Abstract
The Employee Provident Fund and Miscellaneous Provisions Act, 1952, is a cornerstone of India’s social security system, aimed at promoting financial stability and retirement benefits for employees in the organized sector. The Act mandates contributions from both employers and employees toward a provident fund, pension fund, and insurance scheme, thereby creating a comprehensive framework for employee welfare. Among its key components is the Employee Pension Scheme (EPS), introduced in 1995, which provides a monthly pension to employees after retirement, subject to certain eligibility criteria. This paper provides a detailed examination of the legislative structure and objectives of the EPF Act and the EPS, focusing on their implementation, coverage, and impact on employees. It delves into the mechanisms of contribution, accumulation, and disbursement of funds, and the roles and responsibilities of the Employees’ Provident Fund Organisation (EPFO). Special attention is given to the eligibility norms under EPS, the calculation of pensionable salary and service period, and the benefits provided to employees and their dependents in cases of death or disability.
The study also discusses recent policy amendments, judicial interpretations, and the challenges faced by employers and employees in complying with the provisions of the Act. It analyzes the effectiveness of the EPF and EPS in ensuring post-retirement security in an evolving economic and labor environment, especially in light of informal employment and digital work trends.In conclusion, the paper underscores the significance of strengthening the EPF framework to enhance coverage, ensure sustainability, and provide adequate benefits to India’s growing workforce. The integration of technology, better awareness, and consistent policy reforms are vital to addressing current limitations and expanding the reach of social security benefits under this important legislation.
Keywords: Employer, Employee, Contribution, Eligible Service, Retirement benefits.
INTRODUCTION
The mandatory legislative provision for industrial workers’ provident fund benefits did not exist until 1948. Some government departments and just a few progressive employers’ organizations implemented the act’s plans. A private measure was filed in 1948, but it was eventually withdrawn on the promise that the government would provide social security payments, as the Labour Investigation Committee in 1946 had highlighted. The government passed the Employees’ Provident Funds Act on March 4, 1952.
In order to give workers social security benefits, the Parliament passed the Employees’ Provident Funds And Miscellaneous Provisions Act, 1952, which is a significant piece of social security law. Currently, the Act and the plans outlined within it offer three different kinds of benefits: insurance coverage for Provident Fund members, pensionary benefits for employees and their families, and Contributory Provident Funds. The goal of this helpful statute was to establish a provident fund for the employees of factories and other businesses. When an industrial worker retires, provisions have been established for his better future and for the defendants in the event that he passes away while working. The employer is required by law to take the designated proportion of the contribution from the employee’s pay and matching payment under the Act.