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Issue of Relaxation order under the Employees' Provident
Fund & Employees' Deposit Linked Insurance Schemes :
Before granting exemption to an establishment the application of the establishment
and also the rules of the Fund are required to be scrutinised for considering the
grant of exemption. As it may take some time to process the application, the Regional
Provident Fund Commissioner / Central Provident Fund Commissioner as the case may
be, may issue a relaxation order to the establishment specifying that the establishment
may not, pending grant of exemption:
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Submit the returns required to be submitted under the Scheme.
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Remit the dues to the Fund
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Transfer the accumulations from the existing Fund to the C.B.T., Employees' Provident
Fund.
The Regional Provident Fund Commissioner / Central Provident Fund Commissioner may
also impose certain other conditions on maintenance of accounts, enrolment of members,
Investment of monies, payment of inspection charges and submission of returns etc.,
in the Relaxation Order. For all practical purposes the establishment under Relaxation
Order shall be treated on par with the establishment granted exemption. The Relaxation
Order is issued under para 28(7) of the Employees' Deposit Linked Insurance
Scheme.
Exemption from the operation of Employees'
Provident Fund Scheme , 1952:
Exemption from the operation of Employees' Provident Funds to an establishment as
a whole, is granted either under Section 17(1)(a) or under Section 17 (1)(b) of
the Act.
Exemption under Section 17 (1)(a):
The grant of exemption to an establishment under Section 17 (1)(a)
is considered where the rates of contribution are not less favourable then the statutory
rates provided in Section 6 of the Act and the employees are also in enjoyment of
other PF benefits which are also on the whole not less favourable than the benefits
provided under the Act / Scheme. The authority to grant this exemption is the 'Appropriate
Government', as defined in Section 2(a) of the Act ( Central / State Government,
as the case may be ) and notified in Gazette.
Exemption under Section 17(1)(b):
Exemption under Section 17 (1)(b) is granted where the employees
in establishment are in enjoyment of benefits in the nature of Provident Fund, Pension
or gratuity which are separately or jointly on the whole not less favourable than
the benefits provided under the Act / Scheme. It is granted by the 'Appropriate
Government ', through a notification in the gazette.
Payment of Inspection charges :
The establishment to which Relaxation Order is issued / exemption is granted
is required to pay Inspection charges @ 0.18% of total wages on which Provident
Fund is recovered, to the Regional Provident Fund Commissioner concerned by deposit
in cash / local cheque in S.B.I. to the credit in A/C No. 2 of the Employees' Provident
Fund, through prescribed challan.
Exemption of an Employee : (Employees' Provident Fund Scheme ,52 )
Section 17 (2) read with para-27 of the Employees' Provident Fund
Scheme provides for exemption from the operation of all or any of the provisions
of the scheme to an individual employee. It is granted by the Regional Provident
Fund Commissioner on the receipt of application in Form-1 from the employee. The
exemption is granted where an employee is entitled to benefits in the nature of
Provident Fund, gratuity or old age pension and such benefits separately or jointly
are on the whole not less favourable than the benefits provided under the Act and
Scheme.
The re-election is permitted only once on each account.
Exemption of a Class of Employees : ( Employees' Provident Fund Scheme ,52
)
Section 17 (2) read with para-27A of the Employees' Provident Fund
Scheme provides for grant of exemption from the operation of all or any of the provisions
of the scheme to a class of employees. It is granted by the appropriate Government
on the receipt of application from the employer. The exemption is granted where
employees are entitled to benefits in the nature of Provident Fund, gratuity or
old age pension and such benefits separately or jointly are on the whole not less
favourable than the benefits provided under the Act and Scheme.
Wherever the exemption to a class of employees is granted, the employer is required
to submit a monthly return to the Regional Provident Fund Commissioner in the prescribed
Performa. The due date for submission of this return is 25th of the month following
that to which it relates. The employer is required to pay Inspection Charges @ 0.18%
on wages of employees exempted and invest the Provident Fund monies in accordance
with the pattern of investment prescribed by the Central Government. The class of
employee may again be permitted to join the statutory fund. The re-election is permitted
only once on each account.
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