All about 7th Central Pay Commission for Central Government Employees. Dearness Allowance for Government Employees, CENTRAL GOVERNMENT EMPLOYEES NEWS - DOPT, DOPT Orders, Expected DA & more.
Ministry of Labour & Employment EPFO settles 1.37 Lakh EPF withdrawal claims to fight Covid-19 in less than 10
days
10 APR 2020
Employees Provident Fund Organisation (EPFO), an statutory body under Union Ministry of Labour & Employment has processed about 1.37 lakh claims
across the country disbursing an amount of Rs. 279.65 crore under a new provision especially formulated by amending the EPF Scheme to help
subscribers fight Covid-19. The remittances of the moneys has already started taking place. The system as it stands today is processing all
applications which are fully KYC compliant within less than 72 hours. Members, who have applied for claims in some other category, can also file
claim to fight pandemic and depending upon the KYC compliance condition of each member, every effort is being made to settle claims at the
earliest.
The provision for a special withdrawal from the EPF Scheme to fight Covid-19 pandemic is part of the PMGKY scheme announced by the government and
an urgent notification on the matter was made to introduce a para 68 L (3) of the EPF Scheme on 28th March 2020. Under this provision non-
refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member's
credit in the EPF account, whichever is less, is provided. The member can apply for lesser amount also. This, being an advance, does not attract
income tax deductions.
Anticipating the huge surge in the demand, EPFO came out with acompletely new software which has been developed from scratch and a receipt module
for on-line receipt of the claims was introduced within 24 hours and deployed on 29th March 2020. Further, the application was required to be in
paperless form to curtail any physical movement in view of social distancing. It was decided to introduce a system of settling claims in auto mode
directly by the system in respect of all such members whose KYC requirements was complete in all respects.
The COVID-19 pandemic has posed a
serious threat and considering dire need of money in these trying times, it has been decided to process advance to fight COVID-19 pandemic on top
priority.
Claims for availing advance to fight pandemic are filed online, necessitating every EPF account to be KYC complaint as pre-cursor. EPFO has
relaxed date of birth correction criteria to ease KYC compliance enabling submission of claim to fight pandemic online. EPFO would accept the date
of birth recorded in the Aadhaar card of a subscriber as a valid proof for rectification of the date of birth in PF records. All cases with
variation in date of birth up to three years are now being accepted by EPFO.
Registration of New Public & Private Limited Companies for EPFO & ESIC now on MCA Portal
06 MAR 2020
As part of the ongoing efforts to improve India’s ranking in the Doing Business Report 2021, The Ministry of Labour & Employment has completed the reform to “Integrate process of registration for GST, EPFO, ESIC and Profession Tax for Maharashtra with company incorporation” in tandem with the MCA.
The reform has been completed by making the registration of new Public, Private Limited Companies and One Person Company for ESIC and EPFO mandatory through the Spice+ and AGILE-PRO eforms of MCA w.e.f., 15-02-2020. Registration for ESIC and EPFO for new companies as above has been stopped on Shram Suvidha Portal from 15.02.2020. A message to this effect is displayed on the Shram Suvidha Portal and the website of Ministry of Labour and Employment www.labour.gov.in as follows:
Registration for EPFO & ESIC for new Public& Private Limited Companies and One Person Company has been stopped on Shram Suvidha Portal from 15.02.2020.
With effect from 15.02.2020, new Public& Private Limited Companies and One Person Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.gov.in) through Spice + and AGILE-PRO eforms) only at the time of incorporation.
However, the above new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.
Year End Review 2019 : Ministry of Labour and Employment
More than 39 Lakhs Beneficiaries Enrolled In PM-SYM and more than 20,000 in NPS - Traders
1,52,778 establishments covering 1,21,65,587 Employees Benefitted under PMRPY
30 DEC 2019
Ministry of Labour and Employment has taken a number of initiatives for bringing transparency and accountability through
reforms and enforcement of Labour Laws, with the objective of strengthening the safety, security, health, social security
for every worker and bringing ease of compliance for running an establishment to catalyze creation of employment
opportunities. These initiatives include governance reforms through use of e-governance measures and legislative reforms by
simplifying, amalgamating and rationalizing the existing labour laws into 4 labour codes. Two mega pension schemes were
launched during the year for old age protection and social security of unorganized workers.
LEGISLATIVE INITIATIVES: LABOUR LAW REFORMS
Labour Codes: As per the recommendations of the 2nd National Commission on Labour, Ministry has taken steps for
codification of existing Central labour laws into 4 Codes by simplifying, amalgamating and rationalizing the relevant
provisions of the Central Labour laws. At present, the Ministry has been working on to simplify, amalgamate &
rationalize the provisions of the existing Central labour laws into 4 Labour Codes. (I) Labour Code on Wages: The Code on Wages, 2019 subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the
Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. It has been passed by both
Houses of the Parliament and assented to by the President on 08.08.2019. (II) Labour Code on Industrial Relations: The draft Labour Code on Industrial Relations subsumes the existing Laws
viz. The Trade Union Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; The Industrial Disputes Act, 1947.
The Code has been introduced in the Lok Sabha on 28.11.2019. (III) Labour Code on Social Security & Welfare: The draft Code on Social Security subsumes 09 Labour Acts like:
The Employees’ Compensation Act, 1923, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Unorganized
Workers’ Social Security Act, 2008 etc.
The Code has been introduced in Lok Sabha on December 11, 2019. (IV) Labour Code on Occupational Safety, Health & Working Conditions: The Occupational Safety, Health &
Working Conditions Code, 2019 subsumes the 13 Labour Acts like: The Factories Act, 1948, The Plantation Labour Act, 1951,
The Mines Act, 1952, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act,
1996 etc.
The Occupational Safety Health & Working Conditions Code, 2019 was introduced in the Lok Sabha on 23.07.2019. Presently,
the Code has been referred to the Parliamentary Standing Committee on Labour for examination.
GOVERNANCE REFORMS THROUGH TECHNOLOGY
Shram Suvidha Portal:
The Ministry of Labour & Employment has developed a unified Web Portal ‘Shram Suvidha Portal’, to bring transparency and
accountability in enforcement of labour laws and ease complexity of compliance.
Allotment of unique Labour Identification Number (LIN) to Units after registration to facilitate online inspection
& compliance was started on the Portal with its launch on 16.10.2014 itself. Unique Labour Identification Number (LIN)
has been allotted to 27,81,065 units as on 08.11.2019. Transparent Labour Inspection Scheme in Central Sphere was started on the Portal with its launch on 16.10.2014
itself. Since the launch of the Labour Inspection Scheme, 5,24,189 inspection reports across the four Central Labour
Enforcement Agencies have been uploaded on Shram Suvidha Portal.
ONLINE RETURN - Unified Online Annual Returns have been made mandatory in respect of eight (8) Central Labour Acts,
namely, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961, the Payment of Bonus
Act, 1965, the Industrial Disputes Act, 1947.the Contract Labour (Regulation and Abolition) Act, 1970, the Inter-State
Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, and the Building and Other Construction
Workers (Regulation of Employment and Condition of Service) (BOCW) Act, 1996. These Returns which were half yearly/annually
earlier, now need to be filed by all employers annually only and are to be filed online. 1,08,711 online returns have been
filed on the Shram Suvidha Portal as on 08.11.2019 Since launch of the Online Annual Return.
31,047 online returns have been filed on the Shram Suvidha Portal till November 08, 2019 under Mines Act, 1952 (Coal Mines
Regulations, Metallurgical Mines Regulations and Oil Mines Regulations).
Unified monthly Electronic Challan-cum-Return (ECR) for EPFO and ESIC has been made operational.
COMMON REGISTRATION: Common Registration form for EPFO and ESIC has been made operational. 1,27,544 units have been
registered with EPFO & 1,07,681 units have been registered with ESIC as on November 08, 2019.
Common Registration under three Central Acts namely the Building and Other Construction Workers (Regulation of Employment
and Condition of Service) Act, 1996, the Inter-State Migrant Workmen (Regulation of Employment and conditions of Service)
Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 is being provided online on Shram Suvidha Portal.
6052 registrations have been issued using this facility as on 08.11.2019.
Licenses under two Central Acts, namely, the, Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 have been made online. 20,316 licenses have
been issued using this facility as on 08.11.2019.
State Integration
Integration of States with Shram Suvidha Portal is under way. As on date, Haryana, Gujarat, Rajasthan, Uttar Pradesh, Madhya
Pradesh, Maharashtra, Punjab, Uttarakhand and Delhi are being integrated with the Portal. Data is being shared and LIN is
being allotted to the establishments covered by the state labour enforcement agencies.
Start Up India
Facility for exemption from Labour Inspections under six (6) Central Labour Acts is being provided to the Start-ups which
submit self certified declarations through Shram Suvidha Portal.
State/UT Governments have been advised to regulate the inspections for the Start-Ups, wherever applicable and extend the
self-certification compliance regime from 3 years to 5 years. 27 States/UTs have taken action on the advisory dated
12.01.2016 /06.04.2017 issued by this Ministry for self-certification and to regulate inspection under the four (4) labour
laws viz. the Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, the
Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979,the Payment of Gratuity Act, 1972
and the Contract Labour (Regulation and Abolition) Act, 1970 for the start-ups wherever applicable.
Social Security Schemes
Government of India has launched two pension schemes for old age protection and social security of Unorganised Workers in
2019.
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), a voluntary and contributory pension scheme, was launched in February,
2019 for the benefit of unorganized workers. It is central sector scheme open to unorganised workers, whose monthly income
is Rs.15000/- or below and who has an Aadhar number as well as savings bank / jan-dhan account. The minimum age for joining
the scheme is 18 years and the maximum is 40 years. Under the scheme, minimum assured monthly pension of Rs.3000/- will be
provided to the beneficiaries from the age of 60 years onwards. Enrolment to the Scheme is done through the Common Service
Centres, with its network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through
visiting the portal www.maandhan.in. Under the scheme, the subscriber is required to pay the prescribed monthly contribution
amount and the Central Government provides equal contribution. Life Insurance Corporation of India (LIC) is the Pension Fund
Manager and shall be responsible for pension pay-out. Total number of 39,00,525 beneficiaries under PM-SYM have been
enrolled as on 10.12.2019.
National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons has been launched on 12.09.2019. It is a
voluntary and contributory pension scheme. Enrolment to the Scheme is done through the Common Service Centres, with its
network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through visiting the
portal www.maandhan.in. The traders in the age group of 18-40 years with an annual turnover, not exceeding Rs.1.5 crore and
who are not a member of EPFO /ESIC/ NPS/ PM-SYM or an income tax payer, can join the scheme. Under the scheme, 50% monthly
contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government. Subscribers,
after attaining the age of 60 years, are eligible for a monthly minimum assured pension of Rs.3,000/-. Total number of
20,000 beneficiaries under NPS-Traders have been enrolled as on 10.122019. Pension Week was also celebrated in all the States/UTs w.e.f. 30th November to 06th December, 2019 in coordination
with Common Service Centres, to increase the enrolments under both the Schemes, i.e. PM-SYM and NPS-Traders. A Central level
function was inaugurated on 30.11.2019 by Minister for Labour and Employment launching the Pension Week/Pension Saptah. All
the State Governments/UT Governments were requested for popularizing and bringing more awareness about the scheme. The
progress of the Scheme is being reviewed regularly in the Ministry for taking initiatives under Mission Mode.
Major Steps Taken In EPFO
Three new apps to improve service delivery of subscribers were launched by Shri Santosh Kumar Gangwar, Minister of State
(I/C) for Labour and Employment on EPFO Foundation Day. The details of three important digital initiatives of EPFO are as
under:
Online Facility for UAN generation by worker: Now any workers can obtain Universal Account Number (UAN) directly
on EPFO website which enrolls them for PF, Pension and Life Insurance benefits and a worker need not depend on his employer
alone for UAN. This is in the direction of ease of living and ensuring universal social security.
EPS Pensioner’s PPO in DigiLocker website / Application (APP) EPFO integrates with DigiLocker of NeGD to create
depository of electronic PPOs which is accessible to individual pensioners. This is a move towards paperless system and ease
of living for pensioners.
e-Inspections: Digital interface of EPFO with employers: The E-Inspection Form would be available in user login
of employers not filing ECR which enables employer to inform either closure of business or unpaid dues with proposal for
payment. It will nudge employers for compliant behavior and prevent undue harassment of non-willful defaulters and eliminate
inspector raj.
Central Board of Trustees, EPF recommends crediting of 8.65% rate of interest on Accumulations in the EPF Member’s
Account for the year 2018-19:
In 224th meeting of the Central Board of Trustees, EPF under the chairmanship of Union Minister of State for Labour and
Employment (I/C) Shri Santosh Kumar Gangwar, the Central Board recommended crediting of 8.65 % rate of interest on the EPF
accumulations in the EPF member’s account for the year 2018-19.
New Initiatives taken in Central Board of Trustees (CBT) meeting held on 21 August 2019: 1. Amendment in Employees’ pension Scheme 1995:
In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the
proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to
the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long
pending demand of the pensioner
2. Launch of Revamped EPFIGMS 2.0 Version:
The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs
of employers by speedy and smooth resolution of grievances. Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF)
manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI
MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing
ETF manufacturers. Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between
Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%. Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from
employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to
M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in
redemption of ETFs, etc.
Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for
Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio
Managers.
Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL
bonds recommended by FIAC.
Major Steps Taken In ESIC
Rate reduction in ESI Contribution- The ESI Corporation has reduced rates of ESI Contribution being paid by employees
and employers covered under ESI Scheme from 6.5 % (Employees’ share 1.75% & Employers’ share 4.75%) to 4% (Employees’
share 0.75% & Employers’ share 3.25%) with effect from 01.07.2019. This reduction of contribution rates, will ensures
financial relief to employers and employees. However, the healthcare benefits under the ESI scheme will remain the same. The
decision will benefit 36 million workers and 1.28 million employers.
Health Passbook for ESI Beneficiaries - ESIC has introduced a Health Passbook for ESI Beneficiaries in Phased manner.
This Health Passbook serves as a user-friendly mechanism for beneficiary identification, recording of clinical finding and
consultation advice by the Insurance Medical Practitioner(s). Salient feature of Health Passbook is as under: -
Separate Passbook with Unique Health ID, QR code and photograph of Insured Persons and his/her family members.
Serves for beneficiaries identification & recording of clinical findings and consultation advice by ESI Doctors/
IMPs.
Passbook would be issued by the ESIC Branch Offices in a phased manner.
Insured Persons of ESIC from newly implemented area to get treatment under Ayushman Bharat - Pradhan Mantri Jan Arogya
Yojana (PMJAY): ESIC has decided to provide cashless medical care services to entitled Insured Persons and
Beneficiaries under Ayushman Bharat package rates in newly implemented area of 102 designated Districts through PMJAY
empanelled hospitals up to a maximum limit of Rs.5.00 lakh, beyond which individual case will be channelled to ESIC for
seeking approval for further expenditure on ESI beneficiaries. Similarly, PMJAY beneficiaries may get in-house medical
treatment services as per Ayushman Bharat approved packages from underutilized ESI Hospitals.
ESIC - Chinta Se Mukti app launched - The Corporation has also launched the ESIC “Chinta Se Mukti” app
available on the UMANG platform to facilitate stakeholders to view contribution details, eligibility for benefits, claim
status, etc. in their Mobile Handset.
Extending medical benefits to Non-IPs - The Corporation has extended its medical services to Non-Insured Persons
(General Public) in its under-utilized hospitals. Now, Non-IPs can avail medical services from underutilized ESIC Hospital,
at Alwar (Rajasthan), Bihta (Bihar), Gulbarga (Karnataka), Bareilly Varanasi, Sarojani Nagar (Lucknow) & Jajmau (Kanpur)
on a nominal charge of Rs.10/- for OPD Consultation and at 25% of CGHS package rates for IPD.
Unified Website - In order to maintain the corporate identity of ESIC and to have a repository of common information,
and also to have uniformity in design and content, a Unified Website www.esic.nic.in has been launched. All the Regional
Offices/Sub-Regional Offices, ESIC Hospitals and ESIC Medical Institutions & Hospitals have been made part of this
single unified website.
ESIC- contributing excellence in sports - ESIC had recruited 135 meritorious sports persons including Shri Pramod
Bhagat, ace para-shuttler from all across India during the year 2016. Shri Pramod Bhagat, an ESIC employee at Regional
Office, Bhubaneswar has received prestigious Arjuna Award for the current year on 29th Aug., 2019. Shri Pramod Bhagat has
many tournaments to his credit including five international titles in six tournaments he participated. He won a gold medal
in the men’s singles SL3 category at the BWF Para-Badminton World Championships in Basel. Bhagat said he is now focusing to
clinch a gold medal in the Olympics.
Strengthening of Medical Infrastructure - In order to provide in-house quality medical services in the major ESIC
Hospitals, of late, ESIC has procured state-of-the-art medical equipments viz. MRI, CT Scan etc. for ICU, Secondary &
Super Speciality care.
National Career Service Project-(NCS) - The Ministry is implementing the National Career Service (NCS) Project as a
Mission Mode Project for transformation of the National Employment Service to provide a variety of employment related
services like career counselling, vocational guidance, information on skill development courses, apprenticeship, internships
etc. The services under NCS are available online and can be accessed directly, through Career Centres, Common Service
Centres, post offices, mobile devices, cyber cafes etc. The various stakeholders on the NCS platform include job-seekers,
industries, employers, employment exchanges (career centres), training providers, educational institutions and placement
organizations.
The progress of NCS Portal is given below:
NATIONAL CAREER SERVICE
Sl. No.
Parameters
Number as on 31st October, 2019
1
Active Jobseekers Registered
1.01 crore
2
Active Employers Registered
25184
3
Total Vacancies Mobilized
58.50 lakh
With the increased focus of Government on Career Counselling, the Ministry proposes to create a network of Career
Counsellors where the Career Centres will become the hub of Career Counselling in their area. Under the process, 5645 Active
Career Counsellors from various States/UTs have got registered at NCS Portal.
The NCS Project also envisaged setting up of Model Career Centres (MCCs) to be established in collaboration with States and
other institutions to deliver employment services. Approval for 146 MCCs has been accorded (including 07 MCCs on non-funding
basis). These model centres can be replicated by the States from their own resources. The Government now, keeping in view of
the importance of the employment as a thrust area in Government Schemes, and to provide employment related services to
maximum job seekers and other stakeholders has decided to establish 100 more Model Career Centres (MCCs) thereby extending
the geographical coverage of the scheme increasing number of Government funded MCCs to 200 during 14th Finance commission
(2017-2020).
Proposals were received from different States. On the recommendations of the Appraisal Committee, Government has approved
171 (including 07 on non-funding basis) Model Career Centres. Further 37 more model career centers have been recommend by
the Inter Ministerial Appraisal Committee in the meeting held on November 20, 2019.
National Career Service Centres for Differently Abled (NCSC-DAs): 21 National Career Service Centres for Differently
Abled (NCSC-DAs) are functioning in the country under the administrative control of Directorate General of Employment, M/O
Labour & Employment. These Centres evaluate residual capacities of Persons with Disabilities, provide Vocational
Training, and extend Vocational Rehabilitation assistances etc. to Persons with Disabilities (PWDs). The Services of NCSC-
DAs are open to Persons with Disabilities irrespective of the gender and education in the category of Locomotor, Visual
& Hearing impaired, Mild Mental Retardation and Leprosy Cured.
6644 Candidates have been rehabilitated upto October 31, 2019 by NCSC-Das. National Career Service Centre Centres (NCSCs) for SC/STs; Directorate General of Employment is implementing the
scheme for “Welfare of SC/ST job seekers through Coaching, Vocational Guidance and Training and Introduction of new courses
in existing National Career Service Centre Centres (NCSCs) for SC/STs and Establishment of new NCSCs in the States not
covered so far” Under the scheme, National Career Service Centre Centres (NCSCs) for SC/STs has been set up by Govt. of
India, Ministry of Labour& Employment, DGE to enhance the employability of SC/ST job seekers through coaching/training.
So far 25 National Career Service Centre Centres for SCs/STs have been set up.
67761 candidates have been provided guidance and counselling services, 5621 students were trained in typing and shorthand
and 1050 candidates were trained in computer skills by NCSC-SC/STs upto October 31, 2019.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) - Under the scheme, Government of India is paying Employer’s full
contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) for a period of three years to the new
employees through EPFO.
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of
workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A
direct benefit is that these workers will have access to social security benefits of the organized sector. All the
beneficiaries under this scheme are Aadhaar Seeded.
152778 Establishments covering 12165587 Beneficiaries have benefitted till November 25, 2019 under Pradhan Mantri Rojgar
Protsahan Yojana (PMRPY).
BRIEF OF WORKERS EDUCATION SCHEME
The Dattopant Thengadi National Board for Workers Education & Development (renaming of CBWE), an autonomous
body under the Ministry of Labour & Employment, Government of India conducts the Workers Education
Programmes of varied nature and duration in the country through its 50 Regional and 7 Sub-Regional
Directorates spread Kashmir to Kannyakumari and Leh and laddakh for all categories without making any
distinction on the basis of male and female in Organised, Unorganised and Rural Sectors. The DTNBWED
training programmes aim at creating desired awareness among the workers in general and unorganized/ rural
workers in particular about their rights and entitlements under various welfare schemes of the Central / State
government etc.
The Board has organized 1625 training programme organized sector workers, 1120 programme conducted for unorganized and
150 for rural workers.
PIB
Year End Review 2019, Ministry of Labour and Employment, PMSYM, PMRPY, EPFO, ESIC, Pension, EPF, Employees pension Scheme,
Central Government Employees News,
Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS)
1995
Ministry of Labour & Employment
CBT Approved Proposal to Recommend Amendment in EPS 1995 225th meeting of CBT held on 21st august, 2019 at
Hyderabad
22 AUG 2019
In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the
proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to
the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long
pending demand of the pensioners.
The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing
the CBT expressed satisfaction that Employees' Provident Fund Organisation (EPFO) is settling more than 91 % claims of EPF
members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased
members and EPF call centre function 24 by 7.
He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced
OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to
reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July
2015.
The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding
eligibility of seasonal employees for pension. The contents of booklet brings out the Scheme provision that contributory
service in any year, even if contributory period is less than a year is treated as full year of eligible service for
seasonal employee and this will help dispel doubts in minds of members/employers.
The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs
of employers by speedy and smooth resolution of grievances.
The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will
be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.
In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to
attend the Debenture - Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board,
EPF.
Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers
through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then
and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF
manufacturers.
Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50
and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.
Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s
and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL
limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of
ETFs, etc.
Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal
(RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio
Managers.
Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds
recommended by FIAC.
Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC
NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better
rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat
Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of
India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board
approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.
Withholding Investments in bonds of private sector companies: The CBT approved the decision to withhold any further
investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from
CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.
The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option
in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.
Shri Raghunathan, Employees' Representative on the Central Board, EPF appreciated the efforts of the Finance Investment
& Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for
investing EPFO's corpus through a very transparent procedure. He further informed the Board that while SBI's Fund
Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in
huge savings in portfolio management fees by EPFO.
EPFO - Finance Ministry has approved 8.65% rate of interest on Employees Provident Fund
(EPF) for 2018-19
The Finance Ministry has approved 8.65% rate of interest on Employees’ Provident Fund (EPF)
for 2018-19 as decided by retirement fund body EPFO, benefitting more than 6 crore formal
sector workers.
“The Department of Financial Services (DFS), a wing of Finance Ministry, has given its concurrence
to Employees Provident Fund Organisation’s (EPFO) decision to provide 8.65% rate of interest for
2018-19 to its subscribers,” a source privy to the development told PTI.
“The DFS has approved the proposal subject to fulfilment of certain conditions related to efficient
management of the retirement fund,” the source said further.
Earlier in February, the EPFO’s apex decision making body Central Board of Trustees headed by labour
minister Santosh Gangwar had decided to raise the interest rate on EPF to 8.65% for 2018-19, which
was the first increase in the last three years.
The interest rate on EPF was hiked to 8.65% for the last fiscal from 8.55% provided in 2017-18. The
EPFO had earlier reduced the interest rate in 2016-17 to 8.65% from 8.8% in 2015-16.
After the Finance Ministry concurrence, the Income Tax Department and the Labour Ministry would
notify the rate of interest for 2018-19. Thereafter the EPFO would give directions to its over 120
field offices to credit the rate of interest into subscribers’ account and settle their claims
accordingly.
According to the EPFO estimates, there would be a surplus of Rs.151.67 crore after providing 8.65
per cent rate of interest for 2018-19 on EPF. There would have been a deficit of Rs.158 crore on
providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to
provide 8.65 per cent rate of interest for 2018-19.
The EPFO had provided a five-year low interest rate of 8.55% to its subscribers for 2017-18.
For Central Government Employees nothing announced about the demand of Rs 18000 minimum
wage
"The working class is also betrayed contrary to the claims being made by the prime
minister and the finance minister in regard to providing dignity to the workers. Nothing
announced about the demand of Rs 18000 minimum wage to workers about 45 crore of them who
were hoping against hope."
AITUC DEPLORES THE BJP LED NDA GOVT. FOR MAKING CRUEL JOKE ON THE SUFFERING
PEOPLE
Press Release
The BJP led NDA government has once again attempted to throw jumlas on the face of
suffering people of India through its vote on accounts (interim budget). The announcements
made are with forthcoming elections in mind, just throwing statistics without any basis.
On one hand side it is a cruel joke on the marginal farmers who hold land up to 2 hectares
which number about 86 % of total farmers in the country offering rupees 17 per family per
day. The rural landless poor who work in the fields and related agricultural activities
have been offered nothing.
There is nothing in the budget statement to address unemployment which has reached highest
in last 45 years. Nothing offered for job creation, no steps announced to fill up the
already sanctioned central and state government posts. Hence the youth is once again
cheated.
Those who should be covered in EPF in India should be about 10 crore workers which
actually are yet not fully registered and hence all of them not been covered for pension.
It is those registered only who are already being covered for pension that the
pronouncement in this budget to be benefiting with pension of rupees three thousand where
as demand of these workers is for pension not less than 7500. There is nothing in the
budget for about 35 crore of unorganized sector workers other than the 10 crore workers
who are covered under EPF. The working class is also betrayed contrary to the claims being
made by the prime minister and the finance minister in regard to providing dignity to the
workers. Nothing announced about the demand of Rs 18000 minimum wage to workers about 45
crore of them who were hoping against hope. The false claim of control on price rise is
another insult on the people who are finding it too difficult to run their kitchens in the
face of steep rise in the prices of every day essential items.
No tax increase on corporates or wealth tax which are very necessary to meet the present
crisis ridden economy of the country. The hollowness of the government and its
camouflaging ways were on display through this interim budget.
Ministry of Labour &
Employment 98.38 Lakh Employees benefitted
through PMRPY
07 JAN 2019
Pradhan
Mantri Rojgar Protsahan Yojana (PMRPY) was launched on 9th
August, 2016
with the objective to incentivise employers for creation of
employment.
Under the scheme, Government of India is paying Employer's full
contribution i.e. 12% towards EPF and EPS both (as admissible
from time
to time) w.e.f. 01.04.2018 for a period of three years to the
new
employees and to the existing beneficiaries for their remaining
period
of three years through EPFO. The terminal date for
registration of
beneficiary through establishment is 31st March, 2019.The scheme
is
targeted for employees earning upto Rs. 15,000 per month. This
scheme
has a dual benefit, where, on the one hand, the employer is
incentivised
for increasing the employment base of workers in the
establishment, and
on the other hand, these workers will have access to social
security
benefits of the organized sector. Number of Employees and
Establishments
benefitted as on 31.12.2018 is 98.38 lakh and 1.21 lakh
respectively.
State-wise employees, establishment benefited and amount of
subsidy
disbursed is at Annexure.
Annexure
Details from PMRPY Portal from inception till 31-Dec-
2018
<
/tr>
State
No. Of Establishment Benefited During
Period 01-Apr-2016 to 31-Dec-2018
No. Of Employees
Benefited During Period 01-Apr-2016 to 31-Dec-
2018
Subsidy Amount Disbursed During Period 01-Apr-2016
to 31-Dec-2018
ANDHRA
PRADESH
8646
780535
2422534115
ASSAM
365
8258
27780925
BIHAR
737
105355
474851209
CHANDIGARH
3612
155769
548215125
CHHATTISGARH
2473
102987
3591706
24
DELHI
5570
628772
2137927962
GOA
352
15343
42488134
GUJARAT
11763
857175
2748520825<
/td>
HARYANA
7067
823757
2633467270</
td>
HIMACHAL
PRADESH
2565
110997
340391679
JHARKHAND
1110
46635
133283018</
td>
KARNATAKA
7853
963140
3471298051
KERALA
3567
165120
892195708
MADHYA
PRADESH
4548
282474
1040402671
MAHARASHTRA
14193
1746468
547061
2241
ODISHA
2169
110975
358483871
PUNJAB
4760
161869
626154768
RAJASTHAN
7601
376834
1029095730
TAMIL
NADU
13527
1177433
3816056107
UTTAR
PRADESH
12556
689057
2528746729
UTTARAKHAND
2491
243977
64241631
9
WEST
BENGAL
3825
285416
787598144
121350
9838346
3253169122
5
This
information was given by Shri Santosh Kumar Gangwar Union
Minister of
State (I/C) for Labour and Employment in written reply to a
question in
Lok Sabha today.
Payroll Reporting in India: An Employment Perspective - Coverage and Sources of data
Employees' Provident Funds Scheme: September, 2017 to October, 2018 PROVISIONAL ESTIMATES OF SUBSCRIBERS AS PER EPFO RECORDS (IN NUMBERS)
Coverage and Sources of data
1. The Employees Provident Fund Scheme (EPF) is
a mandatory savings scheme under the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952. It is managed under the aegis of
Employees' Provident Fund Organization (EPFO). It covers every
establishment in which 20 or more persons are employed (and certain
other establishments which may be notified by the Central Government
even if they employ less than 20 persons each), subject to certain
conditions and exemptions as provided for in the Act. The pay ceiling is
Rs.15000/- per month. Persons drawing pay above Rs. 15,000 are exempted
or can be enrolled with some permission or on voluntary basis. The
number of members subscribing to this scheme gives an idea of the level
of employment in the formal sector. The data on subscribers-new members,
exited members and those subscribers that re-started their subscription
is sourced from EPFO. More details are available at
www.epfindia.gov.in.
2. The Employees State Insurance Act,
1948 is applicable to non-seasonal, manufacturing establishments (other
than a mine subject to the operation of the Mines Act, 1952 (35 of
1952), or a railway running shed) employing 10 or more workers. For
health and medical institutions, the threshold limit is 20 or more
workers. ESI Scheme for India is an integrated social security scheme
tailored to provide socio-economic protection to the workers in the
organized sector and their dependents, in contingencies, such as
Sickness, Maternity and Death or Disablement due to an employment injury
or occupational hazard. The wage ceiling is Rs.21000/- per month.
Beneficiaries are termed as Insured Persons (IP) and a new IP number can
also arise due to change in employment. Employees may cease to pay
contribution due to wage exceeding the statutory ceiling of Rs.21000/-
per month or owing to resignation, death, retirement or dismissal. The
number of subscribers of this scheme also gives an idea of the level of
employment in the formal sector. Data is sourced from Employees' State Insurance Corporation (ESIC)
and the information may have an element of duplication with EPF data
and is thus not additive. More details are available at www.esic.in.
3. The Pension Fund Regulatory and Development Authority (PRFRDA)'s National Pension scheme (NPS) is
an easily accessible, low cost, tax-efficient, flexible and portable
retirement savings account. Under the NPS, the individual contributes to
his retirement account and also his employer will co-contribute for the
social security/welfare of the individual. NPS is designed on defined
contribution basis wherein the subscriber contributes to his account,
there is no defined benefit that would be available at the time of exit
from the system and the accumulated wealth depends on the contributions
made and the income generated from investment of such wealth. Any
citizen of India, whether resident or non-resident, individuals who are
aged between 18 - 60 years as on the date of submission of his/her
application can subscribe to the scheme. From 1st January 2004, the
central and the state governments have adopted this scheme for new
employees except for armed forces. This was extended to other
establishments from 2009 onwards. More details are available at
www.pfrda.org.in.
Incentives to Industries in Jammu & Kashmir, Himachal Pradesh, Uttarakhand and North Eastern States
17 DEC 2018
Twenty-one
projects are under implementation or have been completed in the States
of Jammu & Kashmir, Himachal Pradesh, Uttarakhand and North Eastern
States including six projects in the States of Himachal Pradesh, Jammu
& Kashmir, Mizoram and Tripura.This information was given by
Minister of State for Commerce & Industry C. R. Chaudhary in a
written reply in the Lok Sabha today.
Department of Industrial
Policy and Promotion (DIPP) under the Ministry of Commerce &
Industry has been implementing many schemes for providing incentives to
industries in the States of Jammu & Kashmir, Himachal Pradesh,
Uttarakhand and North Eastern States including Sikkim.
The scheme
for Jammu & Kashmir provides Central Capital Investment Incentive at
the rate of 30% of the investment in plant & machinery with an
upper limit of Rs. 5 crore). Central Interest Incentive at the rate 3%
interest on working capital for 5 years and Central Comprehensive
Insurance Incentive (Reimbursement of 100% insurance premium for 5 years
are also available. The scheme is in force from 15.6.2017 to 31.3.2022.
The
scheme for Himachal Pradesh & Uttarakhand provides Central Capital
Investment Incentive at the 30% of the investment in plant &
machinery with an upper limit of Rs. 5 crore and Central Comprehensive
Insurance Incentive (Reimbursement of 100% insurance premium for 5
years). The scheme is in force from 1.4.2017 to 31.3.2022.
The
scheme for North Eastern states including Sikkim provides (i) Central
Capital Investment Incentive (30% of the investment in plant &
machinery with an upper limit of Rs. 5 crore), (ii) Central Interest
Incentive (3% interest on working capital for 5 years), (iii) Central
Comprehensive Insurance Incentive (Reimbursement of 100% insurance
premium for 5 years), (iv) Income Tax Reimbursement of centre's share
for 5 years, (v) GST reimbursement of Central Govt. share of CGST &
IGST for 5 years, (vi) Employment Incentive under which additional 3.67%
of the employer's contribution to EPF in addition to Govt. bearing
8.33% Employee Pension Scheme (EPS) contribution of the employer in
PMRPY and (vii) Transport incentive on finished goods movement by
Railways(20% cost of the transportation), by Inland Waterways Authority
(20% of the cost of transportation) & by air (33% of cost
transportation of air freight) from the station/port/airport nearest to
unit to the station/port/airport nearest to the destination point.
Under this scheme a single unit can avail overall benefits up to Rs. 200 crore.
Scheme
of Budgetary Support to the eligible units located in the states of
Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North Eastern
States including Sikkim under Goods and Service Tax Regime extends
benefits of GST reimbursement of central government share of
CGST&IGST to the industrial units for the residual period to them
which were earlier availing excise exemption in the pre-GST regime. The
scheme is in force from 01.07.2017 till 30.06.2027.
In addition,
under this scheme, DIPP is implementing Modified Industrial
Infrastructure Up-gradation Scheme (MIIUS) to upgrade common industrial
infrastructure in industrial parks, estates and areas in the country
including green field projects in backward areas including NER.
Creating job opportunities employment generation during last three
years.
Creating
job opportunities and facilitating generation of employment has been at
the core of our policy-making. During the last three years, we have
taken a number of steps to boost employment generation in the country.
These measures include:-
Contribution of 8.33% of Employee Provident Fund (EPF) for new employees
by the Government for three years.
Contribution
of 12% to EPF for new employees for three years by the Government in
sectors employing large number of people like textile, leather and
footwear.
Additional deduction to the employees of 30% of the wages paid for new
employees under the Income Tax Act.
Launch
of National Apprenticeship Scheme with stipend support and sharing of
the cost of basic training by the Government to give training to 50 lakh
youth by 2020.
Introducing system of fixed term employment for apparel and footwear
sector.
Increasing paid maternity leave from 12 weeks to 26 weeks, along with
provision of creches.
Aadhaar linking and interoperability of General Provident
Fund (GPF), Public Provident Fund (PPF) and Employees Provident Fund
(EPF)
No.CAIU/011(44)2016/Aadhar/10273
Date: 22 SEP 2017
To
All ACCs (Zones) including ACC (ASD),
All RPFC-I/ RPFC 11 (Regional Offices),
Sub: Aadhaar
linking and interoperability of General Provident Fund (GPF), Public
Provident Fund (PPF) and Employees Provident Fund (EPF) -regarding.
Sir,
Please find enclosed herewith a letter No.D-11011/36/2016-DBT (Cab.)
dated 29.08.2017 received from Assistant Director, Cabinet Secretariat,
DBT Mission forwarding therewith record of discussions of the meeting
held under the Chairmanship of Joint Secretary, DBT Mission on
25.08.2017, wherein it has been directed that all the Departments should
ensure 100% of Aadhaar seeding by December 31,2017.
2. It is
requested to implement the instructions issued by the Cabinet
Secretariat, DBT Mission, New Delhi for seeding of Aadhaar by December
31, 2017.
EPF members now required to submit self-declaration for advance in case of illness of members/ dependents
Press Information bureau Ministry of Labour & Employment
28-April, 2017 12:51 IST
EPF members now required to submit self-declaration for advance in case of illness of members/ dependents
EPF
members will now only be required to submit a self-declaration for the
advance in case of illness of members/ dependents. Differently abled
members will also get advance on the basis of self-declaration. A member
will no longer be required to submit any medical certificate or any
other certificate or document or proforma whatsoever to avail advances
under paragraph 68-J or under paragraph 68-N of EPF Scheme 1952.
Ministry
of Labour & Employment has amended Paragraph 68-J and Paragraph
68-N of Employees’ Provident Fund Scheme, 1952 and It will come into
force from the date of its publication in the official Gazette.
According to it, a member would only be required to submit a
self-declaration, which has already been included in the composite claim
form, to avail advance under the EPF Scheme in case of illness of
members/ dependent and also in case of differently abled members.
This
is in continuation of initiatives taken by EPFO as part of next phase
of its e-governance reforms with a view to make the services of EPFO
available to its stakeholder in an efficient and transparent manner. An
administrative order was issued on 20.02.2017 in the matter of
Introduction of Composite Claim Forms (Aadhar and Non-Aadhar ) to
replace existing Claim Forms No. 19, 10C & 31 and Forms No. 19
(UAN), 10C(UAN) & 31 (UAN). EPFO has since implemented Universal
Account Number (UAN) for its subscribers. It is now possible for
subscribers, who have seeded their UAN with Aadhar Number and Bank
account details, to submit claim forms directly to EPFO without the
attestation of employers.
Government takes steps to generate Employment
Opportunities
Government
has taken various steps for generating employment in the
country like
encouraging private sector of economy, fast tracking various
projects
involving substantial investment and increasing public
expenditure on
schemes like Prime Minister’s Employment Generation Programme
(PMEGP)
run by Ministry of Micro, Small & Medium Enterprises,
Mahatma Gandhi
National Rural Employment Guarantee Scheme (MGNREGA), Pt.
Deen Dayal
Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) run by Ministry
of Rural
Development and National Urban Livelihoods Mission (NULM) run
by
Ministry of Housing & Urban Poverty Alleviation.
In order to
improve the employability of youth, around 20 Ministries run
skill
development schemes across 70 sectors. According to the data
compiled by
Ministry of Skill Development and Entrepreneurship, the
number of
persons skilled across various sectors during 2015-16 were
1.04 crore.
Government
has implemented the National Career Service (NCS) Project
comprises a
digital portal which provides a nation-wide online platform
for
jobseekers and employers for job matching in a dynamic,
efficient and
responsive manner and has a repository of career content.
A new
Scheme Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) has been
initiated
by the Ministry of Labour and Employment in the year 2016-17
for
incentivising industry for promoting employment generation
with the
allocation of Rs. 1000 crore. Under this scheme employers
would be
provided an incentive to enhance employment where the
Government will
pay the employer’s contribution of 8.33% EPS for new
employees. In
textiles (apparel and made-ups) sector, the Government will
also pay the
3.67% EPF contribution of employers in addition to paying the
8.33% EPS
contribution. Government announced a booster package of Rs.
6000 crores
for the textile sector which is an employment intensive
sector.
This
information was given by Shri Bandaru Dattatreya, the
Minister of State
(IC) for Labour and Employment, in written reply to a
question in Rajya
Sabha today.
EPFO takes various steps for speedy settlement of
claims
The
Employees Provident FundsOrganization (EPFO) has taken
various steps
for speedy settlement of claims which inter alia include:
Composite
Claim Form (Aadhaar) and Composite Claim Form (Non-Aadhaar)
has been
introduced by replacing the erstwhile Claim Forms No. 19, 10C
and 31,
with a view to simplify the submission of claims by the
subscribers. The
Composite Claim Form has been further simplified to include
self-certification by EPF subscribers. The Composite Claim
Form
(Aadhaar) can be submitted to the EPFO without attestation of
their
employers.
EPFO has mandated to settle claims within 20 days.
Online Transfer Claim Portal (OTCP) has been introduced to
facilitate seamless transfer of claims.
An
online payment facility has been developed for employers for
payment of
dues. The internet banking (INB) facility enhances efficiency
and
payment and ensures anytime, anywhere online access while
usage of
existing internet bank account to make payments online.
National Electronic Fund Transfer (NEFT) has been
introduced for payments.
The
Employees Provident Funds & Miscellaneous Provisions (EPF
& MP)
Act, 1952 is applicable to every establishment employing 20
or more
persons which is either a factory engaged in any industry
specified in
Schedule-I of the Act or an establishment to which the Act has
been made
applicable by the Central Government by notification in the
Official
Gazette.
There was a total of 17.14 crore Employees
Provident
Fund (EPF) accounts as on 31.03.2016. 12.21 lakh accounts were
pending
for updation. As per consolidated Annual Accounts of EPFO for
the year
2015-16, the closing balance in Interest Account as on 31st
March, 2016
is Rs. 45,135.25 crore.
This information was given by Shri
BandaruDattatreya, the Minister of State (IC) for Labour and
Employment,in written reply to a question in Lok Sabha.
EPF Members to Withdraw upto 90 % Fund for Purchase of House
Government to Amend EPF Scheme, 1952 to Enable EPF Members to Withdraw upto 90 Percent Fund for Purchase of House
The Government has taken a decision for modification in the Employees’ Provident Funds (EPF) Scheme, 1952 to add a new paragraph 68 BD under which a member of Employees’ Provident Fund (EPF), being a member of a co-operative society or a housing society having at least 10 members of EPF, can withdraw upto 90 per cent from the Fund for purchase of dwelling house/flat or construction of dwelling house/acquisition of site. Monthly installments for repayments of any outstanding payments or interest may also be paid from the amount standing to the credit of the member, to the Government/housing agency/primary lending agency or banks concerned.
The total number of Employees’ Provident Fund (EPF) member accounts as on 31.03.2016, as per Annual Report for 2015-16, is 17.14 crore. On an average, contributions have been received in respect of 3.76 crore members during the year 2015-16. The withdrawal facility from the Provident Fund (PF) account under the Scheme will be available to only those PF members who fulfill the conditions prescribed.
This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha.
Last date of submission of Digital Life Certificate through Jeevan Pramaan Patra extended upto 31st March 2017
EPF & MP Act, 1952 made applicable to all staff employed in ECHS on contractual basis
A single page composite claim form in death cases replaces Form 20, form 5-IF and Form 10-D
Noticing
that many pensioners are yet to submit Aadhaar authenticated Jeevan
Pramaan as life certificate for continuation of drawal of pension, the
EPFO has further extended the last date of submission of Digital Life
Certificate through Jeevan Pramaan Patra upto 31st March 2017. Earlier
the last date was 28th February 2017.
Members and pensioners of
the Employees Pension Scheme, 1995 are required to furnish Aadhaar
number by 31st March 2017. In case a member has not been allotted
Aadhaar Number, a copy of Aadhaar Enrolment ID slip is required to be
attached for settlement of claim under EPS, 1995, namely for pension
processing and monthly pension payments. Aadhaar number however is not
required in case a member of pension scheme having less than 10 years of
service chooses to withdraw by making an application in Form 10-C.
An
Employee Enrolment Campaign-2017, started by EPFO on January 1st 2017
to cover left out workers, continues upto 31st March 2017. Under the
scheme:
The employee's share of contributions if not deducted by the employer is waived.
Nominal
damages to be paid by the employer, in respect of the employees for
whom declaration has been made under this campaign, is at the rate of
Rupee One per annum.
Administrative charges have been waived.
Even
though the EPF & MP Act, 1952 does not differentiate between
casual, contractual and regular employees, it was noted that a large
number of contractual employees hired by principal employer including
those by the government departments, PSU and autonomous Organizations
have remained out of coverage under EPFO. It is the duty of the
principal employer to ensure compliance of their outsourced / regular /
contract / casual / daily wager to the schemes under EPF Act.
To
ensure coverage of workers, principal employers have been advised to
ensure that their contractors are registered with EPFO before award of
any contract or making any payments. EPFO provides relevant information
in this regard to principal employers online.
A health care scheme
called ECHS was formulated by Ministry of Defence for its
ex-servicemen. The contractual workers of ECHS till now were deprived of
the social security benefits under EPFO. The ECHS now has been brought
under the ambit of the EPF Act. Ministry of Defence has issued necessary
directions to the ECHS for enrolling their contractual staff.
Similarly, all eligible workers engaged by contractors working with
Military Engineering Services (MES) and Indian Railways have also being
requested to ensure coverage of contractual employees under EPFO.
Towards
continuous strive to bring increased conveniences and efficiency, a
single page Composite Claim Form (Aadhar) replaces Forms No. 19 (UAN),
10C (UAN) & 31(UAN) for subscribers seeding their Aadhar number with
UAN. This can be submitted without the attestation of employers. For
subscribers who are yet to seed Aadhaar and Bank details with their UAN,
a new Composite Claim Form (Non-Aadhar) replaces the existing Forms No.
19, 10C & 31.
In addition, a Composite Claim Form in death
cases replaces the existing Forms No, 20, 5-IF and 10-D. The claimants
can apply for claim of Provident Fund, Insurance Fund and monthly
pension through this single page composite claim form in case of death
of a member.
EPFO: Here are 4 points govt is working on the retirement scheme to make it more subscriber friendly
After
last year's fiasco over taxing of provident fund, the government seems
to be working overtime to make changes to the retirement scheme. The
government has introduced a slew of measures to make the Employee
provident Fund Organsiation or EPFO more subscriber-friendly, while it
is reportedly proposing more steps.
Here are the steps the government has taken or has proposed to take and what they mean to you:
1)
The EPFO recently simplified the norms for provident fund claims by
coming out with a single one-page form for all types of claims. This
means you won't need to fill forms like Form 19, Form 10C, and Form 31
anymore to make the claims. These forms were being accepted for PF Final
Settlement, EPS Pension withdrawal and PF Partial withdrawal
respectively in the past.
The new form called the new Composite
Claim Form (CFF) are of two types called CCF (Aadhaar) and CCF (non
aadhaar). Even the process has now been made simple where the form can
be submitted to EPFO which bypasses the employer completely if you are
Aadhaar complaint and the account is seeded with your bank details. Here
you will need to fill the CCF (AAdhaar) form and for those who are not
Aadhaar compliant, they will have to fill the CCF (non aadhaar), and
include the employer in the process.
Even taking advances from
your PF corpus has been made easy, as going forward you don't need to
provide any kind of document as proof. The recent order by the
government says, "submission aadhar compliant and non-Aadhar compliant
form duly signed by the EPF subscriber shall be construed as
'self-certification for the above partial withdrawals for which no
documents would be required to be submitted to the EPFO offices." In
short, less amount of paper work for employees as well as faster
resolution of claims will be set in place.
2) By May this year
EPFO is planning to launch an online facility which will simplify the
claim process, EPFO Central Provident Fund Commissioner VP Joy told
recently. Under the proposed scheme, the claims are expected to be
settled within 20 days of submitting the form. It usually take 4-5
months for the process to get done and money to credit into your bank
account. The institution is working to make the entire process
computerised.
3) In another move the government is considering
decreasing the employers liability towards Employees Provident Fund
(EPF) in the construction sector to 10 percent of the basic pay as
against the current 12 percent, as reported by The Financial Express.
Reducing the amount of employer’s contribution, will possibly nudge more
building/construction units to extend the EPF benefits to workers. Last
year, the Delhi High Court had passed an order stating that all
construction workers need to be mandatorily enrolled under the EPF
scheme. The Hindu Business Line had reported, "Builders had expressed
concerns over "ambiguity" in the eligibility of workers, many of whom
were employed on a casual or short-term basis." And enrollment of
construction workers in PF was below expectations.
4) EPFO is
expected to launch a special housing scheme this month, which will make
life of crores of members easier if they have or plan to avail a home
loan. This scheme will enable members to make down payments or pay EMIs
from their EPF account to buy houses.
According to PTI, the
subscribers as well as their employers would be required to form a group
housing society which would further tie up with banks and builders or
sellers of homes so that EPFO members can buy homes. The scheme is
likely to be launched anytime after 8 March.
Explainer: The granular details are yet to be out, only time will tell if this scheme is good.
Do keep tracking this space as we bring you more information when the scheme is launched.
The move will help 1.2 crore people who will now be eligible for health care benefits.
The
Centre's move to increase the wage ceiling for employee coverage under
the Employees' Provident Funds and Miscellaneous Provisions Act, 1952,
to Rs 25,000 per month from the existing Rs 15,000 per month limit is
expected to benefit a larger working population and include
approximately 30 lakh more workers to the Employees State Insurance
(ESI) pool.
The move would also benefit 1.2 crore more people who
will now be eligible for health care benefits at more than 1,500 clinics
and hospitals run by the ESIC directly or indirectly. Earlier as of
March 31, 2016, there were around 2.1 crore persons who were insured
under the ESI Act and a total of over 6 crore beneficiaries. Employees
and employers contribute to the Employees’ State Insurance Corporation
at the specified rates, which are currently, 1.75 per cent of the wages
(employee’s contribution) and 4.75 per cent of the wages (employer’s
contribution) paid/payable in respect of the employees in every wage
period.
However, the increased wage ceiling is expected to pose a
challenge to employers in terms of the wage costs to be borne by them,
said Nishith Desai Associates, legal and tax councillors.
Employers,
it noted, would now be required to make provisions of cash benefit and
health insurance for an extended employee population who draw wages up
to Rs 21,000 per month. It also sees this as a challenge for the
government to ensure that the quality of medical facilities (including
hospital infrastructure) provided under the ESI Act are improved such
that the desired benefit is achieved. It is a positive move with the
objective of expanding the ambit of social security schemes to a larger
working population.
After 7th Pay Commission salary hikes, move on to raise minimum wage ceiling under
EPF
The
minimum wage ceiling under the Employees' Provident Fund (EPF) could
soon be raised to Rs 25,000 from the existing Rs 15,000.
A hike in
the wage limit as proposed would mean all employees drawing basic
salary Rs 25,000 would have to compulsorily contribute to the provident
fund.
The minimum wage ceiling under the Employees' Provident Fund
(EPF) could soon be raised to Rs 25,000 from the existing Rs 15,000. A
proposal to to enhance the limit is likely to be sent by the Employees'
Provident Fund Organisation (EPFO) to the government. A decision to
propose the change has been taken at a recent meeting of Sub-committee
of the Central Board of Trustees, EPFO, on contract workers held on
November 7. Central Board of Trustees (CBT) is the highest
decision-making body of the EPFO.
A hike in the wage limit as
proposed would mean all employees drawing basic salary Rs 25,000 would
have to compulsorily contribute to the provident fund. However, those
drawing above that limit will have the option to become member of the
provident fund, and can opt out if they want to.
The move comes in
wake of changes in the wage structure in accordance with the proposal
of the 7th Pay Commission. Trade union representatives at the CBT
sub-committee meeting pointed out that the minimum wage of Central
government employees after implementation of the Pay Commission report
has been hiked to Rs 18,000. and hence the EPFO's wage ceiling of Rs
15,000 needs to be altered. They pointed out that there could be further
increase in minimum wages from the Rs 18,000 is likely with the trade
unions demanding a minimum wage of at least Rs 21,000 to Rs 22000.
In
fact, the Employees' Deposit Linked Insurance Scheme (EDLI) is directly
linked to the minimum wage ceiling. At present, If an employee is
earning up to Rs 15,000 he or she can avail of benefits under the
Employees Deposit Linked Insurance Scheme (EDLI). The scheme provides
life insurance of up to Rs 6 lakhs.
Press Information Bureau
Government of India
Ministry of Labour &
Employment
19-December-2016 16:54 IST
Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees
(EPF)
CBT recommends 8.65% interest on EPF to its subscribers for the year 2016-
17
The
Minister of State for Labour and Employment (Independent Charge) Shri
Bandaru Dattatreya chaired the 215th meeting of the Central Board of
Trustees (EPF) in Bengaluru today.
Following are the key decisions of the Board.
1.
The Board adopted the 63rd Annual Report on the work and activities of
the EPFO for the year 2015-16 for placing it before the Parliament.
2.
Paragraph 60(1) of Employees’ Provident Funds Scheme 1952, requires
EPFO to credit to the account of each member interest at such rate as
determined by the Central Government in consultation with the Central
Board. The interest is credited to the members account on monthly
running balances basis with effect from the last day in each year.
Interest rates are dependent on return on investments done following the
pattern of investment prescribed by the Central Government from time to
time under Para 52 of the Scheme.
To recommend the rate of
interest for the year 2016-17, the status of estimated amount to the
credit of the members as on 01.04.2016, budget estimates (BE) of the
Contributions and Withdrawals during 2016-17 and the estimated income
from the investment holdings are taken into consideration. Interest
income from Provident Fund investments for the year 2016-17 has been
estimated mainly on the basis of interest income received/receivable in
the financial year 2016-17 including surplus from previous year of Rs
410 crore. It may be noted that the last year income included a surplus
from previous year of Rs 1604 crore.
Taking into account relevant
factors, the Central Board decided to recommend 8.65% interest to its
subscribers for the year 2016-17. Roughly 17 crore subscribers’ accounts
will be updated with this interest rate upon acceptance by the
Government.
3. Enrolment and Establishment coverage campaign 2017
This special campaign will be run in the following manner:
For
effective monitoring and implementation the Zonal Addl. CPFCs shall
lead the campaign. District Offices of EPFO will be activated and
sufficient number of officers will be exclusively engaged.
Meetings with
the stakeholders namely Employer & Employee associations and State
Governments will be held to make it a success. During the campaign wide
publicity of PMRPY and PMPRPY benefits will also be undertaken. Online
enrollment facilities to workers will form a key feature of the
campaign.
Window will be provided from 01.01.2017 till 31.03.2017.
Following recommendation will be made for approval of the Government.
i.
A nominal rate of levy of damages from the establishment for payment of
contribution for the past period during the campaign for enrolment will
be Rs one (Rs.1) per annum.
ii. Any employer during the campaign
period, may send declaration for membership of the employees who were
required or entitled to become members of the fund on or after the 1st
day of April, 2009 but before the 1st day of January, 2017 who could not
be enrolled for any reason.
iii. For the declaration made under
this campaign, the employer shall be responsible to remit the
contributions and interest payable in accordance with the provisions of
the Act and the Schemes read with special provisions notified by the
Central Government for enrolment campaign.
iv. No administrative
charges will be leviable for the past period in respect of the employees
enrolled during the campaign. The necessary amendments will be carried
out under the relevant provisions of EPF & EDLI Scheme
v. The
interest of workers enrolled under the campaign will be fully protected
and they shall be eligible to get all eligible interest and benefits as
laid down in the Schemes.
vi. To have uniform and nominal rate of
levy of damages from the establishment for payment of contribution for
the past period during the campaign for enrolment shall be fixed at Rs
one (Rs.1) per annum. Enabling provision shall be inserted under para
32(a) of the EPF Scheme 1952 and under para (5) of Employees Pension
Scheme, 1995 and para 8-A of EDLI Scheme, 1976.
This
campaign will be suitably staffed and resourced so that employers who
come forth to extend social security to their employees receive all
possible assistance from EPFO. The action will meet the twin objectives
of increasing the enrolment, extending social security benefits to all
workers and reducing litigation.
4. The Board approved a set of
guidelines for streamlining process of surrender of exemption granted to
establishments. Surrender of exemption is a situation where an
establishment requests to discontinue the exemption granted to it. As
the Act and Scheme is silent regarding the procedure of surrender of
exemption by an establishment, the decision assumes importance in
helping ease of doing business.
5. The Supreme Court in SLP
no.33032-33033 in the matter of R. C. Gupta & others has passed
certain orders of credit of amounts in the EPF accounts to the previous
accounts of employees in respect of wages more than the statutory wage
limit. The orders are to the effect that if amounts exceeding statutory
wage ceiling have been credited to EPFO, the classification thereon
shall be at the joint option of employers and employees. In accordance,
the Central Board approved a proposal for facilitating compliance. The
8.33% of the employer’s contribution proportionate to the salary of
employees in excess of Rs.6500/- shall now be credited to the pension
scheme along with the interest accrued in the provident fund account The
employees however shall be required submit joint application along with
their employer wherever the same has not been done. This will be
applicable only in those case where the members/pensioners have
contributed on higher wages than the statutory wage ceiling of Rs.6500/-
with or without exercise of option prior to the issue of notification
for increase of wage ceiling to Rs.15000/- effective from 01.09.2014.
6.
The administration cost of the Employees’ Provident Fund (EPF) and
Employees’ Deposit Linked Insurance Scheme (EDLI), 1976, is met from the
administrative and inspection charges collected from the employers of
un-exempted and exempted establishments. No charges however are levied
to run Employees’ Pension Scheme (EPS), 1995.
The Central
Government in consultation with the Central Board of Trustees, EPF fixes
the administrative charges from time to time. The administrative
charges were last reduced from 1.10% to 0.85% with effect from 1st
January, 2015.Considering the need to promote the “Ease of Doing
Business in India” and to make Indian business more competitive, and in
response to the financial efficiency gained by EPFO, the Central Board
decided to recommend further reduction of administrative charges to 0.65
%. It also recommended to abolish administrative charges levied in
implementing the EDLI Scheme, 1976 passing on the benefits of efficiency
and computerisation to employers. The Central Board also decided to
constitute a sub-committee of CBT with members drawn from employees and
employer representatives to make a pragmatic study of employment trends
for next 10 years and recommend appropriate administrative charges to
the Central Board.
7. The Chairman, CBT and the Minister of State
for Labour and Employment (Independent charge) announced that
Organisational Restructuring has been approved by the Union Government
for implementation. This includes Cadre Restructuring which will ensure
career progression of 20,000 staff/officers of EPFO. The Minister
announced that this will be implemented as a New Year gift.
