Section 10 of EPFMA : Section 10: Protection Against Attachment

Explanation using Example

Imagine John, an employee, has accumulated a significant amount of money in his Employees Provident Fund (EPF) account. Unfortunately, John incurs a large amount of debt and his creditors sue him. They obtain a court order to attach his assets to recover the debt. However, according to Section 10(1) of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, the money in John's EPF account is protected. The court cannot attach his EPF savings to pay off the debt, nor can any insolvency official claim it.

In another scenario, if John were to pass away, the money in his EPF account would be payable to his nominee. Under Section 10(2), this amount would go directly to the nominee without being used to pay off any debts John may have had before his death. The nominee also cannot have this money attached by the court for their own debts.

Lastly, Section 10(3) extends these protections to any family pension, insurance amounts, or other payments that are similar to the EPF, ensuring that these funds are also secure from creditors and court attachments, both during the employee's lifetime and after their death.