Application of the provisions of Employees Provident Fund & Miscellaneous Provisions Act, 1952: Employees’ Pension Scheme, 1995 and Employees Deposit Linked Insurance Scheme, 1976 to Railways contracts.

Government Of India
Ministry Of Railways
(Railway Board)

No. 2012/CE-I/CT/O/22

New Delhi, Dated 14.12.2012.

Addressed To
(As per Mailing List ‘A’ Attached).

Sub: Application of the provisions of Employees Provident Fund & Miscellaneous Provisions Act, 1952: Employees’ Pension Scheme, 1995 and Employees Deposit Linked Insurance Scheme, 1976 to Railways contracts.

   1. Employees Provident Fund & Miscellaneous Provisions Act, 1952 (hereinafter called the ‘Act’) was enacted as a measure of social welfare legislation.

   2. The Contractors engaged in various contracts deploying workers across Indian Railways come under the purview of the Act. As per Section 1(3), read with Section 16 of the Act, being the principal employer, even though Indian Railways are not covered under the Act, the Contractors working with Indian Railways are covered under the provisions of the Act. The relevant provisions of the EPF Act and its Scheme on liabilities and duties of the principal employer are enclosed as Annexure-II.

   3. With a view for enabling Railways in implementation of the provisions of the Act, Ministry of Railways have decided that the following contents shall be added as Clause 55-B to the General Conditions of Contract, as per Addendum & Corrigendum Slip (ACS) enclosed as Annexure-I:

   ‘Clause 55-B to GCC: Provisions of Employees Provident Fund and Miscellaneous Provisions Act. 1952:

   The Contractor shall comply with the provisions of Para 30 and 36-B of the Employees Provident Fund Scheme, 1952: Para 3 and 4 of Employees’ Pension Scheme, 1995: and Para 7 and 8 of Employees Deposit Linked Insurance Scheme, 1976: as modified from time to time, wherever applicable and shall also indemnify the Railway from and against any claims under the aforesaid Act and the Rules".

   4. This issues with the concurrence of the Finance Directorate of Ministry of Railways.

   Please acknowledge receipt.

Annexure -I

Government Of India
Ministry Of Railways
(Railway Board)

  Addendum & Corrigendum Slip (ACS) to General Conditions of Contract

(Ref: Railway Boards letter no. 2012/CE-I/CT/O/22, dated 14.12.2012)

   Clause 55-B to GCC : Provisions of Employees Provident Fund and Miscellaneous Provisions Act. 1952:

   The Contractor shall comply with the provisions of Para 30 & 36-B of the Employees Provident Fund Scheme, 1952: Para 3 & 4 of Employees’ Pension Scheme, 1995; and Para 7 & 8 of Employees Deposit Linked Insurance Scheme, 1976: as modified from time to time through enactment of Employees Provident Fund & Miscellaneous Provisions Act, 1952, wherever applicable and shall also indemnify the Railway from and against any claims under the aforesaid Act and the Rules”.

Annexure - II

Employees Provident Fund Scheme, 1952:

30. Payment Of Contributions:

   (1) The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer’s contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in this Scheme referred to as the member’s contribution).

   (2) In respect of employees employed by or through a contractor, the contractor shall recover the contribution payable by such employee (in this Scheme referred to as the member’s contribution) and shall pay to the principal employer the amount of member’s contribution so deducted together with an equal amount of contribution (in this Scheme referred to as the employer’s contribution) and also administrative charges.

   (3) 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.

   (Explanation : For the purposes of this paragraph, the expression “administrative charges” means such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee, and in respect of which Provident Fund Contribution are payable as the Central Government may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses fix.)

36-B. Duties of Contractors:

   Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the recoveries of contributions in respect of employees employed by or through him and shall also furnish to him such information as the principal employer is required to furnish under the provisions of the Scheme to the Commissioner.

Employees’ Pension Scheme, 1995

   Para 3(1): From and out of the contributions payable by the employer in each month under Section 6 of the "Act” or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees’ Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee’s pay shall be remitted by the employer to the Employees’ Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the Employees’ Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.

   Para 3(2) : The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees’ Pension Scheme and credit the contribution to the Employees Pension Fund:

   Provided that where the pay of the member exceeds Rs. 6500 (Rupees Six thousand and five hundred) per month, the contribution payable by the employer and the Central Government be limited to the amount payable on his pay of Rs. 6,500 (Rupees Six thousand and five hundred) only.

Para 4 : Payment of Contribution:

   (1) The employer shall pay the contribution payable to the Employees’ Pension Fund in, respect of each member employed by him directly or by or through a contractor.

   (2) It shall be the responsibility of the principal employer to pay the contributions payable to the Employees’ Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

   Employees’ Deposit Linked Insurance Scheme, 1976:

Para 7 : Contribution:

   (1) The contribution payable by the employer and the Central Government under sub-section (2) and sub-section (3) of Section 6-C of the Act, shall be calculated on the basis of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance, if any, actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.

   Provided that where the monthly pay of an employee exceeds six thousand five hundred rupees, the contribution payable in respect of him by the employer and the Central Government shall be limited to the amounts payable on a monthly pay of six thousand five hundred rupees including dearness allowance, retaining allowance (if any) and cash value of food concession.

Para 8 : Mode of Payment of Contribution:

   (1) The contribution by the employer shall be remitted by him together with administrative charges at such rate as the Central Government may fix from time to time under sub-section 4 of Section 6-C of the Act, to the Insurance Fund within fifteen days of the close of every month by a separate bank draft or cheque or by remittance in cash in such manner as may be specified in this behalf by the Commissioner. The cost of remittance, if any, shall be borne by the employer.

   (2) It shall be the responsibility of the employer to pay 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.

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