REGISTERED NO . D. 221
The Gazette of India
EXTRAORDINARY
PART II- Section 2
PUBLISHED BY AUTHORITY
No. 31 ] NEW DELHI , WEDNESDAY , AUGUST , 22 , 1962 / SRAVANA 31 , 1884
RAJYA SABHA
The following Bill was introduced in the Rajya Sabha on the 22nd August , 1962: -
BILL NO . XIV OF 1962
A bill further to amend the Employees ' Provident Funds Act , 1952 .
BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows : -
and title com. mencement . . 1. ( 1 ) This Act may be called the Employees ' Provident Funds Short (Amendment ) Act , 1962 .
(2) It shall come into force on such date as the Central Gov- ernment may , by notification in the Official Gazette , appoint .
19 of 1952 .
2. In sub - section ( 1 ) of section 6 of the Employees ' Provident Amendment Funds Act , 1952 , in the proviso , for the words " Provided that " , the of section 6 . following shall be substituted , namely :-
"Provided that in its application to an establishment which is a factory employing fifty or more persons and engaged in an industry manufacturing-
( i) cigarettes , or
(ii ) electrical , mechanical or general engineering pro- ducts , or
( iii ) iron and steel , or
( iv ) paper other than hand - made paper ,
this sub - section shall be subject to the modification that for the words " six and a quarter per cent . " , the words " eight per cent . " shall be substituted:
Provided further that" .
(691) THE GAZETTE OF INDIA EXTRAORDINARY
[PART II 692
STATEMENT OF OBJECTS AND REASONS
The Employees ' Provident Funds Act , 1952 , which provides for the institution of compulsory contributory provident fund for em- ployees in factories and other establishments and which was initially applied to 6 industries , now covers 63 industries and classes of estab- lishments and over 31 lakhs of workers . The existing compulsory rate of provident fund contribution is 61 % of basic wages , dearness allowance and retaining allowance ( if any ) .
2. In pursuance of the recommendation in the Second Five Year Plan that the question of increase in the rate of provident fund contribution from 64 % to 8-1 /3 % should be studied , the Government set up , for that purpose , a Technical Committee consisting of some experts and representatives of employers and workers . After carrying out investigations in respect of the following industries engaged in the manufacture of-
( i) cigarettes ,
(ii ) electrical , mechanical or general engineering products ,
(iii ) iron and steel , and
( iv) paper,
the Committee have recommended , by majority , enhancement of the rate of provident fund contribution to 8 % in the above four industries except in the case of establishments employing less than fifty persons and establishments engaged in the manufacture of hand - made paper .
3. The Bill seeks to give effect to this recommendation.
GULZARILAL NANDA .
NEW DELHI ;
The 2nd August , 1962 .
THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
693
FINANCIAL MEMORANDUM
This Bill seeks to enhance the rate of provident fund contribu- tion from 64 % to 8 % of basic wages , dearness allowance and retain- ing allowance ( if any ) , under the Employees' Provident Funds Act , 1952 , in the following four industries : -
(i) cigarettes ;
( ii ) electrical , mechanical or general engineering products ;
(iii) iron and steel ; and
( iv ) paper .
The Act and the Scheme framed thereunder are applicable to establishments belonging to or owned by Government and such establishments , if any , engaged in the above industries will also have to bear the additional burden of enhanced rate of provident fund contribution . This may involve additional expenditure from the Consolidated Fund of India but the actual additional expenditure involved may be small as most of such establishments have provi- dent fund of their own at a higher rate . It is , however , not possible to estimate this amount .
S. N. MUKERJEE ,
Secretary .
PRINTED IN INDIA BY THE GENERAL MANAGER , GOVT . OF INDIA PRESS , NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS , DELHI , 1962