The Employees' Provident Fund Organisation, India, 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.
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 EPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 14th
March,1952. A series of legislative interventions were made in this direction, including the
Employees' Provident Funds & Miscellaneous Provisions Act, 1952. Presently, the following
three schemes are in operation under the Act:
"Employee" as defined in Section 2(f) of the Act means any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of the establishment.
All the employees (including casual, part time, Daily wage contract etc.) other then an excluded employee are required to be enrolled as members of the fund the day, the Act comes into force in such establishment.
"Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include
The cash value of any food concession;
Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment.
Any present made by the employer.