Provident Fund

The Employees’ Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death.

It extends to the whole of India except the State of Jammu and Kashmir and is applicable to:

• every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed;
• every other establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify;
• other establishment so notified by the Central Government even if employing less than 20 persons.

Employees entitled

Every employee, including the one employed through a contractor (but excluding an apprentice engaged under the Apprentices Act or under the standing orders of the establishment and casual laborers), who is in receipt of wages up to Rs. 6,500 p.m., shall be eligible for becoming a member of the funds.

The condition of three months’ continuous service or 60 days of actual work, for membership of the scheme, has been done away with, w.e.f . 1.11.1990. Workers are now eligible for joining the scheme from the date of joining the service.