The Constitution of India under "Directive Principles of State Policy" provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want.
The Employees' Provident Fund Organization (EPFO) is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. It is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on.
This enactment is compulsorily applicable if 20 or more employees (including contractor’s) are employed and activities are falling under scheduled I. Option is also available for voluntary coverage, if majority of employees and employer agrees for the coverage
Employee’s salary (Basic + DA) rate is below Rs. 15000/- pm
Remains to be covered, Opted to be covered even rate is above Rs. 15000/- pm
Coverage of disabled an international workmen u/p 82 & 83 respectively
Normally 12% from employees and 13.36% (12+0.85+0.50+0.01) from employers
Employer is liable for both the shares of past periods
Contractor’s employees liability is on principal employer
Delay / Defaults in payments of contributions and charges leads to levy of damages, interest
Provisions of imprisonment and fine are there