PROVIDENT FUNDS , 1952
Applicability

Every establishment which is a factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed and Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf. (Infancy period of 3 years has been withdrawn by ordinance, w.e.f. 22-9-97)Any establishment employing even less than 20 persons canbe covered voluntarily u/s 1(4) of the Act

Eligibility

	Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment where salary is less than Rs. 6,500/- P.m. and optionally covered where salary exceeds Rs. 6,500/- p.m.
	Any person who is classified as disabled employee under new para 82 of the Employees’ Provident Fund Scheme, 1952 and working in the private sector, with monthly wages upto Rs. 25,000/- per month provided they are appointed on or after 01.04.2008
	Any person who is classified as International worker under new para 83 of the Employees’ Provident Fund Scheme, 1952.

Benefits

Employees covered enjoy a benefit of Social Security in the form of an unattachable, unwithdrawable (except in severely restricted circumstances like buying house, marriage/education etc. ) Financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefits include Employees’ Pension Scheme and employees’ Deposit Linked Insurance Fund.
Penal Provision

Liable to be arrested without warrant being  a cognisable offence. Defaults by employer in paying contributions or inspection / administration charges attract imprisonment up to 3 years and fines up to Rs. 10,000 (S.14) For any retrospective application, all dues have to be paid by employer with damage up to 100% of arrears.