The Employees Provident Fund Act, 1952 had passed with a view to making some provisions for the future of the employees after her/his retirement or for her/his dependants in case of early death & inculcating the habit of saving among the workers. This Act was framed under section 5 of the Act, which came into force 1st November 1952.
Amendment of the ActThis Act was amended in 1976 with a view to introducing employees deposit linked insurance scheme, a measure to provide an insurance cover to the members of the provident fund with out the payment of any premium by these members. Further the Act was amended in 1995 providing for employees pension scheme.
Objective of the Act
To provide substantial security & timely monetary assistance to employees & to their families
To protect them in old age, disablement & at the time of early death
Under the scheme, a member may withdraw the full amount standing to her/his credit in the fund in the event of:
Retirement from service after attaining the age of 60 years
Retirement on account of permanent & total incapacity
Migration from India for permanent settlement abroad & the membership for this purpose is reckoned from time of joining the covered establishment till the date of the settlement of the claim.
Some major initiatives for the withdrawal of fund
Financing of life insurance policies
Purchasing shares of consumers co-operative credit housing societies
During temporary closure of establishments
Illness of family members
Member’s own marriage or for the marriage of her/his sister, brother or daughter/son & post matriculation education of children
In case of damages to movable & immovable property of members due to a calamity of exceptional nature
Grant in advance to members who are physically handicap for the purchase of equipment