“Employer” means any person who employs or on whose behalf any other person employs any workman and includes a body of employers (whether such body is a firm, company, corporation, local authority or trade union), and any person who on behalf of any other person employs any workman, and includes a competent authority of a business undertaking vested in the Government under any written law, the legal heir, successor in law, executor or administrator and liquidator of a company; and in the case of an unincorporated body, the president or the secretary of such body, and in the case of a partnership, the managing partner or manager.
“Employee” means any person who has entered into or works under a contract with an employer in any capacity, whether the contract is expressed or implied, or oral or in writing, and whether it is contract or service or of apprenticeship or a contract personally to execute any work of labour, and includes any person ordinarily employed under any such contract, whether such person is, or is not in employment at any particular time; employed under any such contract, whether such person is, or is not in employment at any particular time.
Eligibility & Payment of Contribution
Irrespective of the nature and the category of your business, an employer of even one employee legally bound to pay contributions to the Fund except the Govt. Dept. who has pensionable employees, Public Corporations, Authorities, Boards, Local Authorities etc. and the private sector organizations, Institutions are liable to pay contributions to the Fund.
Organizations, Institutions & persons except from the payment of contributions
Domestic servants in any household
Social Service Institutions which provide training to orphans etc.
Charitable Organizations which less than 10 employees if the number of employees over 10 such institutions are liable to pay
Institutions carried out by family matters
Institutions giving industrial training to orphans, deaf etc.
Employers Covered by the ETF Act
All employers in public sector institutions whose employees are not eligible to the Govt. Pension Scheme.
All employers in the private sector irrespective of the no. of employees employed.
All employers in public and private sector who are maintaining approved Provident Fund accounts for their employees.
The Act does not applicable for Govt. & Local Govt. employees other than the employees do not eligible for Govt. pension.
Establishments where the Directors and Partners are the only members of the business.
Calculation of the Contributions
Every employer has the responsibility of paying the contribution for each & every employee. No employee can deduct the contribution from the employees earnings/salary.
Total Earnings per Employee
The Total earnings should include the following
Salary, wages or Fees
Cost of Living allowance, Special Living allowance and other similar allowances
The cash value of cooked or uncooked food supplied by the Employer to the Employee determination of such values will eventually be made by the Commissioner of Labour
Any other kinds of remuneration that may be specified
Payments in the form of discounts (commissions), piece rate payments and contract b
3% of the total monthly earnings (not to be deducted from the employee’s monthly salary / wages)