A CRITICAL ANALYSIS OF THE PROVISIONS OF EMPLOYEES PROVIDENT FUND AND MISCELLENEOUS PROVISIONS ACT, 1952

Abstract

Employees Provident Fund Act was passed in India to provide social security and financial assistance to employees. EPF Act provide financial security, encourage employees to save for retirement, members can withdraw funds for specific expenses like education, marriage, or medical treatment, and even members receive interest on their contributions, which accumulates upon retirement, resignation, or death. Act is applicable to the area defined under the Act and also the establishments engaging 20 or more employees in it. It also stated that, once a member of provident fund, would always remain member of provident fund. Main misconception arise about the definition of workers under PF Act, contribution of employer and employees, which category of worker would fall down under the Act, etc. There are some practical difficulties fall down under EPF schemes such as calculation of contribution of employer and employee amongst the wages of workers, tax saving purpose, liability of employer, long term profitability, etc. Thus, the main misconceptions regarding workers cover under Act, employer-employee contribution, EPF schemes, etc. are verified, clarified and modified by High court and Supreme court through their judgments and make applicable the same.