The EPF organisation has approved the Group Team Insurance Plan offered by M/s star Union Dai-ichi Life Insurance Company Limited in lieu of the Employees' Deposit Linked Insurance Scheme, 1976 - HO No. C-III/16/1(138)10/ MH/ EDLI/ 30284 dated 23/01/2013
The highlights of the Said Insurance Company is as Under:-
The policy is arranged to provide Assurance benefits to the employees with a minimum of Rs. 1,32,000/- as the product m' imum is Rs. 1,32,000/-.
All the members of the Employees' Provident Funds Scheme,1952 in the establishment will be eligible to be members of the policy. The member becomes eligible for the coverage as soon as he/she becomes the member of the Employees' Provident Funds Scheme,1952.
The employer(policy holder) will give an undertaking to the effect that all new members have been included from the date of their joining. If a death claim is received in respect of a member whose premium and/or name is not submitted to M/s Dai-ichi Life Insurance Company Limited, the employer undertakes to provide the benefits for the same.
The primary documents normally required for processing a claim by death are:
(i) Claimant's statement! Claim Form
(ii) Death Certificate issued by the appropriate
authority as per prevailing lawlrule.
(lli) Leave Records [from date of joining this
(iv) Police Panchnama, Police Inquest Report and
FIR copy where applicable
(v) Post Mortem Report in case of accidental
The respective circular to the above effect is enclosed for your ready reference.
Employees generally receive a house rent allowance (HRA) from their employers. HRA is an allowance and is subject to income tax. An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his/her employer. In order to claim the deduction, an employee must actually pay rent for the house which he occupies. The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
* The actual amount of HRA received
* 40% of salary. This increases to 50% if you are renting out the house in major metros in India
* Rent paid minus 10% of salary (basic component + dearness allowance)
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee.
The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that. Example for Calculation of HRA Exemption HRA per month = Rs 15,000 Basic monthly salary = Rs 30,000 Dearness Allowance = Nil Monthly rent = Rs 12,000 Rental accommodation is in Mumbai. Exemption Actual amount of HRA = Rs 15,000 50% of salary = 50% x (30,000 + 0) = Rs 15,000 Actual rent paid – 10% of salary = Rs 12,000 – [10% of (30,000 + 0)] = 12,000 – 3,000 = Rs 9,000 Rs 9,000 being the least of the three amounts will be the exemption from HRA. The balance
In continutation to the earlier circular issued in respect of EPF to link with Adhar , EPF central office New Delhi has issued a fresh circluar in conntection to the captioned subject Pls click the respective attachment as listed below.
Amendment has been arrive in Form-11 for identification of Indian International
Workers - HO No. IWU/7(29)/2012/Review IW/22134 dated 17/10/2012 Pls Update the same in your records & in
ESIC issued new guidelines for Inspection, to their offices. Salient features are as under :a) Effective date is 1st April 2012. b) Less than 250 coverage, inspection will be once in 3 years. c) 250 or more coverage, inspection will be once in 2 years. d) Contractor's Inspection will be annually. e) Apart from Inspection, Inspector will talk to Insured persons (Satisfaction Survey). f) Checking of "Pahachan Card". g) Issues from employees. h) Issues of Employers.
1.Extent the Act.---The Act extends to the whole of India:
Provided that in so far as it relates to plantations a ports,
it shall not extent to the State of Jammu
and Kashmir. Section 1(2).
2.To whom the Act Applies.--- The Act applies to (a) every factory, mine, oilfield,
plantation, port and railway company; (b) every shop or establishment within
the meaning of any law for the time being in force in relationto shops and establishments in a State, in
which ten or mote persons are employed, or were employed, on any day of the
preceding twelve months; and (c) such other establishments a class of
establishments, in which, ten ormore
employees are employed, or were employed, on any day of the preceding twelve
months, as the Central Government may, by notification, specify in this behalf.
3.Definitions----(a) "Appropriate Government" means (i) in relation
to an establishment--
(a) belonging to, or under the control of, the Central Government,
(b)having branches in more than one State,
(c) of a factory belonging to, or under the control of, the Central
(d) of a major port, mine, oilfield or railway company, the Central
(ii)in any other case, the
State Government. Section 2(a).
(b) "Completed year of service" means continuos service for
one year. Section 2(b).
(c) "Continuos Service" means uninterrupted service and
includes service which is interrupted by sickness, accident, leave, lay-off,
strike or a lock-out or cessation of work not due to any fault of the employees
concerned, whether such uninterrupted or interrupted service was rendered
before or after the commencement of this Act.
Explanation I.---In the cease of an employee who is not in uninterrupted
service for one year, he shall be deemed to be in continuous service if he has
been actually employed by an employer duringthe twelve months immediately preceding the year for not less than--
(i)190 days, if employed below
the ground in a mine, or
(ii)240 days, in any other
case, except when he is employed in a seasonal establishment.
Explanation II,---- An employee of a
establishment shall be deemed to be in continuos service if he has actually
workedfor not less than seventy-five
per cent of the number of days on which the establishment was in operation
during the year. Section 2(d)·
authority” means an authority appointed by an appropriate Government under
Section 3. Section 2(d).
in relation to an employee, shall be deemed to consist of---
(i)in the case of a male
employee, himself, his wife, his children, whether married or unmarried,
hisdependent parents and the widow and
children, of his predeceased son, if any,
(ii)in the case of a female employee, herself, her husband, her
children, whether married or unmarried, her dependent parents and the dependent
parents of her husband and the widow and children of her predeceased son, if
Provided that if a female employee, by a notice in writing to
the Controlling Authority, expresses to her desire to exclude her husband from
her family, the husband and his dependent parents shall no longer be deemed,
for the purposes of this Act, to be included in the family of such female
employee unless the said notice is subsequently withdrawn by such female employee.
Explanation:-- Where the personal law of an employee permits the adoption by him
of a child, any child lawfully adopted by him shall be deemed to be included in
his family, and where a child of an employee has been adopted by another person
and such adoption is under the personal law of the person making such adoption,
lawful, such child shall be deemed to be excluded from the family of the
4. Nomination.---(1) Each employee, who has completed one year of service,
after the commencement of the Payment of Gratuity (Central) Rules, 1972 shall
make within thirty days of completion of one year of service, a nomination.
Section 6(1) read with Rule 86(I1)
(2)If an employee has a family at the time of making a nomination, the
nomination shall be made in favour of one or more members of his family and any
nomination made by such employee in favour of a person who is not a member of
his family shall be void. Section 6(3).
(3) If at the time of making a nomination, the employee has no family,
the nomination can be made in favour of any person or persons, but if the
employee subsequently acquires a family, such nomination shall forthwith become
invalid and the employee shall make within 90 days fresh nomination in favour
of one or more members of his family. Section 6(4) read with Rule 6(3).
(4) A nomination or a fresh nomination or a notice of modification of
nomination shall be signed by the employee or, if illiterate, shall bear his
thumb-impression in the presence of two witnesses, who shall also sign a
declaration to that effect in the nomination, fresh nomination or notice of
modification of nomination as the case may be. Rule 6(5).
(5) A nomination may, subject to the provisions of sub-sections (3) and
(4) of Section 6, be modified by an employee any time after giving to his
employer a written notice of his intention to do so. Section 6(5).
(6) A nomination or fresh nomination or notice of modification of
nomination shall take effect from the date of receipt of the same by the
employer. Rule 6(6).
5. Application for gratuity.---(1) An employee who is eligible for payment of gratuity under
the Act, or any person authorised, in writing, to act on his behalf, shall
apply ordinarily within thirty days from the date gratuity becomes payable:
Provided that where the date of superannuation or retirement of
an employee is known, the employee may apply to such employer before thirty
days of the date of superannuation or retirement. Rule 7(1).
(2) A nominee of an
employee who is eligible for payment of gratuity shall apply, ordinarily within
thirty days from the date the gratuity became payable to him, to the employer.
(3) A legal heir of an
employee who is eligible for payment of gratuity shall apply, ordinarily within
one year from the date the gratuity became payable to him, to the employer.
(4) An application for
payment of gratuity filed after the expiry of the periods specified above shall
also be entertained by the employer if the applicant adduces a sufficient cause
for the delay. Rule 7(5).
6. Payment of gratuity.--(1) Gratuity shall be payable to an employee on the termination
of his employment after he has rendered continuous service for not less than
(a)on his superannuation, or
(b) on his retirement or
(c)on his death or
disablement due to accident or disease:
Provided that the completion of continuous service of five
years shall not be necessary where the termination of the employment of any
employee is due to death or disablement.
Disablement means such disablement which incapacitates an
employee for the work which he was capable of performing before the accident or
disease resulting in such disablement. Section 4(1).
(2)For every completed
year of service or part thereof in excess of six months, the employer shall pay
gratuity to an employee at the rate of fifteen days' wages based on the rate of
wages last drawn by the employee concerned:
Provided that in the case of a piece-rated employee, daily
wages shall be computed on the average of the total wages received by him for a
period of three months immediately preceding the termination of his employment,
and, for this purpose, the wages paid for any overtime work shall not be taken
Provided further that in the case of an employee employed in a
seasonal establishment, the employer shall pay the gratuity at the rate of
seven days' wages for each season. Section 4(2).
(3) The amount of
gratuity payable to an employee shall not exceed twenty months wages. Section
7. Forfeiture of gratuity.--(1) The gratuity of an employee, whose services have been
terminated for any act, wilful omission or negligence causing any damage or
loss to, or destruction of, property belonging to the employer, shall be
forfeited to the extent of the damage or loss so caused.
(2)The gratuity payable
to an employee shall wholly be forfeited--
(a) if the services of such employee have been terminated for his
riotous or disorder conduct or of any other act of violence on his part, or
(b)if the services of such employee have been terminated for any act
which constitutes an offence involving moral turpitude, provided that such
offence is committed by him in the course of his employment. Section 4(6).
8:Notice of opening, change or closure of the establishment.--(1) A notice shall be submitted by the employer to the
controlling authority of the area within thirty days of any change in the name,
address, employer or nature of business. Rule 3(2).
(2) Where an employer
intends to close down the business he shall submit a notice to the controlling
authority of the area at least sixty days before the intended closure. Rule
9. Application to
Controlling Authority for direction: If an employer---
(i)refuses to accept a
nomination or to entertain an application for payment of gratuity, or
(ii)issues a notice either
specifying an amount of gratuity which is considered by the applicant less than
what is payable or rejecting eligibility to payment of gratuity, or
(iii) having received an application for
payment of gratuity, fails to issue notice within fifteen days; the claimant
employee, nominee, or legal heir, as the case may be, may within ninety days of
the occurrence of the occurrence of the cause for the application, apply to the
controlling authority for issuing a direction under sub-section (4) of Section
7 with as many extra copies as are the opposite party:
Provided that the controlling authority may accept any
application on sufficient cause being shown by the applicant, after the expiry
of the period of ninety days. Rule 10.
10. Appeal.--- Any person aggrieved by an order of the controlling authority may,
within sixty days from the date of the receipt of the order, prefer an appeal
to the Regional Labour Commissioner (Central) of the area, who has been
appointed as the appellate authority by the Central Government:
Provided that the appellate authority may, if it is satisfied
that the appellant was prevented by sufficient cause from preferring the appeal
within the said period of sixty days, extend the said period by a further
period of sixty days. Section 7(7).
11Machinery for enforcement
of the Act or Rules in Central sphere:---All Assistant Labour Commissioners (Central) have been appointed
as Controlling Authorities and all the Regional Labour Commissioners (Central)
as Appellate Authorities.
12.Powers of the Controlling
Authority:--- The Controlling Authority
for the purpose of conducting an inquiry as to the amount of gratuity payable
to an employee or as to the admissibility of any claim of, or in relation to,
an employee for payment of gratuity, or as to the person entitled to receive
the gratuity, shall have the same powers as are vested in a court, under the
Code of Civil Procedure, 1908, in respect of the following matters, namely---
(a)enforcing the attendance of
any person or examining him on oath;
(b)requiring the discovery and
production of documents;
(c) receiving evidence on affidavits; and
(d)issuing commissions for the examination of witnesses. Section 7(5).
13.Recovery of gratuity.--If the amount of gratuity payable is not paid by the employer,
within the prescribed time to the person entitled thereto, the controlling
authority shall, on an application made to it in this behalf by the aggrieved
person, issue a certificate for that amount to the Collector, who shall recover
the same, together with compound interest thereon at the rate of nine per cent
per annum, from the date of expiry of the prescribed time, as arrears of land
revenue and pay the same to the person entitled thereto.
14. Protection of gratuity: No gratuity payable under the Payment of Gratuity Act and the
rules made thereunder shall be liable to attachment in execution of any decree
or order of any civil, revenue or criminal court. Section 13.
15. Penalties for offences.-(1) Whoever, for the purpose of avoiding any payment to be made
by himself or of enabling any other persons to avoid such payment, knowingly
makes or causes to be made any false statement or false representation, shall
be punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with both. Section 9(1).
(2)An employer who
contravenes, or makes default in complying with, any of the provisions of the
Act or any rule or order made thereunder shall be punishable with imprisonment
for a term which may extend to one year, or with fine which may extend to one
thousand rupees, or with both:
Provided that if the offence relates to non-payment of any
gratuity payable under the Payment of Gratuity Act, the employer shall be
punishable with imprisonment for a term which shall not be less than three
months unless the court trying the offence for reasons to be recorded by it in
writing, is of opinion that a lesser term of imprisonment or the imposition of
a fine would meet the ends of justice. Section 9(2).
16.Display of Notice: The employer shall display conspicuously a notice at or near the
main entrance of the establishment in bold letters in English and in the
language understood by the majority of the employees specifying the name of the
Officer with designation authorised by the employer to receive on his behalf
notices under the Payment of Gratuity Act or the rules made thereunder. Rule 4.
17.Display of Abstract of
the Act and Rules: The employer shall
display an abstract of the Payment of Gratuity Act and the rules made
thereunder in English and in the language understood by the majority of the
employees at a conspicuous place at or near the main entrance of the
establishment. Rule 20.