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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:
-
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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