Explain the Employee's Provident Fund & Miscellaneous Provisions Act of 1952

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What is the Employee's Provident Fund & Miscellaneous Provisions Act of 1952?

This act was established to benefit the worker and his/her dependants after retirement or demise. The Act applies the following:

1. All factories and mines (except coal mines and establishments with 20 or more employees.)

2. Any establishments with 20 or more employees. This may include nationalized establishments.

This Act is an important step in Indian social security because it provides support to workers in case of unexpected injury or demise. Injuries may include work-related accidents, sickness, maternity, etc. Benefits may include financial help and funeral expenses for insured workers.

Six types of benefits are provided by this Act:

1. Sickness benefit:

Insured persons may receive regular cash support during time of sickness, which may be confirmed by a doctor's letter. Furthermore, many conditions apply before a person can apply for a sickness benefit: A person cannot receive sickness benefits for the first two days, except if the person has fallen sick after 15 days. A sick person will not be paid for more than 91 days in any two consecutive pay periods. Persons cannot receive sickness pay when absent during a strike.

2. Maternity benefit:

These benefits apply to insured women and provide support for hospital fees, confinement, sickness or miscarriage. Again, many conditions apply: A woman is eligible if the contributions to her were paid for not less than 80 days in the immediately two contributing periods.

3. Disablement Benefit:

Insured persons with disablement arising from work-related accidents are entitled regular payments.

4. Dependants' Benefits:

If the insured person dies, financial benefits go to the person's family. These conditions apply:

a. 60% of the normal rate or 50% of the normal rate if there are two widows - until remarriage.

b. 40% of normal rate to sons till they reach 18 years of age.

c. 40% of normal rate to daughters till they reach 18 years of age.

d. 30% of normal rate goes to parents or grandparents.

e. 20% of normal rate goes to male dependants till they reach 18 years of age.

f. 20% of normal rate goes to female dependants till they reach 18 years of age.

5. Funeral Benefits:

A sum of Rs. 1000 is provided to the family of the demised employee for covering funeral costs.

6. Medical Benefits:

A person, and his/her family under certain conditions, earning less than Rs. 6500 per month is entitled medical benefits. Again, many conditions apply:

a. Payment for outpatient treatment or admitted patient.

b. Doctor's visit to patient at patient's residence.

This Act also covers all workers with wages less then Rs 5000 a month (includes basic wages+ DA+ retaining allowance + cash value of food).

Additional Readings:

1. Define the term 'Labor Welfare'
2. Theories about Conceptual Frame Framework of Labor Welfare
3. Basic Principles of successful Labor Welfare Programs
4. Explain the Factories Act of 1948
5. Explain the Employees State Insurance Act of 1948
6. Explain the Employees Provident Fund and Miscellaneous Provisions Act of 1952
7. List and Functions of Organizations that monitor Labor Welfares
8. Workmens Compensation Act of 1923
9. Employees Pension Scheme of 1995
10. Payment of Gratitude Act of 1972
11. Social Security System
12. Maternity Benefits Act of 1961
13. Welfare Measures at the Tata Iron and Steel Company

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