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Thursday, April 13, 2017

Under ESIC 2.0 New District covered from 1st Apr 2017


From 1st Apr 2017 New district are covered under ESIC 2.0 

Jammu & Kashmir  :- ๐Ÿ‘‰14 New Distric of Jammu & Kashmir Covered from 1st Apr 2017

Chhattisgarh :-๐Ÿ‘‰17 New District Covered under ESIC of Chhatisgarh 1.4.2017

ESIC Spree Scheme Extended till 30th June 2017

ESIC Spree Scheme has been extended till 30th June 2017  necessary circular is given below

๐Ÿ‘‰Esic spree scheme extended till 30th June 2017

Latest News on EPFO


  • Aadhaar Seeding Application launched by Shri Bandaru Dattatreya 
  • Minimum assured amount on death in service and loyalty cum life benefit to EDLI members on superannuation recommended to Government
The Central Board (EPF) under the chairmanship of Union Minster of State for Labour and Employment (Independent Charge) Shri Bandaru Dattatreya held its 217th special meeting in New Delhi. 

In pursuance to the policy of the Government for optimum use of information technology for efficient service delivery and widening the reach of EPF benefits, Hon’ble Minister of Labour & Employment, Sh. Bandaru Dattatreya launched Aadhaar Seeding Application. The EPFO has developed this Aadhaar seeding application with support of the Common Service Centers (CSC) and CDAC. The CSCs are ICT enabled front end service delivery points at the village level for delivery of Government and private services. With the implementation of Aadhaar Seeding Application, now Provident Fund member or pensioner can walk in any of the field offices of EPFO or CSC outlets with UAN & Aadhaar and seed the Aadhaar with the UAN. 

The Board has recommended a proposal of extending minimum assured benefit of Rs.2,50,000/- (Rs. Two lakh fifty thousand) on death of EDLI member. Provisions have also been recommended in EDLI Scheme for Loyalty cum life benefit to members on superannuation on completion of 58/60 years of age/total and permanent disablement with minimum 20 years of contributory service as a pilot project for two years. Thereafter the scheme will be reviewed

Central Board also took note of the fact that EPFO has enrolled 49,39,929 workers during 01.01.2017 to 31.03.2017. 

Sunday, April 02, 2017

Governor of Tamil Nadu in public interest has exempted all establishments from the provision of sub-section (1) of Section 11 of the Tamil Nadu Shops and Establishment Act and has permitted all the establishments in the State of Tamil Nadu to keep open on all 365 days of the year, for a further period of three years with effect from 23rd March 2017. (Please refer the notification for detailed information) 
๐Ÿ‘‰Tamil Nadu Shops Permitted To Remain Open 365 Days A Year For Three Years

Madhya Pradesh Minimum Wages 1st Apr 2017 to 30th Sep-2017





Minimum Wages of Madhya Pradesh has been revised from 1st Apr 2017 to 30th Sep-2017

The respective snap shot is for the category  as mentioned in the notification on page number  6 & 7 

Notification ๐Ÿ‘‰Mp Minimum wages 1st Apr 2017


 

Friday, March 31, 2017

Gujarat Minimum Wages 1st Apr-2017 to 30th Sep-2017

Gujarat Minimum wages has been revised from 
1st Apr 2017 to 30th Sep-2017 Old DA per Day was 
Rs 20.80 which has increased to Rs 29.60 hike of 
Rs 8.80/-

Necessary Notification in Gujarati appended below
๐Ÿ‘‰Gujarat Minimum wages 1st Apr 2017-30sep-2017-Official Signed copy

Industry wise details ( English Version):- 
๐Ÿ‘‰Gujarat Minimum Wages 1st Apr 2017 to 30th Sep-2017-Industries Wise

Thursday, March 30, 2017

EPF Amnesty Scheme Extended Till 30th June 2017

An Employees’ Enrolment 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  necessary notification has been appended below 
๐Ÿ‘‡
EPF Amnesty Scheme Extended till 30th June 2017

Wednesday, March 29, 2017

Maternity Benefit Act amendment 2017

A Long awaited Maternity Benefit Act amendment is passed by both the house necessary Notification is appended below๐Ÿ‘‡

Maternity Benefit Act Ammedment 2017

The Bill seeks to amend the Maternity Benefit Act, 1961 to provide for the following:- 
  • (i) Maternity leave available to the working women to be increased from 12 weeks to 26 weeks for the first two children. 
  • (ii) Maternity leave for children beyond the first two will continue to be 12 weeks. 
  • (iii) Maternity leave of 12 weeks to be available to mothers adopting a child below the age of three months as well as to the “commissioning mothers”. The commissioning mother has been defined as biological mother who uses her egg to create an embryo planted in any other woman. 
  • (iv) Every establishment with more than 50 employees to provide for crรจche facilities for working mothers and such mothers will be permitted to make four visits during working hours to look after and feed the child in the crรจche. 
  • (v) The employer may permit a woman to work from home if it is possible to do so. 
  • (vi) Every establishment will be required to make these benefits available to the women from the time of her appointment. 
The Minister of Women and Child Development, Smt. Maneka Gandhi thanked the Minister for Labour and Employment, Shri Bandaru Dattatreya for taking up the demand of lakhs of women across the country and for having steered the Bill through Rajya Sabha as well as the Lok Sabha. In her message to the working women, Smt. Gandhi congratulated the women who are planning to have a child and has stated that the Ministry of Women and Child Development will continue to work for the empowerment of women. 

uttarpradesh Minimum Wages 1st Apr 2017 to 30th Sep-2017

Uttarpradesh Minimum Wages 1st Apr 2017 to 30th Sep-2017
๐Ÿ‘‡

Uttarpradesh Minimum Wages 1st Apr 2017 to 30th Sep-2017

Thursday, March 16, 2017

EPF Admin Charges Reduce from 0.85% to 0.65 % from 1st Apr 2017

Good News from 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 any benefits provided by or under that scheme. i.e A/C 22 will be  Zero


Necessary Notification :-๐Ÿ‘‰๐Ÿ‘‰No PF Admin Charges No PF EDLI 1st Apr 2017

Latest Rules On Provident Fund Withdrawal You Should Know: 10 Facts



According to provident fund norms, 12 per cent of an employee’s salary goes into the fund along with a matching contribution from the employer.

The Employees’ Provident Fund Organisation (EPFO) has been taking many steps to ease the process of provident fund (PF) money withdrawal. The PF money can be withdrawn after two months from the cessation of employment. The application form can be filed with the PF authorities or through the employer. PF is meant for saving towards retirement years. Financial planners advise not to withdraw from the corpus before retirement. According to provident fund norms, 12 per cent of an employee’s salary goes into the fund along with a matching contribution from the employer. The Employees’ Provident Fund Organisation every year announces interest rate to be paid on the accumulated provident fund corpus.

Here are 10 things to know:

1) To encourage long-term savings, the government has formulated tax laws accordingly. If the withdrawal from a recognised PF happens after five years of continuous employment, it attracts no tax liability. In case of employment with different employers, if the PF balance maintained with the old employer is transferred to the PF account of the new employer, it is considered a continuous employment.

2) If an employee has been terminated because of certain reasons beyond his or her control (such as ill health and discontinuation of business of employer), the withdrawal does not attract any tax, irrespective of the number of years of employment.

3) In case of a withdrawal before five years, the amount becomes taxable in the same financial year. Thus, the amount has to be shown in your tax return for the next assessment year. The employer’s contribution to PF and interest earned on it is added to one’s income and taxed accordingly.

4) In addition, if you have claimed benefits under Section 80C on your own PF contribution, it will be taxed as salary. The interest earned on your own contribution will be taxed as ‘income from other sources’ and taxed according to the respective tax slabs.

5) TDS (tax deducted at source) – If the withdrawal is after a period of five years of continuous employment, it attracts no TDS or any tax. What happens if the period of service is less than five years? If PAN has not been submitted to the EPFO authorities, TDS is deducted at 30 per cent. If PAN has been submitted along with Form 15G/15H, no TDS is deducted. If form 15G/15H is not submitted and PAN is submitted, TDS @ 10% is deducted. Form 15H or 15G is meant to prevent TDS for those whose income falls below the taxable limit.

6) The funds transferred from a recognised provident fund (PF) account to a National Pension System (NPS) account will not attract any tax, Pension Fund Regulatory and Development Authority (PFRDA) said in a circular dated March 6. “The amount so transferred from recognised Provident Fund/Superannuation Fund to NPS is not treated as income of the current year and hence not taxable,” the pension fund regulator said.

7) The Employees’ Provident Fund Organisation has come out with a single-page form for provident fund related claims – from provident/pension fund withdrawal to the advance facility.

8) In addition, an Employees’ Provident Fund Organisation or EPFO subscribers can submit the new one-page form directly to the retirement fund body without the employer’s attestation if their accounts are seeded with Aadhaar and bank account details.

9) For subscribers who are yet to seed Aadhaar and bank details, a new composite claim form has been introduced which has to be submitted with attestation of employers for any claims.

10) Also, no other document would be required to be submitted by the subscriber for taking advances from the provident fund corpus. A provident fund subscriber can go for partial withdrawal/advance from his or her corpus for specific purposes like purchase of flat, construction.

Friday, March 10, 2017

Maternity Benefit (Amendment) Bill, 2016 passed in the Parliament


The Lok Sabha has passed the Maternity Benefit (Amendment) Bill, 2016 today. The Bill had already been passed by the Rajya Sabha during the Winter Session. With this, the Bill stands passed in the Parliament. 



The Bill seeks to amend the Maternity Benefit Act, 1961 to provide for the following:- 
  • (i) Maternity leave available to the working women to be increased from 12 weeks to 26 weeks for the first two children. 
  • (ii) Maternity leave for children beyond the first two will continue to be 12 weeks. 
  • (iii) Maternity leave of 12 weeks to be available to mothers adopting a child below the age of three months as well as to the “commissioning mothers”. The commissioning mother has been defined as biological mother who uses her egg to create an embryo planted in any other woman. 
  • (iv) Every establishment with more than 50 employees to provide for crรจche facilities for working mothers and such mothers will be permitted to make four visits during working hours to look after and feed the child in the crรจche. 
  • (v) The employer may permit a woman to work from home if it is possible to do so. 
  • (vi) Every establishment will be required to make these benefits available to the women from the time of her appointment. 
The Minister of Women and Child Development, Smt. Maneka Gandhi thanked the Minister for Labour and Employment, Shri Bandaru Dattatreya for taking up the demand of lakhs of women across the country and for having steered the Bill through Rajya Sabha as well as the Lok Sabha. In her message to the working women, Smt. Gandhi congratulated the women who are planning to have a child and has stated that the Ministry of Women and Child Development will continue to work for the empowerment of women. 



The amendments in the Bill were taken up following the request by the WCD Minister to the Hon’ble Labour Minister to bring about these changes so that a working woman gets time to exclusively breast-feed her child for 6 months after the birth. This period also enables the working mother to recuperate herself before she goes to back to work. In her communication to the Labour Ministry, the WCD Minister had also highlighted the concerns of commissioning and adopting mothers who also require maternity leave.

Gazzeted Copy Awaited

Wednesday, March 08, 2017

Delhi Revised Minimum Wages effective 4th Mar 2017

Delhi Minimum Wages have been revised W.E.F 4th Mar 2017 necessary Gazetted Notification is enclosed 

 REVISED MINIMUM WAGES 

Category of Workmen/ Employees
Per Month (Rs.)
Per Day (Rs.)
Unskilled
13,350.00
513.00
Semi- Skilled
14,698.00
565.00
Skilled
16,182.00
622.00
Clerical and Supervisory Staff
Non Matriculate
14,698.00
565.00
Matriculate but not Graduate
16,182.00
622.00
Graduate and above
17,604.00
677.00

              ๐Ÿ‘‡
   Delhi Minimum Wages Notification Basic 4th March 2017

Friday, March 03, 2017

Introduction of Revised New Pension claim Form No 10-D

Central Government issued Gazette Notification No. S.O. 26(E) dated 04.01.2017 vide which it was notified that members and pensioners of the Employees' Pension Scheme desirous of continuing to avail pension and membership to the Employees' pension Scheme by availing the Central Government's contribution and subsidy under the said Scheme, are required to furnish proof of the possession of the Aadhaar number or undergo Aadhaar authentication for better and hassle free identification through Aadhaar.

Accordingly, the simplified UAN based pension claim Form 10-D has been revised as Pension claim Form (Aadhaar) (copy enclosed)


i)  The AADHAAR Number and the Bank A/c number of the employee are seeded      as and digitally verified by the employer.
(ii) All the details of the employee are available in Form No. I I (New).
(iii) A cancelled cheque containing the name of the employee, Bank ale number and IFS code is attached with the Claim Form.

All employees applying for pension may, after satisfying above conditions, submit Pension Claim Form (Aadhaar) directly to the respective jurisdictional Employees' Provident Fund Office. The attestation of employers on such Pension Claim Form (Aadhaar) is not required

Haryana Minimum Wages 1st Jan 2017

Haryana Minimum wages have been revised effective from 1stg Jan 2017


S.NO.
Category

Monthly Wage
Daily Wage
1
UNSKILLED

8280.20
318.46
2
SEMI-SKILLED-A

8694.20
334.39

SEMI-SKILLED-B

9128.91
351.11





3
SKILLED-A

9585.35
368.66

SKILLED-B

10064.62
387.10





4
HIGHLY SKILLED

10567.85
406.45





5
Clerical & General Staff
(i) Below Matriculation
8694.20
334.39


(ii) Matriculation but not Graduate
9128.91
351.11


(iii) Graduate or above
9585.35
368.66


(iv) Steno Typist
9128.91
351.11


(v) Junior Scale Stenographer
9585.35
368.66


(vi) Senior Scale Stenographer
10064.62
387.10


(vii) Personal Assistant
10567.85
406.45


(viii) Private Secretary
11096.25
426.77





6
Data Entry Operator

9585.35
368.66





7
Driver
Light Vehicle
10064.62
387.10


Heavy Vehicle
10567.85
406.45





8
Security Guard
without weapon
8694.20
334.39


with weapon
10064.62
387.10





9
Security Inspector / Security Officer / Security Supervisor

10567.85
406.45





10
Safai Karamchari in any employment

8824.95
339.42

 The Associations of Employers have challenged the earlier notification prohibiting splitting of minimum wages into allowances and the writ petitions are pending for disposal with the Punjab & Haryana High Court.  However, no stay has been granted.  


Hindi Version Notification Haryana 01-01-2017 ๐Ÿ‘ˆ

Monday, February 27, 2017

Goa New Minimum wages W.E.F from 1st Oct 2016

Goa Minimum wages have been revised from 1st Oct 2016 as the Consumer Price Index has been increase to Rs 1.90/- Per day pls find below the respective details

Old Minimum wages as on 25th May 2016 :- GG_Minwages-2016

New Minimum wages 1st Oct 2016:- Goa Mini. Wages Notification 1st Oct 2016

Sunday, February 26, 2017

Sunday, February 12, 2017

Implementation of ESI Act 1948 within the Municipal Limits of Districts Headquarters of 29 District, in the State of Madhya Pradesh.

As Per ESIC 2.0 Program Phase  in regards  covering Non implemented areas to Implement areas , in the State of Madhya Pradesh , Municipal Limits of Districts Headquarters of 29 District,  is covered under Esic from 1st Feb 2017 

Implementation of ESI Act 1948 within the Municipal Limits of Districts Headquarters of 29 District, in the State of Madhya Pradesh

Implementation of ESI Act 1948 within the Municipal Limits of Districts Headquarters of 14 District, in the State of Kerala.

As Per ESIC 2.0 Program Phase  in regards  covering Non implemented areas to Implement areas , in the State of Kerala, Municipal Limits of Districts Headquarters of 14 District,  is covered under Esic from 1st Feb 2017 

Necessary Notification is appended below 

Implementation of ESI Act 1948 within the Municipal Limits of Districts Headquarters of 14 District, in the State of Kerala

Sunday, February 05, 2017

Maharashtra Minimum Wages 1st Jan 2017 to 30th June 2017

Dear all,

Enclosed is the Maharashtra Minimum  Wages Maharashtra Minimum  Wages 1st Jan 2017 to 30th June 2017, In the said Minimum wages revision Pls add 5% HRA( As per Maharashtra Minimum  HRA Act 1983)  if no of employee count is more than 50. 


Pls refer to the said attach if anything have been missed out or any correction is to be done pls suggest me.

English Version :- Maharashtra MW 01-01-2017 to 30-06-2017





Wednesday, January 25, 2017

ESIC Implementation in Entire Hooghly District 1st Jan 2017

 As Per ESIC 2.0 Program Phase  in regards  covering Non implemented areas to Implement areas entire Hooghly district  is covered under Esic from 1st Jan 2017 

Necessary Notification is appended below 

ESIC Implementation of Entire Hooghly District

New Year Gift to Female Employees from ESIC in regards to Maternity Benefit Act from 20th Jan 2017




G.S.R. 62(E).—Whereas draft rules further to amend the Employees’ State Insurance (Central) Rules, 1950 were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R. 958(E), dated the 6th October, 2016, as required under sub-section (1) of section 95 of the Employees’ State Insurance Act,

1948(34 of 1948), inviting objections and suggestions from all persons likely to be affected thereby before the expiry of a period of thirty days from the date on which the copies of the Gazette containing the said notification was published were made available to the public;

And whereas, copies of the said Gazette were made available to the public on the 6th October, 2016;

And whereas, no objections and suggestions were received from persons in respect of the said rules; Now, therefore, in exercise of the powers conferred by section 95 of the Employees’ State Insurance Act,1948(34 of 1948), the Central Government after consultation with the Employees’ State Insurance Corporation, hereby makes the following rules further to amend the Employees’ State Insurance (Central) Rules, 1950, namely:-

(b) in rule 56, in sub-rule (2),--
(i) for the words “ twelve weeks of which not more than six weeks”, the words “twenty-six weeks of which not more than eight weeks” shall be substituted;

(ii) after the first proviso, the following provisos shall be inserted, namely:--
Provided further that the insured woman shall be entitled to twelve weeks of maternity benefit from the date the child is handed over to the commissioning mother after birth or adopting mother, as the case maybe: 

Provided also that the insured woman having two or more than two surviving children shall be entitled to receive maternity benefits during a period of twelve weeks of which not more than six weeks shall precede the expected date of confinement.



Wednesday, January 18, 2017

EPF dues solely on the basis of balance sheet without identification of beneficiaries is not sustainable

Assessment of EPF dues solely on the basis of balance sheet without identification of beneficiaries is not sustainable

An appeal was filed by the appellant before the Employees' Provident Fund Appellate Tribunal, challenging the order dated 23.09.2011, passed by the EPF Authority, under section 7-A of the Act.
Brief Facts:
Dues were assessed on the basis of balance sheet without identification of beneficiaries on EO's report. Appellant's contention is that employees were engaged through different registered contractors from time to time. EPF Authority submitted that the appellant neither produced list of contractors nor list of employees and in such circumstances there was no option with the department, except to pass the impugned order.
Reasons & Decision:
The entire case of assessment of EPF dues is for the period April 2005 to March 2011. Neither EO nor the EPF Authority is known to the beneficiaries till date. Dues, if collected, would not give any benefit to any of the employees. Hence, impugned order is sets aside. Matter is remanded back to the EPF Authority for passing a speaking order by getting joined the alleged contractors, having identified the beneficiaries and only on the basis of balance sheet, in accordance with law. Appellant is supposed to furnish complete list of contractors and employees within 2 months from the date of this order to the EPF Authority. Any amount deposited shall not be disbursed till further order.
Food Corporation of India vs. APFC, Jabalpur
ATA No. 09 (8) 2012 decided on 7.11.2016 

Thursday, January 12, 2017

EPFO gives 5 Days Grace period for Payment of Dec-2016

Dear all,

In  regards to the New ECR 2.0 version  unified portal was not responding due to connectivity issues etc in regards to the same  the Competent Authority 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.
  
EPFO 5 Days Grace period of Dec 2016

Wednesday, January 11, 2017

Increase In Limit For Applicability Of Maharashtra Contract Labour And Regulation Act

As per the Notification of Maharashtra Act II of 2017, Part VIII Ext. 4 published in official gazette of Maharashtra, the Contract Labour (Regulation and Abolition), Act 1970 will be applicable to every principal employer and Contractor who employs fifty or more workers W.E.F 5th Jan 2017

Gazeeted Copy 


Sunday, January 01, 2017

The Payment Of Wages (Amendment) Ordinance 2016

As per The Payment Of Wages (Amendment) Ordinance, 2016, all wages must be paid in current coin or in currency notes or by cheque or by crediting the wages in the bank account of the employee. Provided that the appropriate government may, by notification in the official gazette, specify the industrial or other establishment, where the employer shall pay to every person employed the wages only by cheque or by crediting the wages in his bank account

Notification in regards to respective amendment


Saturday, December 31, 2016

EPF New Year Gift for Establishment which is legally liable for coverage from 1.4.2009



Good News
PF has  comeout with Notification , accordingly,  special survey drive will be initiated from 1st Jan 2017 by department for coverage of the Establishment.
The Establishment which is legally liable for coverage will be covered under the Act.
Benefits are as below;
1. Only Employer Share will be levied. 
2. Interest as applicable on Employer's Share.
3. Damages @ Rs.1/- Per Annum. 
4. No Employees Share. 

The above will be with a condition that, the Establishment is not legally liable before 01.04.2009.

Necessary Notification is as under 

Employees’ Provident Funds (Seventh Amendment) Scheme, 2016

Damages @ Rs.1/- Per Annum. :Damages=for New Coverage from 1st Apr 2009


Edli No Dues to be Paid:- EDli No Contribution for New Covereage from 1st Apr 2009


EPF Scheme amendment :- EPF Schmene ammedment for New Coverage frm 1st Apr 2009



Tuesday, December 27, 2016

ESIC Limit increase from Rs 15000 to Rs 21000 W.E.F from 1st Jan 2017

ESIC limit has been increased from 1st Jan 2017 from Rs 15000 to Rs 21000 

Draft rules were published on 6th October 2016 and whereas, objections and suggestions received from persons likely to be affected thereby have been considered by the Central Government 

Now, therefore, in exercise of the powers conferred by section 95 of the said Act, the Central Government, after
consultation with the Employees’ State Insurance Corporation, hereby makes the following rules further to amend the Employees’ State Insurance (Central) Rules, 1950, namely:-

1. (1) These rules may be called the Employees’ State Insurance (Central) Third Amendment Rules, 2016.

(2) They shall come into force from 1st day of January, 2017.

2. In the Employees’ State Insurance (Central) Rules, 1950, in rule 50, for the words “fifteen thousand rupees” occurring at both the places, the words ‘twenty one thousand rupees” shall be substituted.

Notification copy :- ESIC Notification on 21K limit

Wednesday, December 21, 2016

Government Clarification on Amendment to Payment of Wages Act

It is seen from the media reports that there is a general impression that is being created that the Government is bringing an amendment to the Payment of Wages Act to make mandatory the payment of wages to the workers only through cheque or accounts transfers. This is not the correct position.

It is clarified that the government proposes to bring an amendment to Section 6 of the Payment of Wages Act which will further provide crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes.

This is being done to facilitate the employers from making payment of wages using the banking facilities also in addition to the existing modes of payment of wages in current coin or currency notes.

Also, the appropriate Government (Centre or State) will have to come up with the notification to specify the industrial or other establishments where the employer shall pay wages through cheque or by crediting the wages in employees’ bank account. It is, therefore, clear that the option of payment through cash is still available with the employers for payment of wages.

It may be understood that the Payment of Wages Act was passed in the year 1936 (eighty years ago) and the situation prevailing at that point of time has completely undergone a technological revolution. Most of the transactions now take place through the banking channels. The proposal of Ministry of Labour and Employment to bring an amendment to Section 6 of the Act is an additional facility of crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes.

The above proposed amendment will also ensure that minimum wages are paid to the employees and their social security rights can be protected. Thus the employers can no longer under-quote the number of employees employed by them in their establishments to avoid becoming a subscriber to the EPFO or ESIC schemes.

It is also pointed out that the states like Andhra Pradesh/Telangana, Kerala, Uttarakhand, Punjab and Haryana have already come out with notifications to provide for payment through banking channels. 


@courtesy http://pib.nic.in/newsite/PrintRelease.aspx

Monday, December 19, 2016

EPFO fixes 8.65% interest rate for PF deposits, cut from 8.8%

Retirement fund body EPFO today decided to lower the interest on EPF deposits for the current fiscal to 8.65 per cent, from 8.8 provided in 2015-16, for its over four crore subscribers. 

"The Employees Provident Fund Organisation's apex decision making body, the Central Board of Trustees (CBT), has taken a decision to lower the interest rate to 8.65 per cent for the current fiscal from 8.8 in 2015-16," Indian National Trade Union Congress Vice-President Ashok Singh told PTI after the meeting at Bengaluru.


Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay also said that 8.65 per cent rate of interest is fixed on EPF deposits for 2016-17. 

As per the EPFO income projections, retaining 8.8 per cent rate of interest for the current fiscal would have left a deficit of Rs 383 crore. 

However, the body could have utilised about Rs 409 crore surplus with it, which accrued after providing 8.8 per cent rate of interest for 2015-16, to retain the same rate of return for the current fiscal.


A surplus of about Rs 69.34 crore was stipulated if interest rate was to be lowered to 8.7 per cent. 

EPFO has projected income of Rs 39,084 crore for the current fiscal. 

As per sources, the Finance Ministry has been asking the Labour Ministry to align the EPF interest rate with other small saving schemes of the government like Public Provident Fund (PPF). 

In September, the government reduced interest rates on small savings schemes marginally by 0.1 per cent for the October-December quarter of 2016-17, which resulted in lower returns on PPF, Kisan Vikas Patra, Sukanya Samriddhi Account, among others 

The Labour Ministry however wanted to retain 8.8 per cent for the current fiscal as well, a source said 
@COURTESY conomictimes.indiatimes.com/