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Rates of Provident Fund (PF) Administrative Charges reduced The Employees’ Provident Fund organization (EPFO) has reduced the PF administrative charges to 0.65% (earlier the rate was 0.85%). Furthermore, the Employees’ Deposit Linked Insurance (EDLI) administrative charges have been reduced to 0% (nil) (earlier the charges were 0.01%). These changes are implemented from 1st April 2017.   S.No Particulars Non Contributory (No Employee is being paid, but PF code is in use) Non Contributory (No Employee is being paid, but PF code is in use) Old Rate Up to 31st March 2017 Revised Rate from 1st April 2017 Old Rate Up to 31st March 2017 Revised Rate from 1st April 2017 1 PF Admin Charges( A/c No: 2) in payment challan Monthly Minimum rate of Rs. 75 Monthly Minimum rate of Rs. 75 Monthly Minimum rate of Rs. 500 (or) Monthly Minimum rate of Rs. 500/- (...

An Employees’ Enrollment Campaign has been launched by Employees’ Provident Fund Organisation during the period 01.01.2017 to 31.03.2017, in order to extend social security benefits to all the eligible workers in the country. During the Campaign, various financial incentives are being offered to establishments to enroll their workers.  Now the respective Campaign has been extended till 30th June 2017 where in all other Procedure of payment /Period etc. remains the same.

Introduction of Composite Claim Forms (Aadhar and Non-Aadhar) to replace existing Claim Forms No.1910C & 31 and Forms No.19(UAN), 10C(UAN) & 31(UAN)

EPFO the administrative charges payable by the employer for the purposes of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme with effect from  1st April, 2017  at 0.65 per cent  (zero point six five per cent.) of the pay as referred to in the said paragraphs  subject to a minimum sum of seventy-five rupees  per month for every non-functional establishment having no contributory member  and five hundred rupees per month per establishment for other  establishments. Further the Central Government hereby determines  that no sum shall be payable for the time being by the employer  in relation to his employees as the further sum payable by the employer every month to the Deposit-Linked Insurance Fund for the meeting the expenses in connection with the administration of the  Employees Deposit-Linked  Insurance Scheme, 1976  other than the expenses towards the cost of a...

The Labour Ministry has informed the EPFO that its proposal to reduce PF Administrative charges will get approval after the upcoming polls are concluded in four states – Manipur, Goa, Uttarakhand, Punjab and Uttar Pradesh in March. The Election Commission of India have announced the poll dates earlier in the first week of January 2017. The EPFO sent an official proposal to the Ministry of Labour on January 4 th , 2017 to reduce administrative charges for companies from 0.85% to 0.65% of worker’s salary for its EPF scheme. It also proposed doing away with administrative charges 0.01 per cent of worker’s salary levied to implement the EDLI- Employees’ Deposit Linked Insurance scheme, 1976. The decision to reduce administrative charges was taken at EPFO’s central board of trustees meeting, chaired by Labour Minister Bandaru Dattatreya, in December, 2016. “Considering the need to promote ‘ease of doing business’ in India and to make Indian business more competitive, and in response t...

The Labour Ministry has sought a fourfold increase in the threshold limit for tax deduction on provident fund withdrawals, from the existing ₹50,000 to ₹2 lakh, in the coming Budget. This means that if the proposal gets a go-ahead, you may be able to withdraw provident fund savings of up to ₹2 lakh without any tax deduction even if you have not completed five years of continuous service. At present, provident fund withdrawals of more than ₹50,000 before completing five years in service attracts income tax of up to 34.608%. “No tax is required to be deducted on provident fund withdrawal of less than ₹50,000. However, even this limit appears to be too low and may be enhanced to ₹2 lakh keeping in view the deliberations in the meetings of the Central Board of Trustees,” the Employees’ Provident Fund Organisation (EPFO) wrote in a recent letter to the Labour Ministry, which has since been forwarded to the Finance Ministry for inclusion in the Union Budget for 2017-18. The Centre h...

Union Labour Secretary asks employers to make use of the ongoing amnesty scheme for EPF, ESIC Employers should use the ongoing amnesty scheme for EPF and ESIC to ensure all their workers are registered under the social security net, urged M Sathiyavathy , Secretary, Union Labour Ministry. She said this is an opportunity for the employers to regularize their workforce without any concern about previous dues. The scheme is open till March 31. The registration will bring in benefits, such as assured minimum wages and coverage under social security net for healthcare and retirement benefits, she said at the Regional Conference of State Labour Ministers and Secretaries here on Wednesday. The benefits are beginning to show with over 1,400 establishments being registered afresh and over 1 lakh new employees registered under the social security net in the Southern region alone, following the amnesty scheme. Minimum wages have been enhanced, the Model Shops and Establishments Act is pr...

The Unified Portal of EPFO was made operational on 23rd December, 2016. A number of references are being received from the employers highlighting the problems on the portal in upfront allotment of UAN, connectivity issues, login issues, website slowdown/hanging, awareness of new procedures etc. IS division is making efforts to remove the difficulties and stabilize the unified portal. In view of the above, EPFO has decided that, as a special case concession of grace period of 5 days is allowed for the employers to deposit the contribution and other dues for the month of December, 2016 by 20th January, 2017.

The Employees’ Provident Fund Organisation has made it mandatory for its about 50 lakh pensioners and around 4 crore subscribers to provide either Aadhaar or a proof that they have applied for it till 31st Jan 2017  to remain the beneficiary of its social security schemes.   Gazette Notification No.S.O.26(E) dated 01-04-2017  find below 

Employees Provident Fund Organisation has introduced a new Notification, in which special drive will be initiated   from 1st January, 2017 by the EPFO for coverage of the Establishment which are not yet covered but which are liable for EPF coverage. The Establishment which is legally liable for coverage will be covered under the Employees Provident Fund Act. According to the notification, following benefits will be provided to the defaulters: Only Employer Share will be levied, No Employees Share. Interest as applicable on Employer’s Share. Damages @ Rs.1/- Per Annum. The above will be with a condition that, the Establishment is not legally liable before 01.04.2009. (Notification is Attached) New Scheme for PF Defaulters Frequently Asked Questions 1.  What is Employees’ Enrollment Campaign, 2017? This is a Campaign to provide opportunity to the employers to voluntarily come forward and declare details of all such employees who were entitled for PF membership...

The Central government has finally taken away the mandatory status of the Employees’ Provident Fund Organization (EPFO), without amending the EPF Act. Perhaps it remains unnoticed, but the Union cabinet had changed EPFO’s status and communicated it through a cabinet release on textiles sector instead of any release in labour ministry. The cabinet statement said “The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the reforms to boost employment generation and exports in the Made-ups Sector (a sub sector of textiles and apparel)… Simplification of labour laws: Making employees’ contribution to EPF optional for employees earning less than Rs15,000 per month,” This means, employees earning less than Rs15,000 per month in the ‘Made-ups’ sector are no more required to pay the mandatory EPF (Employees’ Provident Fund) contributions from their salary.

This will give opportunity for the firms which have defaulted in payment of contributions of ESI and EPF to declare correct employment figures and ensure correctness in contribution henceforth onwards. Union Minister of State for Labour Bandaru Dattatreya announced two amnesty schemes from his department, one for the ESIC – Employees State Insurance Corporation and another for the EPF – Employees Provident Fund, to clean up the existing records of court cases or proceedings. Addressing a press conference at the State party office on 18 th  December, 2016, the Labour Minister said in that in both instances (EPF and ESI) there are lots of court cases pending for years and in several others proceedings have also been filed for wrong or under reporting of number of employees working or contributions made. Fresh registrations of the firms and the employees working under it can be made from December 20 till March 31, 2017 and once done all the existing ol...

As per new Proposed Employees Provident Fund Amendment 2016 Employees with salary earning up to Rs.25,000 per month will be covered under Employees Provident Fund after the final approval Refer:-  http://streethr.blogspot.in/2016/12/epfo-takes-steps-to-cover-contract.html   The Employees’ Provident Fund Organisation (EPFO)  has written to the Centre Government requesting to increase exciting  PF wage ceiling  to Rs.25,000 from Rs. 15,000 per month for its social security schemes raising the opportunity of more workers being added to the provident fund scheme. All employees earning salary of up to Rs.25,000 per month will be eligible to receive provident fund coverage. At present, Employees Provident Fund is optional for workers earning more than Rs.15,000 per month since current wage limit fixed at Rs. 15,000 According to the minutes of the meeting of EPFO’s sub-committee on contract workers, held on November 7 stated  “It was (unanimously) deci...

Promoting and Ensuring Cashless Transfer of Wages to Workers  Labour and Employment Ministry Efforts bring over Nine Lakh Workers into banking fold within six days  The huge efforts of Labour and Employment Ministry have succeeded in bringing over Nine Lakh workers into banking fold within six days of launching a campaign on 26th November. It may be noted that already 25.68 crore Jandhan Accounts are existing and all the left over workers are being covered.2016 to open bank accounts of workers. Till last evening (1st December,2016) 9,15,431(nine lakh fifteen thousand four hundred and thirty one) bank accounts were opened by organizing 33,145 (thirty three thousand one hundred and fort five) camps for this purpose. Within four days till 29th November, total 3,87,037 bank accounts were opened by holding 15,134 camps across the country. (We had already informed  premium regarding this camps) On30th November 9,085 camps were organized and 2,90,224 bank accoun...

EPFO Takes Steps to Cover Contract Workers in Government Departments  Last Date for Submission of Life Certificate Extended Till 15th January 2017 ECR 2.0, UAN 2.0 and PMRPY Services to be Made Operational from December 2016   A sub-committee of Central Board of Trustees, EPF met on 7th November 2016. The committee noted that the coverage of contract workers increased from 89.25 lakh to 1.02 crore.  The Committee however further noted that large number of contact workers in the country still remain deprived of PF benefits. This is because many Central Government Departments/ Organizations do not come under the purview of the EPF and MP Act, 1952. Considering the social security as the basic right of all workers, it decided to recommend to the Government of India for cancellation of exclusion to such categories, including Indian Railways. The Committee noted that transfer of accounts of contract workers is now possible through Universal Account Number (UA...

Dear Employer, As per the direction of Government of India, the following advisory is issued for your necessary compliance from EPFO Departments  :  "For financial inclusion of worker, all Establishment are advised to make timely payment of wages through bank account. Pre-paid cards of suitable denomination can also be issue for making part payment." Also  Please find the above circular issued dated 25 November 2016 from Ministry of Labour and Employment, New Delhi regarding “launching a campaign to open bank accounts in respect of those workers of organized and unorganized sector who do not have their own bank account till date". To explain further it can say that,  we all seen one of the big changes in Indian currency, thus with that things in mind our Government of India given directives for a campaign which has been launched at various places to open bank accounts of those employees who do not have their own bank account till date....