contingencies.
Schemes Under the Act
The Act empowers the Central Government to frame three types of schemes for the benefit of the employees or any class of employees. Various benefits schemes under this act are as follows:
- Employees’ Provident fund Scheme (EPFS), 1952: The EPFS provides a defined contribution Lump-sum on retirement, on ill-health or for house purchase.
- Employees’ Pension Scheme (EPS), 1995: The EPS provides a defined benefit pension, with a normal retirement age of 58 and the option to take part of the pension as a cash lumpsum.
- Employees’ Deposit-Linked Insurance Scheme (EDLIS), 1976: The EDLIS provides a life insurance benefit.