EMPLOYEES PROVIDENT FUND ORGANISATION

Death benefits under EPF & MP

Act.
Duties and Liabilities of Employers

PREPARED BY EPFO REGIONAL OFFICE, PUNE (CANTT)

 APPLICABILITY OF EPF & MP Act 1952

The Employees’ Provident Fund & Miscellaneous Provisions Act 1952 Applies to the whole India including
Jammu & Kashmir.
• Every establishment which is a factory engaged in any industry specified in Schedule I & in which 20 or
more persons are employed should be covered under the Act.
• Coverage of the establishment can be taken under various sections :-
• 1(3)(a) & 1(3)(b) - Statutory Coverage – where 20 or more employees are employed.
• 1(4) - Voluntary Coverage – where 19 or less employees are employed.
• 2(A) - Coverage for Branch office to overcome administrative difficulties.
• Cooperative societies employing 50 or more persons and working without aid of power.
• Cinema theaters employing 5 or more persons.
 Death Benefits

 PF Accumulations
 (compounded interest upto the date of settlement of claim and not date of death.)

 Pension
 ((Widow/widower + 2 Dependent children (at a time)) or dependent parents.)

 EDLI-Insurance
 (Maximum upto 7 lakhs)
 Death While in Service

 PF and EDLI :- To the nominee, in case of no-nomination it is paid to all the surviving
family members in equal proportion.

 Pension : payable even if only 1 month’s contribution is received.

 - Married - Widow / widower + 2 dependent children
+ 1 Disabled Child (if any)
or – orphan pension (which is 3 times the children pension)

 Unmarried - Dependent Father, after his death, Mother.

Dependent Mother.
 Death Away from Service

 PF accumulations to nominee.

 No insurance is payable.

 Pension

 Past Service more than 10 years, same benefit as death while in service.

 Past Service less than 10 years

 Married :- last contribution received in less than 36 months prior to death, pension as per death while
in service.
 Unmarried :- Withdrawal benefit to parents.
 EDLI Scheme Details

Eligibility : Every Employee who becomes a member of E.P.F. Scheme is a member of EDLI Scheme.
The EDLI Contribution @0.5% of his Basic + D.A.(Max. 15,000/-) is to be borne/deposited by his
Employer per month along with regular PF Dues.
Benefit - A member who expired while in Service and whose name was on Muster Roll till his
demise...in such cases his/her Nominee is eligible to get EDLI Scheme Benefit called as
"ASSURANCE BENEFIT".
The EDLI Benefit amount is linked with his last Twelve months Average Wages and Average P.F.
Balance in his EPF A/c.
Upto 29.04.2021 the Assurance Benefit amount is maximum 6,00,000/- Whereas as Notification
Dated 29.04.2021 it is enhanced to Rs.7,00,000/- and Minimum is Rs.2,50,000/-.
The Nomination exercised under EPF Scheme is considered for EDLI Scheme while releasing
Assurance Benefit amount.
 EDLI Calculation

 Assurance Benefit Calculation example –

Last 12 months Average salary (x) 35 = 15,000 x 35 = 5,25,000/- (A) &

Last 12 Months Average Progressive PF Balance (×) 0.5 = Maximum1,75,000/- (B)
 Assurance Benefit Amount = (A + B) i.e, 5,25,000 + 1,75,000 = 7,00,000/-
 Now it is Maximum SEVEN LAKHS AND MINIMUM TWO LAKHS FIFTY THOUSAND. (w.e.f. 30.04.2021)
 General Instructions

 Get all the previous accounts transferred to the latest active account.

 E-nomination

 List of ‘surviving family members’ by employer must be exhaustive.

 Employer to remit upto the date of death or NCP days must be recorded in ECR if

employee is on unpaid leave due to illness.

 Bank account of beneficiaries in the pension disbursement banks.
 List of Pension disbursing banks in Pune

 Bank of India

 State Bank of India

 Bank of Maharashtra

 Punjab National Bank

 HDFC BANK

 ICICI BANK

 AXIS BANK
 E- Nomination

 The ultimate objective of maintaining a nomination (Form-2) is to ensure that funds are made
available in a timely manner to the nominee in the unfortunate event of the death of the
member. Hence it is important to ensure that every EPF / EPS member has provided information
of his/her nominee’s details to enable settlement of funds in a seamless manner.
 Employees' Provident Fund Organisation (EPFO) allows subscribers to submit their Provident
Fund (PF) account's nomination details online via its official portal- unifiedportal-
mem.epfindia.gov.in. 
 Only the nominated members can withdraw the EPF savings in the event of subscribers' sudden
demise.
 Subscribers can nominate more than one nominee and also fix the percentage of sharing among
all such nominees.
 E- Nomination (Rules)

 If member has a family at the time of making nomination, then it shall be in favour of one or
more persons belonging to his family for EPF/EDLI Schemes and any nomination which is already
made by such member in favour of any person not belonging to his family shall be invalid.
 A fresh nomination shall be made by the member on his marriage and any nomination made
before such marriage shall be deemed to be invalid.
 At the time of making nomination, if the member has no family, the nomination may be in
favour of any person or persons but if the member subsequently acquires a family, such
nomination shall be deemed to be INVALID and the member shall make a fresh nomination.
 E- Nomination (Pre-requisites)

• UAN should be activated.

• Verified Aadhar should be linked with UAN.

• Mobile number should be linked with Aadhar.

• Member UAN profile should be updated with all details including address and passport size

photograph.

• Passport size photos of all nominees (size 3.5 cm x 4.5 cm).

• Aadhar, Address & bank account details of all nominees.

E- Nomination (Family details entry)
 E- Nomination (Save the details)

• Select and then SAVE the EPF Nomination details submitted.

• Similar steps are to be followed in the case of EPS Scheme separately, like filling the nominee details and then SAVE
the details.
• Further both the nominations are to digitally signed through e-signature of the MEMBER
E- Nomination (E-signing)
 DEATH Related Benefits – Form-20

 In case of Death of a member while in service, eligible family members may apply for Provident Fund, Insurance

fund (EDLI) and Monthly Pension through Composite Claim Form(CCF).

 In case of married member, Spouse, Children & Dependent Parents are eligible for PF benefits. If unmarried,

Dependent Parents are eligible for PF benefits.

 Family members are eligible to receive PF & EDLI equally among themselves.

 If e-nomination has been already filed by the member, then Death claim (Form-20)can be filed by the eligible

family member through online mode also.

 It is mandatory to update the e-nomination by the subscribers to avoid any hardship to the family members /

legal heirs after the member’s death.

 Before applying for the claim, it is necessary to get transferred all the previous unsettled PF accounts.
 DEATH Related Benefits – Form – 5IF (EDLI)

 Those family members who are entitled for Death PF benefits, are also entitled for EDLI benefits.

 Minimum and Maximum assurance benefits payable under EDLI Scheme 1976 is Rs. 2.5 Lakhs & 7

Lakhs respectively which is effective from 29.04.2021

 This assurance benefit is available to the eligible family members, if the death of the member has

occurred while in service (ON ROLL) only.

 Since this benefit is linked with the PF contribution, the assurance benefit will be varying

accordingly.
 Documents requirements :- Same as that of Form-20
 DEATH Related Benefits – Pension -

 In case of married member, Spouse & Children (including legally adopted children) are eligible for

monthly Pension. If unmarried, Dependent Parents are entitled for Nominee Pension.
 In case of un-married member having no parents, pension will be released as per the e-nomination

filed by the member.

 Spouse is entitled to receive widow pension up to re-marriage or death whichever is earlier. On re

marriage Children pension is converted to Orphan Pension.

 Children / Orphan are entitled for Children / Orphan Pension up to 25 years of age.

 Children pension is available for two children at a time from oldest to youngest.

 Disabled Children pension to receive life long pension.

 DEATH Related Benefits – Documents required
Documents required (Form 20, 5IF & Pension) :
 Composite Claim form duly filled and attested by the employer
 Original death certificate of the deceased employee
 Cancelled Cheque / copy of Bank Passbook of all Claimants
 List of Surviving family members attested by the employer along with dependency of Parents
 Death certificate of Spouse in case spouse is already expired
 Guardianship certificate in case of minor children not having any natural guardian.
 Aadhar card (with DOB in ddmmyyyy), School leaving certificate (Preferable) of all Claimants
 Death while in service certificate for release of EDLI benefit
 For Pension claim bank accounts of eligible members should be in the same bank and branch.
 Designated bank in Pune region for Pension claim are SBI, PNB, BOI, BOM, HDFC, ICICI, AXIS.
 Three passport size photos of all eligible family members, attested by employer on back side
 Descriptive roll in duplicate by all eligible family members.
 Break in service details to be furnished by the employer.
 Certificate from Govt hospital is required in case of Disabled Children.
 Scheme Certificate if any, has to submitted in original along with the claim
 Online Grievance Redressal - EPFIGMS

 EPFIGMS is a customized portal with aim to redress the grievances related to the services
provided by EPFO.
 Grievance can be lodged by any stakeholder at any place using the link provided in EPFO home
page (https://epfigms.gov.in/)
 Members are required to lodge their grievance precisely enclosing all the supporting documents.
 Members are expected to raise grievances pertaining to the concerned field office by choosing
correct PF account number.
 On successful registration a unique grievance registration no. will be auto generated for future
reference.
Online Grievance Redressal
Grievance Portal
Grievance Portal
Grievance Registration - Member
Grievance Registration - Employer
Grievance Registration - Others
 On Line Registration of Establishments

• Registration for EPFO & ESIC for new Public & Private Limited Companies and One Person
Company has been stopped on Shram Suvidha Portal from 15.02.2020.
• With effect from 15.02.2020, new Public & Private Limited Companies and One Person
Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.gov.in
) through Spice + and AGILE-PRO e-forms) only at the time of incorporation.
• The establishments registered will be getting the EPF code no from the MCA portal and such
companies will have to comply EPF & MP Act only when they cross threshold limit of
employment.
• Establishments under Proprietary ship is still being registered through Shram Suvidha Portal
(https://registration.shramsuvidha.gov.in/user/login)
• However Establishments with incorporation date previous to 15.02.2020 can be registered
through Shram Suvidha Portal.
 Employer Responsibilities - Employer Related -

• Updation of Mobile no & e-mail id of the establishment in the employer login.

• Uploading of Digital signature / E-signature through the login followed by the submission

of REQUEST LETTER for further approval the same from the PF office.

• Updation of Form-5A with latest details of establishment and uploading the concerned

documents in the required format.

• Providing responses the E-Inspection notice, if any generated against the establishment.
 Employer Responsibilities - Employer Related -

• Uploading of ECR & Payment of Challan within 15th of the next month.

• Payment of any Auto generated Damages (Delay Payment) challan created.

• Uploading of Admin challans in case of NIL employees for a particular month.

• Upto date maintenance of Records like ECR & Challan copies for further records keeping.

• If contractor establishments are engaged by the Principal establishment, ensure that EPF dues
for all contractual employees are paid.

• Maintenance of records of all Contractual employees.

 Employer Responsibilities - Employee Related -

• Generate / Link UAN for new employee and upload KYC information like Bank and Pan.
• Approval of Basic details change requests received from the employees using digital signature
for onward dispatch to EPF office.
• Approval of KYC requests received from the members which they have updated from their
UAN login.
• Timely updation of Date of Exit of the left employees and also approval of any online transfer
request received from them.
• Updation and approval of any Missing Details of their existing employees.
• Allotment of UAN to an employee who has left the establishment before Jan 2014 as per the
request received from them.
 Employer Responsibilities - Member Dashboards -

• All the employers are expected to keep only the active employees in the ACTIVE MEMBER
dashboard.
• If any existing employee has left the establishment it is to be mandatorily updated in the
ACTIVE MEMBER list by entering MARK EXIT of the concerned employee.
• This will facilitate any future benefit like PMGKY, ABRY schemes and such other schemes
which will be declared by the Govt of India from time to time.
• Ensure the Updation of e-nomination by all employees so that their family members can avail
all the latest benefits completely through online mode and in trouble free manner.
• “MEMBER SERVICE DETAILS” option can be used for checking the previous service details of
any members of the establishment.
 Form - 5A & Coverage u/s 2A

 Form-5A (Ownership returns) is MANDATORY RETURN which is to updated from time to time with updated

information of business activity of the establishment.

 Update of form-5A is necessarily required for availing any benefits declared by the Govt of India from time to time.

 While updating document related to Address proof and Specimen Signature (pdf copy) and copy of Cancelled

Cheque (jpeg/png/bmp with less than 250kb size) are required to be uploaded. Further file is to be approved using
DSC/E-sign.
 For applying coverage u/s 2A, it is necessary to select “Branch/Division details” along with the option of “Several

units” and then provide the details of the proposed branch. After that the form is to be approved using DSC/E-sign.
 After completion of the above task, fresh application for allotment of Code number u/s 2A can be made by clicking

the option “Branches / Form 2A” under “Establishment” menu. For generation of fresh PF code no. u/s 2A,
successful submission of application form completed in all respect is required.
Form – 5A – Updation of Ownership details -
 E Inspection

 The prime purpose of E-inspection is to promote “Ease of Doing Business” policy of Govt. of
India.
 It facilitates the defaulter establishment to either declare the closure of business with
supporting documents or to disclose the amount in default with the proposal of remittance of
unpaid dues.
 E-inspection is restricted to the declared period of default.

 E-inspection response is to be filed on or before the specified time frame using the provided
facility only.
 If the response is not filed before the due date the field office may conduct physical inspection
besides initiating other actions against the concerned establishment.
E Inspection
E Inspection
E Inspection
E Inspection
 Employer Responsibilities – Contractual Employees

• Section 8A – Recovery of money by Employers and Contractors- empowers principal

employers to deduct contribution from contractors payments.

• Para 30(3) of EPF Scheme states “It shall be the responsibility of the principal employer to pay
both the contribution payable by himself in respect of the employees directly employed by
him and also in respect of the employees employed by or through a contractor and also
administrative charges”.

• Details of the Principal employer / Contractors can be seeded through the newly introduced
facility in the employer login.
 Principal Employer Portal -

Purpose of the new Principal Employer Portal is to provide the information of all the contractors

and their employees working under a specific principal employer.

The new portal allows to provide the details of contractor & their employees working under the

uncovered Principal Employer.

Through this portal, details of contractors & their employees can be updated on monthly basis.

Compliance of these employees are also displayed through this portal.

Facility is also given in case the Principal Employer is already covered under the EPF & MP Act,

1952.
Principal Employer Portal -
 Atmanirbhar Bharat Rozgar Yojana (ABRY)- Scheme details -

 The ABRY is open for the period from the wage month of October, 2020 to wage month of

June, 2021 for registration of new employees.

 The benefit shall be available for a period of twenty four wage months from date of

registration of new employee by the employer of eligible establishment.

 The monthly employee’s EPF contribution @ 12% of monthly wage which is liable to be

deducted from wage of employee will be paid by the Central Govt. in the EPF account of
new employees of eligible establishments. So there will be no deduction from wages of
new employee so he/ she will have a higher take home salary.
 Atmanirbhar Bharat Rozgar Yojana - Scheme details -

 The Central Government will provide subsidy for maximum 24 wage months in respect of new

employees engaged on or after 1.10.2020 and up to 30.06.2021, at the following scale:

 For Establishments employing up to 1000 employees’ in wage month September, 2020:
Entire employees’ contribution (12% of employees’ EPF wages) and employers’ contribution
(12% of employees’ EPF wages) of new employees
 For Establishments employing more than One Thousand (1000) employees’ in wage month
September, 2020: Only employees’ contribution (12% of employees’ EPF wages) of the new
employee.
 Atmanirbhar Bharat Rozgar Yojana - Scheme details -

 If ECR for September, 2020 is filed after 15.10.2020 but up to 15.12.2020, then

reference base of employee will be the number of Contributory UANs in the ECR for
the wage month of September 2020, or the number of employees in previous wage
month for which ECR was filed up to 11.11.2020, whichever is higher.
 Establishments already registered before the commencement of this Scheme shall

have to employ, above the reference base, minimum two new employees (if the
reference base of employee is less than or equal to 50) and minimum five new
employees (if the reference base of employees is more than 50)
 Atmanirbhar Bharat Rozgar Yojana - Scheme details -

To implement ABRY, EPFO has deployed electronic facility on Employer’s portal

Establishments have to declare reference base of employees and update Form 5A to register the

establishment and register its “new employees” on the Portal.

At the time of submission of the ECR on month to month basis, the employer shall be required to

certify correctness of information furnished electronically in ECR in the certificate and declaration
deployed with ECR.
During the preparation of challan, employer of eligible establishment shall continue to pay the EDLI

& EPF admin charges for all employees as well as EPF & EPS contribution for employees other than
new employees.
Atmanirbhar Bharat Rozgar Yojana
ABRY (Establishment Registration)
ABRY (Employee Registration)