The benefits provided to employees under the Employees Provident Fund (EPF), Employees Trust Fund (ETF), and the Payment of Gratuity Act are as follows:
- Employees Provident Fund (EPF):
- The EPF is a social security system established to provide financial security for employees of the private sector and corporations upon retirement or termination of employment.
- Contributions are made to the EPF by both the employer and the employee during the period of employment.
- Upon retirement or termination, employees are entitled to withdraw the accumulated funds, which include both the contributions made by the employee and the employer, as well as any interest accrued over time.
- Employees Trust Fund (ETF):
- The ETF is another form of social security benefit for employees, established under different legislation (Act No. 46 of 1980).
- It is a fund to which employers contribute a certain percentage of the salaries of their employees.
- The ETF serves as a supplementary benefit to the EPF, providing additional financial security to employees upon retirement or termination.
- Payment of Gratuity Act:
- Gratuity is a benefit paid to employees as a form of appreciation for their service when they leave employment after a certain period.
- The Payment of Gratuity Act, No. 12 of 1983, outlines the calculation of gratuity and the conditions under which it is payable.
- Gratuity can be forfeited under certain conditions, such as termination of services for reasons of fraud, misappropriation of funds, willful damage to the property of the employer, or causing loss to the employer.
It is important to note that these benefits are subject to specific conditions and regulations as outlined in the respective Acts and amendments. Employees should refer to the latest legal texts or consult with a licensed attorney for the most accurate and personalized information regarding their entitlements under these funds and acts.