1. Salient Features of Employees Provident Funds and Miscellaneous Act, 1952:
INTRODUCTION:
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) is a
significant piece of legislation in India aimed at providing social security and financial stability to
employees in the organized sector. Enacted on March 4, 1952, it encompasses various schemes
that ensure a safety net for employees post-retirement or in case of unforeseen circumstances. The
Act facilitates the establishment of provident funds, pension schemes, and deposit-linked insurance
for employees, thereby promoting their welfare and economic security.
OBJECTIVE:
The primary objective of the Employees' Provident Funds and Miscellaneous Provisions Act
is to provide financial security and welfare for employees through a compulsory savings scheme
after their retirement, thereby promoting their well-being. The Act aims to:
1. Ensure a steady income for employees after retirement.
2. Encourage savings among employees during their working years.
3. Provide financial assistance to employees and their families in case of death or disability.
4. Establish a framework for the regulation and management of provident funds and related
schemes.
APPLICABILITY:
The Act applies to:
- Every establishment that employs 20 or more persons.
- Any establishment that may be notified by the Central Government.
This broad applicability ensures that a significant portion of the workforce is covered under its
provisions. It covers employees earning up to ₹15,000 per month, ensuring a broad base of
workers can benefit from its provisions.
