Contributions are to be made at the rate of 12% of the wages by the employers with the employee contributing an equal amount.

Any employer who contravenes or fails to comply with the provisions of this law is liable to pay a penalty and punished with imprisonment.

It is social welfare legislation enacted with the objective of providing certain benefits to employees in case of sickness, maternity and employment injury.

This law is applicable to establishments where 10 or more persons are employed. All employees, including casual, temporary or contract employees drawing wages less than INR 21,000 per month, are covered under this law.

Employees’ Provident Fund Organisation is the registering authority under this law.