STATUTORY BENEFITS

Of HCL Technologies Business Services

Submitted by

Bhupendra Singh BBA(Human resource)

Acknowledgement

Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one can make a simple expression of gratitude.
Industrial training is an integral part of any Master of Business Administration program and for that purposes I had joined a company what else can be as good as HCL technologies Ltd BPO Services, India's premier information enabling company. I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in HCL technologies Ltd BPO Services. No amount of written expression is sufficient to show my deepest sense of gratitude to them I would like to express my gratitude to all those who gave me the possibility to complete this project. I would like to thank Mr.Ramesan to give me opportunity in hcl and Priya Nair for providing me her valuable time as well as great deal of information. I have further more to thank Ms. Anjali Joshi for her time as well as her valuable advice regarding my way forward. . I also have to thank Mr. Hardik Sharma, Ms. Pramila Kumari, Mr. Raj Kishore Prasad, and Ms. Aparna Banerjee for teaching and assisting me in my work and for making these few a weeks a great learning experience. Ms. Priya Nair for giving me the internship in the company At last but not the least I would like to thank my parents who provided me will all their love, support and means to carry out my studies of which this project is a part.

Abstract

The provident fund was originally set by an act of parliament known as Employees Provident Fund Act, 1952 in a bid to provide monetary security to employees when they retire. Too often, people find that the twilight years of their life are years marked by financial inadequacy and dependency on relatives or children. The provident fund is designed to provide the retiring individual with dignity and security. However, it has, over the years, developed into a broad plan for social security which covers the retirement, buying houses, medical expenses and related expenses The service industry, from fast food to business consulting, has long lived by the mantra that serving the customer is the only thing that matters. As a result, customer need is placed above all others often at the sacrifice of employees, managers and administrators. HCL Technologies, one of Indias fastest growing IT services companies, which is also rated as No. 1 employer in India, has embraced a new strategy Employee First This approach places the needs of employees before the needs of customers. This seemingly unreasonable strategy has provoked a sea-change at the company, and surprisingly, greater customer loyalty, better engagements and higher revenues. To make the Employee First concept work, HCL has launched a variety of internal initiatives designed to give employees more personal responsibility for the companys service offerings and also a voice with upper management. HCLs enlightened approach to employee development focuses on giving people whatever they need to succeed. One of these initiatives is the Employee HR services or EHS. For this project, I have worked with the EHS team in the statutory benefits of the company. I worked on a day-to-day basis assisting, learning and analyzing various provident fund, pension formalities and processes carried out by the team. I also looked into its role and impact in this project.

Table of Contents

1. Preface.. 5 2. Introduction... 8

3. Materials and Methods11

4. Results and findings12 5. Conclusion and recommendations.. 35

6. Future Prospects.41 7. Appendices.. 42

8. References62

Preface
Business Process Outsourcing (BPO) is a form of business process which involves the contracting of operations and responsibilities of specific business functions or processes to a third-party. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of services. Given the proximity of BPO to the information technology industry, it is categorized as an Information Technology Enabled Service or ITES. Knowledge Process Outsourcing (KPO) and Legal Process Outsourcing (LPO) are some of the sub-segments of BPO industry. BPO or Business Process Outsourcing is one of the sunshine sectors in India. According to statistics by World Bank and Goldman Sachs, an investment banking firm in India will attract about 80% of the worlds BPO industry by 2020. BPO is one of the most outperforming sectors in the Indian economy. Services, which account for almost 35% in Indias productivity has BPO at the heart of the growth. Over the last ten years, Business Process Outsourcing (BPO) has proven to be a sunrise industry in India due to its talented, skilled personnel and its geographically strategic location. India has drawn attention and investment from multiple international stakeholders who are looking to hive off their business processes. Recent times have witnessed a dramatic change in the countrys economic environment owing to the presence of fierce competitors like Vietnam and the Philippines as well as factors such as recession and hike in salaries. Despite this, the BPO industry appears to be churning out better-than-expected performances, all the same growing at the steady pace. This is evident in a recent survey conducted by the National Association of Software and Service Companies (NASSCOM), which has estimated a 47% rise in IT-BPO export revenues for Financial Year 200910, thereby reaching US$ 50 billion, approximately. Other factors contributing to sustained growth include continued domestic demand, recessionary trends in the West and the inevitable cost savings that BPO still gives enterprises. Moreover, some BPOs in India have expanded to other countries in order to leverage cost savings. The domestic BPO segment in India is estimated to increase to 65 billion US dollars by 2010. India hosts around 200 call centres that have a turnover of 2 billion USD and a workforce of 150,000 skilled personnel.

HCL Enterprise is a 34-year-old leading Global Technology and IT enterprise, with USD 5.0 billion revenue, 64000 professionals and operations spanning 26 countries HCL BPO, a division of HCL Technologies Limited started its venture early in 2001 and is now a dominant player in the BPO field drawing revenue of USD 232.15 Million. With over 11,400 professionals operating out of India, UK and USA, HCL BPO runs 21 delivery centres HCL Enterprise has grown to become what it is today under the strong leadership and guidance of Shiv Nadar (Founder, Chairman and Chief Strategy Officer). HCL Enterprise comprises two companies listed in India, namely HCL Infosystems (www.hclinfosystems.in)

and HCL Technologies (www.hcltech.com). HCL Infosystems deals with hardware, system integration, network and ICT distribution, solely for the Indian market. HCL Technologies on the other hand, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 23 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). HCL Technologies caters to the global market in areas like product engineering, research & development, enterprise & custom applications, infrastructure management, and BPO services.
1. GENPACT: Founded in 1997, Genpactthe erstwhile-outsourcing wing of GE Capital leads the pact. Having formed an independent entity in 2005, Genpact has a network in 13 countries of more than 30 operations centers, including leading enterprises such as Nissan, Wachovia, Hyatt and GE. It offers a wide range of services including finance, IT infrastructure, supply chain management and analytics and hence is guaranteed to stay at the top of the list for years to come. With a workforce of more than 37,000 employees, Genpacts revenue for the year 2008 stood at $1040 million. 2. WNS Services: Principally distinguished by its deep domain expertise and end-to-end service offerings, WNS Global Services occupies the second place in this list. Based in Mumbai, Warburg Pincus is its main investor firm. WNS boasts of 215 plus global clients. Established in 1996, this Nasdaq-listed company has been serving numerous industries such as healthcare, manufacturing, retail, distribution, insurance and travel. At present, WNS has more than 21,000 persons working for it and has clocked revenues of about $539 million as of 2008. 3. IBM DAKSH: The brainchild of four ambitious and talented professionals, IBM Daksh grew from a relatively small enterprise to a global hub that employs more than 30,000 people today. Celebrated for its excellent leadership and empowering vision, IBM Daksh has been effortlessly managing business processes for its international clientele over the past 5 years. As a result, it has won accolades for its outstanding performance, including the Most Respected BPO Company in India by Business World. The company has 25 service delivery centers in India and the Philippines. While IBM Daksh is primarily a solutions provider for various industries such as financial services, communication and distribution, it also offers its expertise to the hospitality and travel sectors. 4. WIPRO BPO: Spectramind was acquired by Wipro in 2002 and renamed as Wipro BPO Solutions, which has since then carved a niche for itself in the outsourcing industry. The company has been rated one of the Best Employers in India by the Best Employers Hewitt Survey in 2007. The HQ of Wipro BPO is based in Bangalore, with over 19,000 employees committed to providing high quality services to its customers. As of 2008, the company generated revenue of approximately $395 million, thus giving it recognition as one of the top 10 BPOs in India. Wipro BPO offers financial and accounting services, HR services and knowledge services to industries including insurance, healthcare, telecom, travel and hospitality, among others. 5. TCS BPO: One of the key players in the present-day outsourcing industry, TCS BPO offers various services in the realm of healthcare, telecom, travel, media, KPO and banking, among others. TCS BPO has won accolades for its services and performances as a result of which it was named one of the worlds top BPO providers by the International Association of Outsourcing Professionals, in 2006. Although its headquarters is based in Bangalore, it is spread across the heart of the country with

branches in Goa, Pune, Mumbai, Lucknow, Gurgaon and Hyderabad. TCS BPO Its clientele includes 132 entities that span over 32 countries. At the end of fiscal year 200809, the BPO contributed around Rs 1,900 crores to the companys revenues. 6. FIRSTSOURCE SOLUTIONS: Firstsource was established in 2001 and was formerly known as ICICI Onesource. Ranked among the top 10 ITES companies in 2007 (by Nasscom), it is a leading player in global business process management. It is commendable to note that Firstsource is the first pure play BPO company in the world to secure ISO 20000 and ISO 27001 certifications. It has numerous leading global clients to whom it offers BPO services spanning customer care, billing and collections, business research and analytics and customer acquisition. Among several notable clients, Firstsource boasts of a clientele subsuming FTSE 100 media companies, 3 of the 5 largest US banks, top 5 UK banks and 2 of the worlds largest telecom companies. 7. ADITYA BIRLA MINACS: A global IT business solutions company and subsidiary of Aditya Birla Nuvo, Aditya Birla Minacs has over 26 years of experience in offering BPO solutions to over 15 Fortune 500 companies. Nasscom 2006-07 ranked the company as Indias third largest BPO, by export revenues. With a primary focus on three areas, namely contact centre solutions, integrated marketing services, and knowledge process outsourcing, Aditya Birla Minacs has employed over 13,000 employees across its facilities in the world. 8. AEGIS: A leading player in customer care and acquisition for over thirty years, Aegis has numerable Fortune 500 clients to whom it provides immeasurable support by way of customer interaction, back office and other routine business processes. Aegis has been recognized as eighth among the top 15 BPO exporters for 2008-09 by Nasscom. It operates out of 40 locations spread across the globe with complete support from a 39,000-strong staff strength. Its headquarters are based in Mumbai. Essar Global Limited, its parent company, is an $18 billion group well established in 130 countries.

9. Infosys Technologies: Infosys Technologies set up Infosys BPO in April 2002 as its
business process outsourcing subsidiary. With a focus on integrated end-to-end outsourcing through lesser costs, Infosys BPO holds high ranking among the top BPO companies of India. I

Introduction

Many organisations are finding innovative ways to grow in todays competitive market. However, a few companies are sustaining their market leadership position by leveraging on one of their most valuable assets human capital. In most of the organisations, the Human Resource function (HR), which is entrusted with managing this asset, spends most of its time on transactional, non-core tasks. Other key challenges faced by HR include staying current with changing compliances, adjusting to dynamic business needs, coordinating with different HR vendors on a regular basis and more. These things to a very significant extent reduce the time HR team spends on strategic priorities that critically impact the bottom-line. HCL HRO, the next generation of comprehensive and integrated HRO services is a one-stop-shop that can help you transform your HR into a strategic one. Our HRO offering blends the perfect mix of HR domain expertise, best practices & processes, best-in-class

IT infrastructure and HR ERP platforms. Our suite of integrated HRO services can help you streamline & enhance your HR processes and improve the quality of service to your employees. We partner with our clients to bring about business transformation through continuous improvements to enhance the process efficiency.

EHS An Introduction
EHS stands for Executive HR Services It is a corporate function at par with other support functions like HR, Finance, and S&M etc. In HCL, keeping in mind the Employee first initiative instead of a per say HR department an EHS department was formed to streamline and resolve issues of employees expeditiously at a more interactive level. The EHS team takes care of employees from the point they join till they exit.

JOINING VERIFICATION SAP HIRING

F&F

STATUTORY

EXIT FORMALITIES

PAYROLL

EMPLOYEE WELFARE

Purpose To provide a Single Window to employees to take care of majority of their day-to-day HR related queries with a WE CARE attitude. There were certain duplication of efforts at HR, Finance and Administration. There was a need to optimize the resource utilization from the company point of view. There was a need for a single group focusing on policy implementation and independent group for creating the policies. There was a need to create a team with multi discipline expertise to handle the employee transactions

HR

Resource Management Policy Formulation Performance Management Career & Succession Planning Employee Grievance Mgmt. Reward & Recognition Employee Engagement

Day to day Employee Transactions Joining Uniform Policy Implementation Feedback/input collection on policies Payroll Processing Exit Management SLA Driven SwS Statutory & Regulatory Compliance

EHS Mission To provide efficient and high quality services to employees while adhering to internal control norms by consistently achieving a. Pre-defined benchmarks for Service Level in respect of each type of service; and b. Zero defect in adhering to pre-defined internal norms and regulatory requirements

In this report contains the role played by EHS in the exiting formalities of the company.

Exiting process at HCL

Exiting Process

Exit Formalities

F&F

PF

Resignation - This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities; a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country. So, an employee resigns for: 1) 2) 3) Better compensation and benefits Higher position / level Challenging role

4) To move from an unknown or lowly branded company to a highly branded and reputed company (Top 10 or 25 companies in the world etc) 5) For foreign or international assignments etc.

Termination - Usually, this process is perceived negatively by employees. In termination, an employer uses his right to terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are: 1) Non-Performance 2) Indiscipline 3) Misconduct 4) Insubordination 5) Theft and etc Absconding - This is one of the most unethical, unexpected and unprofessional way to terminate the contract of an employment. In this, on one fine day an employee decides not to go to work. He does not care to hand-over his stuff. In case an employee decides to abscond (or run-away), it becomes very important to understand his motives and intentions. Employees can abscond in either or all of the below mentioned circumstances / situations:

Employee Separation in HCL

FLOWCHART

1. Firstly, the employee recognizes his need to leave the company after which he submits his resignation letter to his immediate superior or manager. 2. The reporting manager before accepting the resignation has a 1-on-1 interview with the employee to see if there is any scope of retaining the employee. If he is able to convince the employee to stay then the employee withdraws his resignation and resumes work as decided. 3. However, even after the session the employee still insists on leaving then his resignation is accepted by the reporting manager and forwarded to Line HR(which is the HR in his respective center) 4. The Line HR again has a 1-on-1 with the employee on a second attempt to retain him and gain feedback from the employee. 5. If the employee still wants to leave, his resignation is accepted and depending on the nature of the resignation (with notice / without notice) his full and final formalities as initiated at the centre and his salary is put on hold. Notice period of the employee varies with his designation. 6. Before the employee starts with his F&F formalities at the centre he has to fill up the MoT (Moment of Truth) it is somewhat like an online exit interview where the employee fills up the form providing feedback and reasons to the company. 7. Then, the employee fills the F&F form at the centre and submits it to his HR. 8. The center then forwards the form to the EHS team for final clearing and separation. 9. The EHS team processes the form, updates the SAP and makes the payroll clearance. It also calculates the necessary recoveries and payables and forwards them to finance. 10. The finance team then works on the settlement provided by EHS, they segregate the form centre wise and processes them, after which they are sent to a signing authority who authorizes the issuing of cheque for the settlement of the employee or if there is a recovery then the employee has to give a demand draft of the amount to be recovered to the EHS team before receiving his resignation letter. Finally, once the F&F is done the employee is handed over his resignation letter and his cheque (if applicable).

Materials and Methods

Most of the data I collected and included in my report was through secondary sources provided to me by the company. Primary data included in the project was in the form of my first hand experience, understanding and analysis of the working within the organization and my interaction with the employees and my guide. Ive made use of flowcharts in order to make the understanding of the processes easy and presentable I also included some documents regarding various exit procedures to help clarify the process in the project. I have started with explaining about the organization and the general terminologies in terms of general business practices, then relating these to the company and highlighting its own practices, then moving into individual component and processes of the working of the organization with regard to my topic. My personal challenge was not just be to analyze and understand the current processes and policies followed by the company, but also to come up with possible recommendations and suggestions for the company to help improve its current working state or to help achieve its desired working state. The suggestions and analysis in the project is personal and entirely based on my experience and observation within the organization.

Results and Findings

Attrition in BPO industry

Unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death" Staff attrition rate and workers' absenteeism means significant costs to the organizations. In many organizations, workers are leaving even after the organization is spending huge amount of money for the benefits of the workers. Many organizations accept workers' mobility as part of doing their business, but it is a matter to be regretted. In these circumstances, the HR Department has got a significant role to play The IT enabled services (BPO) industry is looked upon as a big employment generator. It is however no easy task for HR in this sector to bridge the ever increasing demand and supply gap of professionals. Unlike his software industry counterpart, the BPO HR is not only required to fulfill this responsibility, but also find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the issue of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for HR is however the high attrition rate. The much hyped "work for fun" tag normally associated with the industry has in fact backfired, as many individuals (mostly fresh graduates), take it as a pas-time job. Once they join the sector and understand its requirements, they are taken aback by the long working hours and later monotony of the job starts setting in. This is the reason for the high attrition rate as many individuals are not able to take the pressures of work. The toughness of the job and timings is not adequately conveyed. Besides the induction and project training, not much investment has been done to evolve a continuous training program for the agents. Motivational training is still to evolve in this industry. But, in all this, it is the HR who is expected to straighten things out and help individuals adjust to the real world. I believe that the new entrant needs to be made aware of the realistic situation from day-one itself, with the training session conducted in the nights, so that they get accustomed to things right at the beginning. The high percentage of females in the workforce (constituting 30-35 percent of the total), adds to the high attrition rate. Most women leave their job either after marriage or because of social pressures caused by irregular working hours in the industry. All this translates into huge losses for the company, which invests a lot of money in training them. Many experts are of believe that all these challenges can turn out to be a real dampener in the growth of this industry. This only raises the responsibility of finding the right candidate and building a conducive work environment, which will be beneficial for the organization. Pf is the savings of employee Pf is the long term benefit for the employee Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry e.g.: beedi) EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused

 On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest. Pension to Member Pension to Family (on death of member) Scheme Certificate This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at least 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service) Withdrawal Benefit if not eligible for pension, member may withdraw the amount accumulated in his pension account the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account) No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund. Pension calculation is similar to that of Govt. Employee. It provides benefit against loan Pension to Member Pension to Family (on death of member) Scheme Certificate

This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at least 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service) Withdrawal Benefit

if not eligible for pension, member may withdraw the amount accumulated in his pension account the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)

STATUTORY BENIFITS
PROVIDENT FUND & PENSION

ESI

GRATUITY

SUPER ANNUTION

Provident fund It is the fund which comprises of the contributions made by the employee service period with an equal contribution by his employers. It is calculated as a percentage of his salary, says 10%, and is returned to him on his retirement or his exit from the company. There are different types of provident funds. They are:Statutory Provident Fund - All industries and establishments that employ more than 20 or more people are bound to contribute towards this fund. This fund covers those whose income is below a certain limit prescribed by the government. Voluntary Provident Fund: - The contributions to this fund are voluntary. This is applicable for all those whose salary is beyond the limit specified by the government. This is applicable if the employee covered under EPF is willing to increase his contribution towards PF. Recognized Provident Fund: - This is a fund wherein the contributions are recognized for income tax calculations. Unrecognized Provident Fund: - As the name suggests, contribution to these funds are not recognized by the by the Commissioner of Income tax in accordance with the rules contained there in the Act unlike a statutory provident fund, recognized provident fund or public provident fund. Public Provident Fund: - The Central Government has established the Public Provident Fund for the benefit of general public to mobilize personal savings. A salaried employee can simultaneously become a member of employees provident fund and the public provident fund. This kind the provident fund is designed for self-employed people like doctors, lawyers, engineers, businessmen etc

A person who is a member of a provident fund can withdraw money from fund up to a maximum ceiling set a by the government after attaining a certain age, say 54, or at actual retirement. In addition there are, generally, provisions for withdrawal of the amount, such as, acquisition or construction of property or repayment of loans taken for the same, treatment of Illness, for marriage expenses, for purchase to alleviate the hardship caused by handicap

Provident Fund as per Indian Government

Employees Provident Fund Scheme 1952 defines the rules, definitions and working of EPF in India. The schemes of provident funds act as a social security measure and are meant to induce employees to save a portion from their present earning for their future. This scheme comes under the Employees Provident Funds Act, 1952. It states the following: Employee Definition: "Employee" as defined in Section 2(f) of the Act means: Any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer, and includes any person employed by or through a contractor in or in connection with the work of the establishment. Membership: All the employees (including casual, part time, Daily wage contract etc.) other then an excluded employee are required to be enrolled as members of the fund the day, the Act comes into force in such establishment. Basic Wages: "Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include a. The cash value of any food concession; b. Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment. Any present made by the employer Excluded Employee: "Exclude Employee" as defined under pare 2(f) of the Employees' Provident Fund Scheme means an employee who having been a member of the fund has withdraw the full amount of accumulation in the fund on retirement from service after attaining the age of 55 years; Or An employee, whose pay exceeds Rs.5000 per month at the time, otherwise entitled to become a member of the fund.

Employee Provident Fund Scheme: Employees' Provident Fund Scheme takes care of following needs of the members: (i) Retirement (ii) Medical Care (iii) Housing (iv) Family obligation (v) Education of Children (vi) Financing of Insurance Polices How the Employees' Provident Fund Scheme works: As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:

Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97. Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction, Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.

Employees' Provident Fund Interest rate: The rate of interest is fixed by the Central Government in consultation with the Central Board of trustees, Employees' Provident Fund every year during March/April. The current interest rates for the Employee Provident Fund (EPF) are at 8.5% p.a. This rate has been maintained since 2005-06. As we know that, every year the rate is reviewed and if possible it will be revised. But, the current rate is maintained for the past six years in a row. It is expected to be the same interest rates for the following financial year 2010-11. It will be decided on the coming Feb 26, 2010 meeting. They have a plan to increase the rate to 8.75%, but would face a deficit of Rs 426.53 crore if it paid out a return of 8.75%. So, there wont be any changes in the rates. Benefits: A) A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 year. Full amount in provident fund can also be withdrawn by the member under the following circumstance:

A member who has not attained the age of 55 year at the time of termination of service. A member is retired on account of permanent and total disablement due to bodily or mental infirmity. On migration from India for permanent settlement abroad or for taking employment abroad.

In the case of mass or individual retrenchment

B) In the case of the following contingencies, the payment of provident fund be made after complementing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member:

Where employees of close establishment are transferred to other establishment, which is not covered under the Act: Where a member is discharged and is given retrenchment compensation under the Industrial Dispute Act, 1947.

Withdrawal before retirement: A member can withdraw up to 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuation whichever is later. Claim application in form 19 may be submitted to the concerned Provident Fund Office. Accumulations of a deceased member: Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office. Transfer of Provident Fund account: Transfer of Provident Fund account from one region to other, from Exempted Provident Fund Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer Application in form 13 may be submitted to the concerned Provident Fund Office. Nomination: The member of Provident Fund shall make a declaration in Form 2, a nomination conferring the right to receive the amount that may stand to the credit in the fund in the event of death. The member may furnish the particulars concerning himself and his family. These particulars furnished by the member of Provident Fund in Form 2 will help the Organization in the building up the data bank for use in event of death of the member. Annual Statement of account: As soon as possible and after the close of each period of currency of contribution, annual statements of accounts will de sent to each member through of the factory or other establishment where the member was last employed. The statement of accounts in the fund will show the opening balance at the beginning of the period, amount contribution during the year, the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balance at the end of the period. Member should satisfy themselves as to the correctness f the annual statement of accounts and any error should be brought through employer to the notice of the correctness Provident Fund Office within 6 months of the receipt of the statement

Advantages
Broadly we may categorize the benefits into three: Provident Fund Benefits | Pension Benefits | Death Benefits 2. Provident Fund benefits Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry e.g.: beedi) EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest.

3. Pension Benefits Pension to Member Pension to Family (on death of member) Scheme Certificate This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service) Withdrawal Benefit if not eligible for pension, member may withdraw the amount accumulated in his pension account the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account) No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund. Pension calculation is similar to that of Govt. Employee

4. Death Benefits Provident Fund Amount to Family (or to Nominee) Pension to Family (or to Parent / Nominee) Capital Return of Pension Insurance (EDLI) amount to Family (or to Nominee) No amount is taken from Member for this facility. Employer contributes for this. Nominee is basically determined as per the information submitted by the member at this office through FORM-2

Disadvantages
There are practically no disadvantages to the Employee Provident Fund. The rate of return is not as high as what you would get from high-risk investments such as shares and mutual funds. These investments may give you big money but the returns are not

Provident Fund in HCL

Provident Fund is the fund which is composed of the contributions made by the employee during the time he has worked along with an equal contribution made by his/her employers. Employer contributes 12% out of which 8.33% goes to Pension fund & 3.67% to PF fund, subject to maximum of Rs.541/-. Employee can contribute a minimum of 12% & maximum rate of 20% of the basic wages, dearness allowance and the retaining allowance. This amount can be withdrawn by the employee at the time of retirement, in case of termination of services Once the employee becomes a part of HCL BPO he/she can avail the benefit of PF & for Pension the employee need to have tenure of minimum 6 months with the company. PF can be of 3 types: Withdrawal Transfer In Transfer Out

PROVIDENT FUND AND PENSION

PF Process in HCL
In HCL, for the employee to begin his PF process he must go through all his exiting formalities and complete his full and final formalities. Once the employee is separated from the company he can begin his PF process. After an employee leaves the organization he can either choose to withdraw his PF amount or transfer it to his new companys PF account. Firstly, based on whether the employee wants to withdraw or transfer his PF amount he fills up the respective forms. (Form 19 or Form 13) Form 10C is for withdrawing his pension amount. Form details are filled by the employee who then hands it over to the EHS SPOCs. They are Special Points of Contact through which the employees can interact with the EHS team. As the forms are received by the SPOCs, they are checked for discrepancies after which they are put for processing. The necessary details in the form are matched with the SAP server that is a common intranet server between the HIL Trust and HCL.

In case of,
Withdrawal of PF Form 19 & Form 10Cneed to be filled by employee for withdrawal of PF & Pension. An employee can withdraw the PF amount after 60 days from resignation. The employee has to fill up form 10C along with form 19 in case of withdrawal to withdraw the entire amount. To withdraw the same a cancelled cheque & copy of the same with 2 revenue stamps, relieving letter & pan card (photocopy) should be submitted to Corp EHS team. The EHS team processes form 19 on the following parameters: 1. Name 2. Fathers Name 3. PF account number 4. PAN card number 5. Date of leaving 6. Reason of leaving* 7. Bank Details 8. Date of join and 9. Date of birth * Reason for leaving is very important component if reasons other than personal, family, education etc. are given like job change, better opportunity etc. or any other professional reason than the forms will not be accepted. And the pension form (10C) on the following parameters: 1. Name 2. Fathers Name 3. Date of Birth 4. Pension account number 5. Date of leaving and joining 6. Reason of leaving 7. Bank Details 5 signatures of the employee are required, 3 on the withdrawal form and 2 on the pension form.

Steps for processing withdrawal of PF 1. The executive logs on to the SAP PF server. Not all employees of HCL have access to this server, based on the designation and nature of work the employee is given access to the SAP server i.e. an executive looking after F&F procedures will not have access to the PF server in SAP database, also finance department will have its own data and access in the SAP server which cannot be seen or modified by the HR department. 2. Since all HCL employee are provided with an employee code that is unique to all employees. Hence, this makes identification and access of employee data easy. The executive enters his code on the server which allows him access to the employees details. The executive matches the details on the form with those on the SAP server like HR full & final details PF & Pension a/c no & fathers name from personal details. 3. He/she then updates the bank details like a/c number, bank name, bank address in the PF SAP server from the cancelled cheque provided by the employee, also the reason for leaving should be the same mentioned in the form before the details are saved on the SAP server. Note: Reason for leaving should not be better prospect. 4. Once the details are saved, a checklist is attached on top of the form, and company stamps are put on the designated spaces on the form, the form is sent to the concerned manager for final signatures.

5. The entries are made into a tracker and the forms are then couriered to the PF trust office. Final processing of the forms is then done by the trust and in case of withdrawal the PF amount is transferred to the employees bank account in 1-2 months. Form 10C is sent to the government pension trust for processing. Also, in case of withdrawal there is a 33% tax cut if his PF amount unless the employee is withdrawing after 5 years. The Pension amount takes 3-6 months to be processed and transferred as it is a government trust and not run by the company.

6. The entries are made into a tracker and the forms are then couriered to the PF trust office. Final processing of the forms is then done by the trust and in case of withdrawal the PF amount is transferred to the employees bank account in 1-2 months. Form 10C is sent to the government pension trust for processing. Also, in case of withdrawal there is a 33% tax cut if his PF amount unless the employee is withdrawing after 5 years. The Pension amount takes 3-6 months to be processed and transferred as it is a government trust and not run by the company

Transfer Out When an employee moves out of the company and joins elsewhere his company requests HCL to start his PF process by filling form 13 with the employers stamp and request letter. The PF process for transfer can be made at anytime after the employee is separated from the company. The EHS processes form 13 on the following parameters: 1. Name 2. Fathers Name 3. PF account number of previous & present employer 4. Pension account number of previous & present employer 5. Name of previous employer 6. Date of leaving 7. Date of joining present employer 8. Address of previous employer 9. Address of present employer Any discrepancies in these details; the form gets rejected immediately.

Steps for processing Transfer out of PF 1. Again, just like in the previous case the executive logs on to the SAP PF server with his unique username and password. He/She again verifies the details of the employee like his HR F&F, PF and a/c no. & fathers name from personal details Pension

2. He/She then updates the Name of the new employer, Name of the new trust of RPFC & Reason for Leaving before saving it. 3. Once the details are saved, a checklist is attached on top of the form, and company stamps are put on the designated spaces on the form, the form is sent to the concerned manager for final signatures. 4. The entries are made into a tracker and the forms are then couriered to the PF trust office. Forms 13 and 19 are processed by the companys PF trust. For PF, once, the form is accepted by the trust it takes 1-2 months for the amount to be transferred, as this is HCLs own

Transfer In

Transfer In is when an employee joins HCL from another company and wants to transfer his PF amount from the previous employer to HCLs. In that case, HCL requests the previous company to transfer the amount to HCLs own trust by sending the form 13 filled by the employee along with company stamp and letter Steps for processing Transfer in of PF 1. The steps are almost similar except in this case the employee has joined the organization hence his transfer amount needs to be transferred to the company PF trust from his previous PF trust 2. After the executive has logged on to the SAP PF server he uses the employees code to see the details of the employee. 3. In these details he updates the employees previous employment details. 4. After the data is updated, Fathers name, DOJ, PF a/c numbers etc. are checked and the data is saved in SAP. 5. The entries are made into a tracker and the forms are then couriered to the PF trust office The executive looks for discrepancies in the same parameters given above for form 13 before processing the forms.

Reject Forms After, the employee submits his PF form; the EHS team screens the form for discrepancies. If any of these necessary details mentioned in the previous parameters are incorrect, missing, overwritten without signatures, dont match with the SAP server or if the necessary verification documents are missing then the form is rejected. When discrepancies are found in the form it gets rejected here itself and is not sent to the trust but there are cases where the forms despite the clearance from the EHS team, gets rejected by the trust. In that case, all rejected forms are sent back to the centre, where the PF executive then informs the candidates about the status and reasons.
Database of the rejected forms are maintained by the PF department and they are couriered to the employee or destroyed and the employee is asked to initiate the process again.

PF Loan
During the tenure of the employee with the organization he cannot withdraw his PF amount. As we saw earlier, the concept of PF is to saving for the employees for social security purposes with equal contribution of the employer and employee. However, in certain cases and after a certain eligibility criteria the company allows the employee to take a loan from his PF a/c.

Condition for PF LOAN

Annexure to Loan Request

Purpose of Loan

Eligibility Criteria

Eligibility-Amount

Documents Required
1) A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumbrances and the same is under the title of the member or the spouse 2) copy of the title deed of seller. 3) copy of agreement to sell. 4) Copy of title deed in the name of member to be submitted with in six months from date of loan availed. 1)A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumbrances and the same is under the title of the member or the spouse. 2) Copy of the title deed in the name of member or member and spouse 3) An estimate from contractor 1) A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumbrances and the same is under the title of the member or the spouse 2) copy of the title deed of seller. 3) copy of agreement to sell. 4) Copy of title deed in the name of member to be submitted with in six months from date of loan availed.

HR-Remarks

For purchase of site for construction of house

5 Years of membership of the Fund (Minimum balance in members a/c should be Rs. 1000/-) * The purchase should be in favour of member or member & spouse

24 months wages (Basic & DA) OR 90% of ( Members own share of contribution + Companys share of contribution with interest thereon )

5 Years of membership of the Fund For construction of house (Minimum balance in members a/c should be Rs. 1000/-) * The purchase should be in favour of member or member & spouse

36 months wages (Basic+DA) OR 90% OF ( Members own share of contribution + Companys share of contribution with interest thereon)

5 Year of membership of the Fund For purchase of a dwelling flat (Minimum balance in members a/c should be Rs. 1000/-) * The purchase should be in favour of member or member & spouse

36 months wages (Basic+DA) OR l Members own share of contribution + Companys share of contribution with interest thereon

For additions, alterations or improvements to the dwelling house

5 years from the date of completion of dwelling house *The property should in the name of member or member

12 months basic or members own share of contribution with interest thereon.

Copy of title deed and estimate from the contractor

and spouse Advance from the fund for repayment of housing loan 10 years membership of the fund & member should have taken loan from Govt. Body / Financial Institutions as specified under PF Rules 36 month wages (Basic + DA) OR Members own share of contribution + Companys share of Contribution with interest thereon 50% of members own share of contribution including interest

A certificate from the lending authority furnishing the details of loan and outstanding amount

Advance from the fund for Marriage of self/son/daughter/ sister/brother etc.

7 years membership of the fund & minimum balance in members account should be Rs. 1000/7 years membership of the fund & minimum balance in members account should be Rs. 1000/-

Declaration by the member which is attested by the employer along with copy of marriage invitation Declaration by the member which is attested by the employer and copy of the registration documents and fees paid

Advance from the fund for education of Son/Daughter

50% of members own share of contribution including interest

Note:

(1) For calculation/ computing the period of membership total service exclusive of periods of break under the same employer before the scheme is applied to him, as well as period of membership of the fund is always included. (2) In case the loan is availed for construction of house the cheque can be drawn in favor of Member. In case of purchase of land/ flat/ dwelling house from some individual the amount can be paid to Member but in case the land/flat/dwelling house is purchased or to be purchased other than individual then the payment has to be made to the vendor

Points to remember
Form 19 PF withdrawal Form 10C Pension withdrawal (Tenure need to be more than 6 months) Form 13 Transfer of PF to another trust PF loan form Marriage, reconstruction of house or reasons in word document need to be referred 5. Form 10 D& Form 20 Death case 6. Voluntary Provident fund form limit up to 20% only 7. Reason for leaving cannot be better prospect for withdrawal of PF form. It needs to be same as mentioned in the form. 8. Current PF contribution can be checked for employee not separated by PF server-> ZCST Current statement 9. For pension query office address: RPFC Gurgoan, Plot no 43, Sector 44. Employee tenure needs to be for more than 6 months for the same. 10. PF a/c need to be for more than 5 yrs in continuity (i.e. employee need to contribute for continuous 5 yrs for PF) other wise 33% of tax deduction will be there. 11. Verification form need to be sent to Chennai on everyday basis (if required) 12. In case PAN card & PF form signature of the employee do not match, inform HR manager & take suggestion. 13. Check the date of relieving letter & DOL mentioned by employee on form. Incase of mismatch dont send the form, correct the same. 14. Cancelled cheque need to be of employee & not of his family members 15. Status of PF amount need to be updated in tracker with help from PF trust via mail on regular basis. 16. If employee needs clarification of PF amount mail PFtrust@hcl.in & ask for Annexure K. Status of PF form updated in 1. 2. 3. 4.

ESI Act
The promulgation of Employees State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good medical care to workers and their immediate dependants. Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to administer the Schemes. The Schemes, thereafter was first implemented at Kanpur and Delhi on 24th February 1952. The Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmens Compensation Act 1923. The benefits provided to the employees under the Act are also in conformity with ILO conventions

The Act is applicable to the factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons. Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States . The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).

AREAS COVERED The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories

MEDICAL BENIFITS
Insured persons and their dependants are entitled to full medical care from day one of taking up employment in any factory or establishment covered under the ESI Act 1948. The comprehensive package includes primary medical care, specialists and diagnostic services, in-patient care with provision for all super specialist facilities. The scheme provides full range of medical care, namely Out-Patient services Diagnostic services Specialists services Hospital service through a network of ESI dispensaries & Panel clinics, diagnostic centers and ESI Hospitals.etc The package covers all aspects of health care from primary to super-specialist facilities as detailed below:Out patient treatment Domiciliary treatment Super-speciality treatment Specialist consultation and diagnostic facilities In-Patient treatment

CONTRIBUTION
Contribution is the amount payable to the Corporation by the principal employer in respect of an employee and comprises the amount payable by the employee and the employer. The scheme is primarily funded by contribution raised from insured employees and their employers in the implemented areas as a small but specified percentage of wages payable to such employees. The rates of contribution as of now are:Employees contribution-1.75 percent of the wages Employees contribution-1.75 percent of the wages Employers contribution-4.75 percent of the wages Total-6.50 percent of the wages It is obligatory on the part of the employer to calculate and remit ESI Contribution comprising of employers' share 4.75% plus employees' share of 1.75% which is payable on or before 21st of the following month, to the month to which the salary relates. If the employee is drawing upto Rs.70/- as daily average wage, he is exempt from the payment of his share of contribution. The employer is however to pay employer's share of 4.75% of the salary received/receivable by the employee.

The State Govt. bears one-eight share of expenditure on medical benefits with in the per capita ceiling of Rs.1200/- per I.P. family per annum.

ESI Scheme
With a view to provide better services ESIC has launched a project to provide IT enabled Services for Insured Persons and employers of Delhi and Haryana. viz. Online registration of employers under the ESI Act,1948 Online registration of insured Persons (IP) and employees at the ESI Branch Offices Online payment of ESI Contribution by the Employers through gateway of State Bank of India . Option of access to ESIC's website (www.esic.nic.in) in Hindi as well as in English Payment of Cash Benefits of all types Facilitation of Medical Care.

Conclusion and Recommendations

According to my observation at HCL BPO, the exiting employees have cited all the previous reasons mentioned above. Therefore, as I was training under the PF I felt the need to address the issue of attrition. Some recommendations for addressing attrition in the organization are as follows:

1 .Receiving proper receiving should be given to the ex-employee while receiving the form and on daily bases the entry should be done in the daily tracker .

2. Proper Hiring There is need for a higher degree of due diligence at the hiring stage. At the hiring stage itself, Recruitment team needs to make the prospective employee aware of what the job exactly entails, what is the performance standards expected, the career path for the candidate, etc. Recruitment team needs to check the background and other factors particular to the candidate that might be a potential source of early exit. However, under the tight labor scenario and resource crunch, it is very difficult for companies to be very selective. One solution can be to look beyond the present workforce alternatives. Sections like housewives, students, physically-handicapped people and retired persons can be explored. In fact, Datamatics Technologies Limited (DTL) has already implemented a unique model wherein it employs part-time workers whom the company dubs 'knowledge associate'. These associates could be housewives, students or retired folk. By hiring parttime workers, the company is able to manage fluctuations in customer projects. 5. Clear Communication & Expectations Management A clear communication between the ex-employee and the department which can make the process fast 6. PF Statement Their should be a proper portal on Hcl site where ex-employee can easily find the pf status by entering their employee code . 7. Role of the Team Leader The quality of the team leader an employee receives is critical to employee retention. People leave managers and supervisors more often than they leave companies or jobs. Anything the team leader does to make an employee feel unvalued will contribute to turnover. Therefore, companies should look at ensuring proper competencies in their

Recommendations
Sighting all these problems I have come up with recommendation that I hope will be relevant in the improvement of the exiting process in HCL.

Absconding employees are one of the most prominent problems facing the exiting process according to me they not only cause problems to their respective process but also to line HR and corporate HR, I believe that HCL despite being an employee friendly should remain friendly towards only those who are loyal to the company. Absconding is seen as a cowardly act by the entire corporate world and like the other HCL too should have strict policy on absconding employees. One way is that rejoining bonus should not be given to absconding employee, in fact if they want to rejoin they should first settle their previous dues and recovery before being allowed to rejoin. Also, he should not be given any reimbursement or AL encashment. Another way is to retain documents of the new joining employees or by making new joinees sign bonds for a specific maturity period. This will not only hold the employee from absconding in the future but will also filter the new joinees as only those person would be willing to join who will be serious about making it in the company. We can also redesign salary structures; include a variable component, which can be retained by the company as and when the situation arises. Variable payouts could include bonus, to be considered only after completion of a specific period of service The company can also ask for a certain amount for security purposes at the time of joining which will be duly returned to him when he leaves the organization through formal channels

Improving coordination between Line HR and Corporate EHS is the key as there is high dependability and large volumes of processing required hence accuracy and timing becomes important. In my opinion a monthly meeting should be held by the Corporate EHS team with the Line HR SPOCs to discuss progress and problems with full disclosure and frankness. - Same should be done with the finance department as there is dependability between the departments they should be accountable for delays on their part which results in finger being pointed at the EHS department. The concept of harmony, not discord should be applied here

Future Prospects

The Company HCL BPO a division of HCL Technologies Limited, is a dominant player in the business process outsourcing (BPO) field with more than 11,400 professionals operating out of India, the United Kingdom and the United States, running 21 delivery centres. It offers 24x7x365 multichannel, multilingual support to international customers. As a leading provider of BPO solutions, HCL needed to distinguish its services from other players in the market and was looking at deploying a unified multimedia solution which could cater to its multi-location operations. They were looking for a solution that is robust, scalable and redundant and can comply with government-mandated industry regulations. Moreover the solution should be able to address the domestic and International market requirement according to Department

This project was my best effort to give back something to the company that has given me such a learning experience in the last few weeks. I hope this project will be of purpose to the company in the future and my insight. This project highlights the problems facing the exiting process and my suggestions to cope with those problems as well. I believe this document can be used as a reference at a future time for other training and learning purposes by other people. I believe my recommendations can be discussed further at the policy making level where my observations can provide insight to the decision ma

Appendices
FORM 19&10-C EMPLOYEES PROVIDENT FUNDS SCHEME, 1952 FORM 19 FORM TO BE USED BY A MAJOR MEMBER OF THE EMPLOYEESPROVIDENT FUNDS SCHEME, 1952 FOR CLAIMING THE EMPLOYEESPROVIDENT FUND DUES (PARA 72(5)) 1 2 3. Name of the Member (in block letters) : Fathers Name (or Husbands Name in the case of married woman) Name and address of the Factory/ : establishment in which the member was last employed Account No. : PAN (permanent account number) : Date of leaving service : Reasons for leaving service :

4 5. 6. 7

(Refer to annexure to the form attached herewith) 8 Full Postal address (in Block letters) : Shri/Smt/Kumari _______________________ S/o d/o w/o ___________________________________________________________ ___________________________________________________Pin______________ _ 9 MODE OF REMITTANCE: Put a tick in the box against the one opted: [ (a) by postal money order at my cost To the address given against item No. 7 (payable upto Rs. 2,000/- only) [ ] (b) By account payee cheque sent [ ] S.B. Account No. _______________________ for credit to my account in the Name of the Bank ______________________ Scheduled Bank/or any post office Branch: ______________________________ or any Co-operative Branch: Bank _______________________________________ including Urban Co-operative Bank. Full address of the Branch: _______________ _______________________________________ _______________________________________

Contribution for the current financial year (To be filled in by the Company) Month Contribution Period Of Break EE Total Mont Wage Employ h s er EP EP PS EP P F F F S

Month Period of Break Mont Wage h s

Contribution

E E

Employe rs

Total

EP EP PS F F

EP P F S

(All the above fields from serial no. 1 to 9 are mandatory) (Advance Stamped Receipt furnished below) CERTIFIED THAT THE PARTICULARS ARE TRUE TO THE BEST OF MY KNOWLEDGE

Date of joining the Establishment: ___________________________________

Date of Birth

___________________________________

Information to be furnished by the Employer if the Claim Form is attested by the Employer. Certified that the above contributions have been included in the regular monthly remittances. The applicant has signed/thumb impressed before me. X Signature of Left hand thumb impression of the member Signature of the employer or authorized official Date ________________________ Designation & Seal ___________ In case, however, the members are physically handicapped and cannot affix left thumb impression, the thumb and finger impression of the right hand failing which toe impression may be obtained.

Declaration of Non-employment I declare that I have not been employed in any factory/establishment to which the Act applies for continuous period of not less than 2 months immediately preceding the date of my application for final withdrawal of may provident fund money. X Date: impression of the member Signature or left/right thumb

ADVANCE STAMPED RECEIPT (To be furnished only in case of 8(b), (c) & (d) above) Received a sum of *Rs ______________________________ Rupees _____________________________________ only) from Regional Provident Fund Commissioner/ Officer-in-charge of Sub-Regional Office/Sub-Accounts Office __________________________________________ . By deposit in my saving Bank account towards the settlement of my Provident Fund Account. The space should be left blank which shall be filled in by Regional Provident Fund Commissioner/Officer in-charge of S.R.O./S.A.O. Signature of Left hand thumb impression of the member For the use of Commissioners Office A/c. Settled in Part/Full Entered in F.21-A/24/2/9 (Revised) & Withdrawal register Clerk S.S.
Affix 1/- Rupee Revenue Stamp

(Under Rupees________________________) Account No.__________ P.I.No._______________________________ Nature of benefit______ Section___________ MO/Cheque________________ Passed for Payment for Rs.______ (in words) (Rupees___________________________)

Money order Commissioner (if any) A.A.O./A.P.F.C. Net Amount to be paid by MO Rs.

Date

[For use in Cash Section] Paid by inclusion in Cheque No. __________________________________ dated _____________ Vide Cash Book (Bank) Account No. 3 Debit Item No. __________________________________ S.S. AAO/APFC RPFC

Remarks:: Acknowledgement received on _______________________ Verified on __________________________________ Annexure to Form -19 To: PFHelpDesk Unit____________________ From: HR

Check list for PF withdrawal form (to be completed by concern HR Department) The member has opted to withdraw his PF accumulation in the following circumstances and accordingly required document/s and information is/are attached herewith: Circumstances Document Attached (pl. tick) a) Member is retiring from service after attaining the age of 55years : b) Member is retiring on account of permanent and (no document) Documents Required

A certificate is required by a

total incapacity for work in Industry due to bodily or Registered Medical practitioner mental infirmity: or the Medical Officer, should be enclosed. c) Member is migrating from India for permanent certificate settlement abroad: d) Is going abroad for some employment: passport e) has not been employed in any factory to which employment the scheme applies for a continuous period of two months immediately preceding the dt.of application: PAN (Copy of PAN Card) True copy of Migration

True Copy of Visa &

A declaration of non-

(Signature of HR Official) FORM 10-C (EPS)

EMPLOYEES PENSION SCHEME, 1995 FORM TO BE USED BY A MEMBER OF THE EMPLOYEES PENSION SCHEME, 1995 FOR CLAIMING WITHDRAWAL BENEFIT/ SCHEME CERTIFICATE 1. a) b) 2. 3. a) b) Name of the member (In block letters) Name of the claimant(s) Date of Birth Fathers Name Husbands Name (if applicable) : : :D D : : : M M Y Y Y Y

4.

Name & Address of the Establishment in which, the member was last employed

5.

Code No. & Account No.Region / SRO Code/ Estt. Code /A/c No. HR

6.

a) Reason for leaving service b) Date of leaving service a) Date of joining service Full Postal Address (in Block letters)

:______________________ : _______________________ :________________________ :________________________ _________________________ _________________________ _________________________ Pin: ___________________ (a) Yes No Name of the Guardian for minor (b)

7.

8. 9.

Are you willing to accept Scheme Certificate in lieu of withdrawal benefits Particulars of Family (Spouse & Children & Nominee) Name Date of Relationship Birth with member Family members

a)

b) Nominee _____________________________________________________________________________ 10. In case of death of member after attaining the age of 58 years without filing the claim a) b) Date of death of the member Name of claimant (s)/ and relation:

: :

ship with the member

11.

MODE OF REMITTANCE [PUT A TICK IN THE BOX AGAINST THE ONE OPTED] a) b) By postal money order at my cost to the address given against item No. 7 Account payee cheque sent direct for credit to my SB A/c (Scheduled Bank) under intimation to me) S.B. Account No.: _____________________________________ Name of the Bank (In Capital letters): _____________________________________ Branch (In Block letters): ______________________________________ Full address of the Branch (In capital letters) _____________________________________ _____________________________________ _____________________________________

12.

Are you availing Pension under EPS, 1995 ? if so, Indicate PPO No. __________________ By whom issued ? _______________________

CERTIFIED THAT THE PARTICULARS ARE TRUE TO THE BEST OF MY KNOWLEDGE

Dated . Signature or left Hand Thumb impression of the member/Claimant(s)

13. ADVANCE STAMPED RECEIPT (To be furnished only in case of 11 (b) above) Received a sum of Rs.* ____________________ (Rupees ______________________________ _____________________ only) from Regional Provident Fund Commissioner/Officer-in-charge of Sub-Regional Office, _________________________ by deposit in my Savings Bank A/c towards

the settlement of my Pension Fund Account. *(The space should be left blank which shall be filled by Regional Provident Fund Commissioner / Officer-in-charge) Signature or left hand thumb impression of the member on the stamp Re. 1 Revenue Stamp

14. ATTESTATION OF EMPLOYER Certified that the particulars of the member Shri/Smt./Kum. ___________________________ A/c No. ________________________ are correct and the member has signed/thumb impressed before me The details of wages and period of non-contributory service of the member are as under:( Form 3-A/7 (EPS) enclosed for the period for which it was not sent to Employees Provident Fund Office.) Wages (Basic + D.A.) as on 15.11.95 ( if applicable) Wages as on the date of exit : :

Period of non-contributory service Year/Month No. of days Signature of Employer/ Aut horised Offical with seal Date:

(FOR THE USE OF COMMISSIONERS OFFICE) (Under Rs. ___________________________________________________________________ P.I. No. _____________________________________________________ M.O. / Cheque

Passed for payment for Rs. ________________________________________________ M.O. Commission ( if any ) __________________________ net amount to be paid by M.O. ____ __________________________ towards withdrawal benefit.

D.H.

S.S. (FOR USE IN CASH SECTION)

A.A.O

Paid by inclusion in cheque No. ________________________________ Date ___________ vide cash Book (Bank) Account No. 10 Debit item No. ____________________________

S.S. For issue of S.C.; IDS is enclosed with Form 2 (Revised).

AC(CASH)

D.H.

S.S.

A.A.O. ( FOR USE IN PENSION SECTION )

APFC(A/cs)

Scheme Certificate bearing the Control No. _______________________ issued on ____ _________________________ and entered in the Scheme Certificate Control Register:

D.A.

S.S.

A.A.O.

APFC(PENSION)

FORM 13

FORM 13 (Revised)
THE EMPLOYEES' PROVIDENT FUNDS SCHEME, 1952
(Para-57)

Application For Transfer of EPF Account

NOTE: (i)
(ii) To be submitted by the member of the present employer for onward transmission to the Commissioner, EPF by whom the transfer is to be effected.
In case the P.F. transfer is due from the P.F. Trust of an exempted establishment, the application should be sent direct by the employer to the P.F. Trust of the exempted establishment, with a copy to the RPFC concerned for details of the Pension membership.

To The Commissioner, Employees' Provident Fund, .. ..

(To be filled in, If Note (ii) above is applicable)

To M/s .

Sir/Madam, I request that my Provident Fund balance along with the membership details in Pension Funds may please be transferred to my present account under intimation to me. Necessary particulars are furnished below: 1. 2. Name: Father's/Husband's Name in case of married woman: Name & Address of Previous employer:

3.

4. 5.

EPF account Number with the previous employer: By whom the PF account of the previous estt. Regional PF Commissioner / at Name of the PF Trust is kept:

6.

Pension Fund Account Number with the previous employer (if allotted a separate one): Date of leaving service with previous employer: Date of joining the present employer: Signature/Left Hand Thumb Impression of the Member

7. 8.

Date.

TO BE FILLED IN BY THE PRESENT EMPLOYER

9. Name & Address of establishment:

10. EPF Code & Account No. allotted to the member

11. Pension Fund Account No. allotted to the member separately, if any:

12. By whom the EPF account of the member in the present establishment is kept:

a) Being an unexempted establishment

(i) By Regional office at station (ii) Sub-Regional office at

b) Being an exempted establishment

(i) By exempted PF Trust VIZ (ii) By private PF-Not covered under the Act viz.

13. By whom the Pension Fund Account of the member in the present establishment is kept.

(I) By Regional Office at (ii) Sub-Regional office at

14. In whose favour cheque has to be drawn? Payees details

Date..

Signature of Official With Office Seal

Employer/Authorised (FOR THE USE OF P.F. OFFICE ONLY)

A sum of Rs.(Rupees..) is authorised for transfer vide Annexure 'K' (Revised). Transfer proceeds to be sent alongwith Annexure 'K' (Revised). By Cheque to the Regional PF Commissioner/Officer in charge of Sub-Regional Office. By Cheque to the PF Trust of the establishment with reference to details in Serial No 14 above. Membership details under Pension Fund forwarded to PF Regional Office/ Sub-Regional Office at______________________________________. By transfer through Annexure K ( Revised) sent through EDP for intra office transfer. Transfer intimation copy of Annexure-K ( Revised) to the member placed below.

P.I. No. Scroll NO.

CLERK

S.S.

A.A.O./APFC

Paid by Cheque No.______________________dated: Cashier/Clerk Section Supervisor A.P.F.C.

FORM 10-D

APPLICATION FOR MONTHLY PENSION FORM 10 D ( EPS)

EMPLOYEES PENSION SCHEME, 1995

( Read INSTRUCTIONS before filling in this Form ) 1. By whom the Pension is Claimed ? 2. Type of Pension Claimed.

3. a)

Members name ( In BLOCK LETTERS ) Sex Marital Status Date of Birth/Age Fathers/Husbands Name

b) c) d) e) 4.

: : : : RO SRO Establishment code No. :

E.P.F. Account Number

Members Account No.

5. Name & Address of the Establishment In which the member was last employed 6. Date of leaving service 7. 8. Reason for leaving service Address for communication : : :

8a

In case of reduced pension : ( early pension) date of option for commencement of pension

_______ Date

__________ Month

__________ Year

9.

Option for commutation of 1/3 of Quantum YES ( Pension (If option is for lesser ) commutation indicate

NO

the quantum )

10. Option for Return of Capital ( Please refer serial Number 10 of INSTRUCTIONS ) [ Put a tick ( ) ] if yes , indicate your choice of alternative

______ YES 1 2

______ NO 3

11

Mention your Nominee for Return of Capital Name Relation Date of Birth Address Particulars of Family Name : : : : : Date of Birth/Age Relationship with Member Indicate against Minor

12.

Sl No.

Guardian Name (1) 1 2 (2) (3) (4) (5)

Relationship with Member (6)

Note : If any child is physically handicapped, please indicate DISABLED below the name. 13. Date of death of Member ( if applicable) 14. Details of Saving Bank Account opened. (1) Name of the Bank (2) Name of the Branch 15. Full Postal Address Pin code Name of the Claimant (s) : : : : : : Saving Bank Account No.

SL. No.

14 (a) If the Claim is preferred by nominee, indicate his/her (1) Name : (2) Relationship with the deceased Member : 15. Details of Scheme Certificate. Already in possession of the Member, if any

: Scheme Certificate received & enclosed

Please note his previous membership details:

If Received, indicate SL.No. Scheme Certificate Control No.

Authority who issued the Scheme Certificate

16. If pension is being drawn under E.P.S., 1995

PPO No.

Issued by RO/SRO

17. Documents enclosed ( indicate as per the instructions) 1. 2. 3. 4.

To be submitted in duplicate in respect of each person eligible for pension

Descriptive roll of Pensioner and his/her Specimen Signature / Thumb impression 1. 2. 3. 4. 5. 6. Name of the member E.P.F. Account Number Name of the Pensioner Father/Husband name Sex Nationality :___________________________________ :___________________________________ :___________________________________ :___________________________________ :___________________________________ :___________________________________

7. 8.

Religion Height

:___________________________________ :___________________________________

9. Personal Mark of Identification

: (1) _______________________________ (2)_______________________________

10. Specimen Signature of Pensioner

: (1)________________________________ (2) ________________________________ (3) ________________________________

11. [ Only in the case of illiterate Claimant ( Pensioner) Left Hand Finger Impression]

THUMB

INDEX

MIDDLE

RING

SMALL

Place :
Dated : Signature Name of the Attesting Authority Official Seal

Certified that : (i) I am not drawing Pension under Employees Pension Scheme, 1995. (ii) The particulars given in this application are true and correct.

Signature of the applicant/ Left Hand Thumb Impression

( TO BE FILLED IN BY THE EMPLOYER/ AUTHORISED OFFICER OF THE ESTABLISHMENT ) Certified that : 1. The particulars of the member are correct. 2. The particulars of wages and Pension contribution for the period of 12 months preceding the date of leaving service are as under : ( In case, the wages is not earned for all 12 months, the block of 12 months will commence backwards from the last pay drawn) Year Month Wages Pension Contribution due Details of period of non contributory service. If there is no such period indicate

NIL
No. of days Amount Year No. of days for which no wages were earned.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Encls : 1. Documents as given in the instructions. 2. Form of descriptive roll and specimen signature.
Signature of Employer / Authorized Official Of the Establishment with Seal & Date

( FOR OFFICE USE ONLY )

( PENSION SECTION/ACCOUNTS SECTION )

Certified that the particulars in the application have been verified with the relevant concerned documents the claimant is eligible for Pension. The input data sheet is placed below for approval. Entered in Form 9/Form 3(PS), Master Ledger Card/ Claim inward Register. Form 2(R) enclosed alongwith the documents furnished by the claimant.

Clerk Date

S.S. Date

A.A.O. Date

A.P.F.C. ( Pension ) Date

( FOR USE IN PENSION PRE-AUDIT CELL )

The input date sheet verified with reference to the application and the documents enclosed and found correct P.P.O. may be generated through computer.

Clerk

S.S.

A.A.O.

A.P.F.C.( Pension)

Date

Date

Date

Date

(FOR USE IN PENSION DISBURSEMENT SECTION)

P.P.O. No Date of issue to the Bank Intimation sent to the claimant and also to Accounts Branch on : (Date) Bank:

Clerk Date FORM 2

S. S. Date

A.A.O. ( Pension ) Date

A. P.F.C. Date

FORM 20

EMPLOYEES PROVIDENT FUNDS SCHEME 1952

Employee ID HR Centre FORM - 20 Form to be used for claiming the Provident Fund accumulation of minor/lunatic/deceased member (1) By the guardian of minor/lunatic member (2) By a nominee or legal heir of the deceased member. (3) By the guardian of the minor/lunatic nominee or heir for claiming the provident fund accumulation of the minor deceased member Note : Read the Instruction Carefully before completing this form.
PARTICULARS OF THE MEMBER

a) b) c)

Name of the member ( in block letters) Fathers / Husbands name Name & Address of the Factory / Establishment in which the member was last employed Account No. Date of leaving service Reasons for leaving service IN CASE OF DECEASED MEMBER Date of Death Marital status of the member on the day of death

d) e) f) g)

h)

PARTICULARS OF THE CLAIMANT To be filled in by a Major Nominee/ Legal Heir/Member of the Family of the Deceased Member a) b) c) d) e) f) Name of the claimant ( in block letters) Fathers / Husbands name Sex Age( as on the date of death of the member ) Marital status ( as on the date of death of the member whether unmarried, widow/widower) Relationship with the deceased member

To be filled in by the Guardian of Minor member/ Manager of Minor/Lunatic member or Lunatic/Minor Nominee (s), Legal Heir(s) Family member(s) of the deceased member (a) Name of the claimant ( i.e. Guardian ) (b) Fathers / Husbands name (c) Relationship with the member /deceased member

Particulars of the Minor/Lunatic ( Nominee(s)/Legal Heir(s)/ Family Member(s) on whose behalf the Provident Fund Account amount is claimed

S.NO.

NAME

SEX

AGE

RELIGION

RELATIONSHIP
WITH DECEASED MEMBER WITH GUARDIAN

1 2 3 4 * Delete if not applicable 4. Claimants Full Postal address ( in block letters

Shri/Smt./Kumari _________________________ S/o,W/o, H/o, D/o_________________________ _______________________________________ Pin_____________________________________

5. Mode of Remittance

Put a tick in the box against the one opted

(a) By Postal Money order at my cost ( payable upto Rs. 2,000/-only) (b) By account payee cheque sent direct for credit to my account in the Scheduled Bank/or any post office or any co-operative Branch: Bank including Urban Co-operative Bank. or any post office under intimation to me) Advance Stamped receipt furnished below [ ] (c) by deposit in the payees name ( the whole or part of the amount ) in the form of annuity term deposits scheme in any Nationalised Bank [ ]

To the address given against item No. 4

OR
S. B. Account No._________________________ Name of the Bank_________________________ Branch :_________________________________ Full address of the Branch__________________

________________________________________

CERTIFICATE To the best of my knowledge no posthomous child will be born to the deceased member

I certify that the particulars given above are true to the best of my knoweldge. I certified that the minor(s) lunatic Sh. / Smt. / Kumari_______________________________is living with me and is being supported and looked after by myself and the Provident Fund money claimed on behalf of minor/lunatic will be spent in his /her best interest and benefits. I certify that the minor member has not been employed in any Factory/Establishment to which the Act applies for a continuous period of not less than 2 months immediately preceding the date of this application.

Signature of Left hand thumb impression of the claimant Enclosures : Date Delete, if not applicable

Advanced Stamped Receipts [ To be furnished only in case of 5(b) above ] Received a sum of ( Rs.*______________________(*Rupees________________________________ Only) from Regional Provident Fund commissioner/Officer in charge of Sub Regional office/Sub Accounts Office __________________________________________. By deposit in my Saving Bank Account towards the settlement of my Provident Fund accounts of Shri / Smt. ______________ _______________________________________________ * The space should be left blank which shall be filled in by Regional Provident Fund Commissioner/ Officer In charge of S.R.O./S.A.O.

Affix 1 rupee Revenue stamp

Signature or Left hand thumb impression of the claimant

Certificate by the attesting authority CONTRIBUTION FOR THE CCURRENT PERIOD

Contribution
Month Employee Employer Total

Contribution EPS
Period of Break if any Month Employee Employer Total

EPF

EPF

EPS

EPF

EPF

EPF

EPS

EPF

EPS

Period of Break if any

Certified that the above contribution have been included in the regular monthly remittances. Certificate by the attesting authority Certified that the facts stated above are correct. Certified that the claimant Shri/Smt. Kumari______________________________________ is known to me and the signed/thumb impressed before me. Date Signature of the employer or any authorised Official Designation & Seal ( FOR THE USE IN PROVVIDENT FUND COMMISSIONERS OFFICE ) A/c Settled in Part/Full entered in form 21-A/24/2/9 ( Revised) & withdrawal Register

Clerk P.I. No.________________________ M/O/ Cheque

S.S. Account No. ___________

Section __________________________ Under Rs. _________________________________________________________________________ Passed for payment for Rs. _________________( Rupees in words____________________only) M.O. Commission ( if any)________________ Net amount to be paid by M.O.____________ A.A.O./ A.P.F.C. Date

FOR USE IN CASH SECTION

Paid by inclusion in cheque No.__________________dated___________the_________vide Cash Book Account No. 3 debit item No.____________________________________________________
S.S. REMARKS Assistant Commissioner

References
1. Form 13,19 & 10C 2. Employees Provident Fund Scheme, 1952 3. Employees Provident Fund Act, 1952 4. www.citehr.com 5. www.scribd.com 6. www.epfindia.com 7. www.chrmglobal.com 8. Standard Operating Procedure PF HCL 9. http://www.bpoindia.org/research/bpo-in-india.shtml 10. www.chillibreeze.com/articles/top-BPO-companies 11. www.articlesbase.com Business Outsourcing 12. wordnet.princeton.edu/Perl/webwn 13. en.wiktionary.org/wiki/Employees 14. aspa.org/resources/res_news_glossary.htm 15. http://www.bpoindia.org/research/attrition-rate-big-challenge.shtml