The correct answer is It applies to all employees with wages more than 15000.

• Once the act is applied to an establishment it shall remain applicable even if the number of an employed person falls below twenty.
• It is a compulsory contributory fund for the future of an employee and his family in case of his death.
• It applies to all the employees whose Wages (Basic + DA) is less than 15000 per month.
• The contribution of the employee into the fund is 12%.

Important Features of the Employees Provident Funds and Miscellaneous Provision Act

• The Act gives effect to the provisions of the Directive Principle as provided in Article 41 of the Indian Constitution.
• It is a compulsory contributory fund for the future of an employee and his family in case of his death.
• Applicability of the act

1. Industries employing 20 and more.
2. For theatres employing 5 and more.
3. And other industries mentioned in Schedule I of the EPF Act.

• Once the act is applied to an establishment it shall remain applicable even if the number of an employed person falls below twenty.
• It applies to all the employees whose Wages (Basic + DA) is less than 15000 per month.
• The act and schemes framed thereunder have been structured as self-applying and the employers are responsible to report the compliance of their own.
• The Schemes framed under it are

1. Employees’ Provident Fund (EPF) Scheme 1952.
2. Employees’ Deposit Linked Insurance (EDLI) Scheme 1976.
3. Employees’ Pension Scheme (EPS) 1995.

• The aim of these schemes is to inculcate among workers a spirit of saving and encourage employees to save a portion of their present earning for the future.
• EPF Scheme deals with retirement savings.
• EPS Scheme deals with a post-retirement pension.
• And EDLI Scheme deals with relief to family members in case of sudden death.
• Benefits of the Act

1. Tax-free savings with interest rate at 8% plus.
2. If you withdraw you’re PF after 5 years or after maturity then you are not liable for any tax.
3. Postretirement benefits with full EPF and EPF for a minimum of 10 years’ service.
4. In emergencies such as death, marriage, loan you can withdraw your PF fund.
5. In case of loss of income due to unemployment and if you are unable to find a new job for two months then you can withdraw your PF.
6. EDLI scheme provides relief to family members in case of sudden death.
7. With Universal Account Number (UAN) now you can transfer EPF from your old to new employer easily.

• Contribution rates are divided between employee and employer and they are as following

1. An employee contributes 12% to the EPF account.
2. Whereas the Employer contributes 13.15% into EPF, EPS, and EDLI.
3. Also, 0.65% of the 13.15% are charged as EPF admin charges with a minimum of 500 charges. They are paid by the employer
4. When an employee is 58 plus of age then his EPS contribution is moved to EPF.

• There are some businesses where employee contribution rate is 10% instead of 12% and employers contribution is also less, they are

1. They are businesses with voluntary coverage with less than 20 employee strength.
2. Sick businesses.
3. A business where financial year loss is greater than or equal to net worth.
4. Jute, Coir, Brick, Guar gram.

• There is a provision of the Central Board and Central Provident Fund Commissioner is the CEO of the board.
• Dispute settlement for the parties is as provided in the Industrial Dispute Act of 1947.