Overview:
Under the Employees' Provident Funds (EPF) and Miscellaneous Provisions Act,
1952, there are three types of benefit provided to the employees:
• Contributory Provident fund
• Pensionary Provident Fund provided to the employees or the family members of the
employees
• Insurance cover provided to the members of the Provident Fund Scheme.
This act is applicable to every industry which is engaged in the manufacturing of
products listed under the schedule and where 20 or more workers are employed. The main
objective of the Provident Funds scheme is to help the employees financially by
providing a lump sum amount on their retirement. The employees contribute a certain sum
of money from their salary income every month towards the Fund in exchange for a fixed
amount of money on retirement or early death.