Chapter-10 Provisions Relating to Provident Fund, Gratuity and Insurance

52. Contribution for provident fund:
(1) The employer shall deduct ten percent of the basic remuneration of each labour, add cent percent to that amount and deposit the total amount for the purpose of provident fund.
(2) The employer shall deposit the amount referred to in sub-section (1) in the Social Security Fund in the name of the concerned labour, with effect from the date on which he or she started to work.
(3) Notwithstanding anything contained in the sub-section (2), the employer shall, in the following circumstance, deposit such provident fund amount as prescribed:
(a) Until the Social Security Fund is established and comes into operation, or
(b) Until the law relating to the Social Security Fund becomes applicable to the concerned employer.
(4) In the case of a labour for whom the amount for provident fund was not contributed before the commencement of this Act, the employer shall contribute the amount for provident fund from the date of the commencement of this Act.
(5) The amount for the provident fund deposited in the retirement fund or any other similar fund established under the laws in force at the time of the commencement of this Act or held in the custody of the employer shall be transferred to the Social Security Fund as prescribed after the commencement of this Act.
(6) Notwithstanding anything contained elsewhere in this Section, the employer shall make payment of an additional amount equivalent to ten percent of the basic remuneration of such a labour if the amount for the provident fund cannot be deposited pursuant to Section (2) or (3) for any reason.

53. To receive gratuity:
(1) The employer shall deduct an amount equivalent to eight point three and three (8.33) percent of the basic remuneration of each labour each month and deposit it for the purpose of gratuity.
(2) The amount referred to in sub-section (1) shall be deposited in the Social Security Fund in the name of the concerned labour with effect from the date on which such a labour begins to work.
(3) Notwithstanding anything contained in sub-section (2), the employer shall, in the following circumstance, deposit such amount of gratuity as prescribed:
(a) Until the Social Security Fund is established and comes into operation, or
(b) Until the law relating to the Social Security Fund is applicable to the concerned employer.
(4) The employer shall provide the gratuity referred to in sub-section (1) from the date of the commencement of this Act in the case of a labour whom the gratuity is not required to be paid to before the commencement of this Act.
(5) The amount for gratuity deposited in the retirement fund or any other similar fund established under the laws in force at the time of the commencement of this Act or held in the custody of the employer shall be transferred to the Social Security Fund as prescribed after the commencement of this Act.
(6) Notwithstanding anything contained elsewhere in this Section, the employer shall pay to a labour an additional amount equivalent to eight point three and three (8.33) percent of the basic remuneration of such a labour if the amount for gratuity cannot be deposited for any reason pursuant to sub-section (2) or (3).
(7) Any labour who is entitled to pension shall not get the gratuity referred to in this Act.

54. Medical insurance to be made:
(1) The employer shall procure make an annual medical insurance of at least one hundred thousand rupees for each labour.
(2) The premium required for the medical insurance referred to in sub-section (1) shall be borne by both the employer and the labour on a pro rata basis.

55. Accidental insurance to be made:
(1) The employer shall procure accidental insurance of at least seven hundred thousand rupees covering all kinds of accidents for each labour.
(2) The whole premium required for the accidental insurance referred to in sub-section (1) shall be borne by the employer.
(3) If a labour dies or gets completely incapacitated mentally or physically as a result of an accident, such a labour or his or her legal heir under the prevailing law shall get for compensation the cent percent of the amount of insurance referred to in sub-section (1).
(4) If a labour gets injured or incapacitated in an accident, he or she shall get compensation on the basis of the percentage of incapacitation as prescribed.

56. Amount to be paid by the employer:
Where a labour or his or her dependent heir is not able to obtain the amount of insurance because of the failure of the employer to procure insurance referred to in this Chapter or any recklessness or error made in the making of insurance, the employer shall pay an amount equivalent to the insurance to such a labour or dependent heir.

57. Social security scheme to be applicable:
Any employer or labour who so makes a contribution in the social security scheme as to be entitled to the benefits including the provident fund, gratuity, and medical insurance pursuant to the law relating to the Social Security Fund shall not be required to make additional contributions or insurance under this Chapter, to the extent of such contribution.