Employees Provident Fund and Miscellaneous Provisions Act, 1952: formula sheet

Key formulas

Coverage of Chapter III (provident fund)

Covered if: First Schedule applies, OR agreement notified by the CPF Commissioner, OR Central Government notification under the power to apply the Code

The Code extends to the whole of India. Commencement can be on different dates for different provisions.

Once covered, always covered

Establishment covered at the first instance stays covered even if employees fall below the First Schedule threshold

Applies to any Chapter, not only provident fund.

Wages: the one-half rule

If excluded items > 50% of total remuneration, wages = total remuneration − 50% of total remuneration; otherwise wages = total remuneration − excluded items

Total remuneration means everything paid or payable. Excluded items are those the definition lists. Use your ICMAI list of exclusions.

Repeal and savings

EPF Act, 1952 is item 3 of the repeal list in section 164(1); past acts deemed done under the Code; EPF Scheme 1952, EDLI Scheme 1976, EPS 1995 and Tribunal (Procedure) Rules, 1997 continue for one year from commencement of the Code to the extent not inconsistent

Section 164(2)(a) and (b). Exemptions already granted continue until they expire (section 164(2)(c)). Item 3 of section 164(1) was not in the 21 November 2025 notification, so check the latest notification for the EPF Act's repeal.

Transitional bodies

Old Central Board, Executive Committee, ESI Corporation, Medical Benefit Council, Standing Committee and BOCW Board continue to exercise the powers and functions of the corresponding bodies under the Code until those are constituted under the Code or the old time period expires, whichever is earlier

Section 153.

Composition of the Central Board (Section 4(1))

Chairperson + Vice-Chairperson + ≤5 Central Govt officials + ≤15 State Govt representatives + 10 employer representatives + 10 employee representatives + Central Provident Fund Commissioner (ex officio)

Chairperson and Vice-Chairperson are appointed by the Central Government. Five and fifteen are maximum limits; ten and ten are fixed numbers.

Status of the Board (Section 4(2))

Body corporate + perpetual succession + common seal + can sue and be sued

Name: Board of Trustees of the Employees' Provident Fund.

Executive Committee (Section 4(3))

Constituted by the Central Government, by notification, from among members of the Central Board

Its role is to assist the Central Board in performing its functions, in the prescribed manner.

Other committees (Section 4(4))

Central Board may, by order, constitute one or more committees

Composition is as specified in the order. Constituting authority here is the Board, not the Government.

Delegation (Section 4(5))

Central Board → Chairperson / Executive Committee / any of its officers; State Board (constituted under section 12) → its Chairperson / any of its officers

Done by order, subject to conditions and limitations the delegator specifies, for efficient administration of the schemes under section 15(1).

Tenure proviso (Section 4(6))

A Board member continues in office after tenure expires until his successor is appointed

Terms and conditions, including tenure, are prescribed by the Central Government. The proviso applies to members of the Central Board.

Rule-making (Section 155(2)(d))

Rules may provide for manner of administration of funds, Executive Committee assistance, terms and tenure, and other functions under section 4

Rules are made by notification, subject to previous publication (Section 155(1)).

Employer's PF contribution (standard)

Employer = 10% × wages

Section 16(1)(a). Applies to each employee, whether employed directly or through a contractor.

Employer's PF contribution (notified establishments)

Employer = 12% × wages

Applies only to establishments or classes the Central Government specifies by notification.

Employee's contribution

Employee = Employer's contribution (minimum); may be higher if employee desires

Employer need not match any amount above his own contribution.

Pension Fund share

Pension share ≤ 8⅓% of wages (or notified %)

Section 16(1)(b)(i). This is a ceiling, not a fixed split. The Pension Scheme or a notification governs the actual sum. It is paid out of the employer's contribution, not added to it.

Insurance Fund contribution

Employer's DLI payment ≤ 1% of wages (or notified %)

Section 16(1)(c). Further sums up to one-fourth of this amount may be required for administration expenses.

Monthly member pension (EPS)

Monthly pension = (Pensionable salary × Pensionable service in years) ÷ 70

Pensionable salary is the average monthly pay over the 60 months before exit, with wages capped at ₹15,000 a month.

EPS contribution

Employer to EPS = 8.33% of wages (wages capped at ₹15,000); Employer to EPF = 12% − 8.33% = 3.67%

Employee contributes nothing to EPS. The Central Government adds 1.16% of wages up to the ₹15,000 ceiling, a maximum of ₹174 per month.

Pension eligibility

Superannuation pension: age 58 and at least 10 years of eligible service

Early pension is available from age 50 with a reduction for each year short of 58 (4% per year under the existing EPS); confirm against current material. Below 10 years of service, a withdrawal benefit is paid instead.

EDLI benefit on death in service

Benefit = (35 × average monthly wages of last 12 months) + (50% × average PF balance of last 12 months, bonus capped at ₹1,75,000)

Wages are capped at ₹15,000, so the maximum is ₹7,00,000. Minimum is ₹2,50,000 where the member had continuous service of at least 12 months in the same establishment or with one or more employers.

EDLI contribution

Employer pays 0.5% of wages (wages up to ₹15,000)

The employee pays nothing towards EDLI.

Transfer of accounts (Section 22)

Job change (covered → any, or uncovered → covered) ⇒ accumulated PF/pension amount is transferred or dealt with as the Scheme specifies

Applies to both the provident fund account and the pension account. The manner of transfer is left to the Scheme.

Authorisation to maintain own PF account (Section 21(1))

Establishment with 100 or more persons + application by employer AND majority of employees ⇒ Central Government may authorise by written order

The authorisation is discretionary ('may'). It is given in the manner prescribed and on Scheme terms.

Bar on authorisation (proviso to Section 21(1))

No authorisation if employer defaulted in PF contribution or committed any other offence under the Code in the 3 years immediately before the authorisation

Both a payment default and any other offence under the Code trigger the bar.

Duties of authorised employer (Section 21(2))

Maintain account + submit return + deposit contribution + allow inspection + pay administrative charges + follow other Scheme terms

All are as specified in the Provident Fund Scheme.

Cancellation (Section 21(3))

Cancel by written order if terms are breached or an offence is committed, after giving a reasonable opportunity of being heard

Hearing before cancellation is mandatory.

Withdrawal, advances, nomination and payment on death

Conditions, limits and procedure ⇒ as specified in the Provident Fund Scheme

The Code supplied here does not list the conditions. Do not quote figures unless your study material gives them.

Damages ceiling

Damages ≤ Amount of arrears

Damages can never exceed the arrears due. Apply the cap after computing the damages.

Interest or damages on delay (simple basis)

Amount = Arrears × Rate per year × Months of delay ÷ 12

Use this only when the question gives a rate and asks for simple calculation. Interest and damages are levied under different provisions and at different rates, so use the separate rate the question gives for each. Damages follow the Scheme's own slab.

Total payable on default

Total = Arrears + Interest + Damages

Present the three parts separately in your answer.

Due date for deposit

Deposit by the date fixed under the Scheme (traditionally the 15th of the month following the wage month)

The due date is fixed by the Scheme, and the Code's application depends on notification. Confirm it against your material and the question.

Contract workers

Principal employer pays both shares and administrative charges first, then recovers: employee's share by deduction from payments to the contractor (or directly from the contractor); employer's share and charges from the contractor

The principal employer cannot refuse to pay because the contractor failed.

Employer's share

Employer's own contribution cannot be deducted from the employee's wages

Only the employee's share is deducted from wages.

Hearing before damages

Damages can be levied only after a reasonable opportunity of being heard

This is a natural-justice safeguard and a frequent theory point.

Exemption condition (s.143(4))

Exemption only if employees get benefits substantially similar or superior to the Code

This is the core test. Without it, no exemption can be granted.

Duration of exemption (s.143(3))

Initial period = 3 years from date of publication of notification

Extension is by the appropriate Government for the period prescribed by the Central Government. For PF, Pension and Insurance Schemes, the period is as per the respective scheme.

Prior consultation (s.143(1))

PF/Pension/Insurance Scheme: consult Central Board. Chapter IV: consult Corporation

Applies to both grant and renewal.

Pre-deposit for Tribunal appeal (s.23(3))

Employer deposits 25% of the amount due as determined under section 125

Applies to appeals on determination of dues, not to appeals on damages under section 128.

Pre-deposit for Employees' Insurance Court (s.49(2))

Employer deposits 50% of the amount claimed by the Corporation

Court may waive or reduce it, for reasons recorded in writing.

Time to decide appeal (s.23(4))

Tribunal endeavours to decide within 1 year of the appeal

It is a target, not a rigid bar.

Transitional rule (s.153)

Old body continues until the new body is constituted or its old term expires, whichever is earlier

Applies to the six listed bodies, such as the old Central Board and the ESI Corporation.

Quick revision

• Start every answer by checking whether the establishment and the employee are covered.
• Wages for contribution purposes are defined terms: do not use your general idea of salary.
• The employee and employer both contribute; confirm the rate and wage limit in your prescribed material.
• The employer's contribution is divided between the provident fund account and the pension scheme.
• The Central Board of Trustees administers the fund through the Employees' Provident Fund Organisation.
• Three schemes sit together: provident fund, pension and deposit linked insurance.
• Nomination matters: it decides who receives the money if the member dies.
• Know the conditions under which a member may withdraw, and learn the cases separately.
• The employer must deposit contributions on time, keep records and allow inspection.
• Delay in payment can lead to damages, and other defaults can lead to penalties.
• Exemptions and appeals are exceptions with their own conditions: learn them as short lists.
• In MCQs, read all four options before choosing, since options often differ in one condition only.

Common mistakes

• Saying an establishment leaves the provident fund net as soon as its employee count drops below the threshold. Fix: Recall that an establishment covered at the first instance continues to be covered even if the number falls below the First Schedule threshold.
• Saying an employer alone can opt out of Chapter III after joining by agreement. Fix: Opting in and opting out both need agreement between employer and majority of employees, and the Commissioner must be satisfied of it.
• Treating the numbers five and fifteen as fixed. Fix: Write 'up to 5' and 'up to 15', and 'exactly 10' for employers and for employees.
• Saying the Central Board itself constitutes the Executive Committee. Fix: The Central Government constitutes the Executive Committee by notification, from among Board members. The Board constitutes other committees by order.
• Saying the employer must match the employee's voluntary extra contribution. Fix: Equality applies to the contribution payable under the section. Above ten per cent, the employer has no obligation to pay more.
• Using 12% for every establishment. Fix: The Code states ten per cent as the rule. Twelve per cent applies only where the Central Government notifies the establishment or class.
• Saying the employee contributes to EPS or EDLI. Fix: Remember that EPS comes out of the employer's 12% (8.33% share) and EDLI is paid by the employer alone at 0.5%.
• Using actual wages above ₹15,000 in the pension formula. Fix: Cap pensionable salary at ₹15,000 a month before multiplying by service and dividing by 70.
• Quoting exact withdrawal limits or percentages from memory. Fix: State the principle and write that conditions are as specified in the Provident Fund Scheme.
• Saying the authorisation under Section 21 needs only the employer's application. Fix: Remember that the application must come from the employer and the majority of employees.

Exam tips

• For a short note on repeal, name the 1952 Act among the nine repealed enactments in section 164 and give the savings in plain words.
• In wages problems, show total remuneration, excluded items and the 50% check as separate lines. Step marks go to the check even if the final figure is wrong.
• Do not quote the First Schedule threshold or section numbers of definitions unless your ICMAI material gives them clearly. Describe the rule in words.
• In MCQs, watch for statements with 'only' or 'always'. The continuity rule and the one-year life of the old Schemes are common traps.
• Mention that the Code can come into force on different dates for different provisions when a question asks 'is it in force'.
• Learn Section 4 sub-section by sub-section. Examiners set MCQs on numbers, who appoints, and who constitutes which committee.
• In a written answer, begin with the Government's power to constitute by notification, then composition, then status. This order earns clear step marks.
• Write the Act as the Code on Social Security, 2020. Do not use old Act section numbers.