Provident Fund

Tips and General guideline for payment of Annual Bonus to the employees

On 10:38 PM

Tips and General guideline for payment of Annual Bonus to the employees.
1) Bonus has no concern with blue or white-collar categories of employees.
2) Any person whose wages/salary is below 21000 (basic & DA) is eligible for bonus.
3) Any employee who work more than 30 days in a previous financial year is entitled for bonus.
4) The bonus is payable on Rs.7000 or minimum wages of that financial year, whichever is higher.
5) The percentage of bonus shall be decided based on allocable surplus in the balance sheet of the related financial year.
6) The set-on/set-off has to be done for the calculation of allocable surplus, which is done by the CA of the company.
7) As per payment of bonus act the last date of disbursement of bonus is 30th of November of every year.
8) Annual return is to submitted to the labour department in “Form D” before 30th December of every year.
9) The payment of bonus to the contract labour shall be paid by the contractor as above but as per his own outcome of balance sheet.

How to change Mobile Number / Password linked to UAN

On 4:52 AM

How to change Mobile Number / Password linked to UAN

Following are the steps to change Mobile Number / Password linked to UAN :
Step 1 : After opening the Employees PF portal (link), click on forgot password.

Step 2 : Enter your UAN and the Captcha as required by website

Step 3 : If you just want to reset your password, click YES. But if you wish to change Mobile number click on NO.

Step 4 : On clicking NO, it will ask you details like Name, DOB, Gender and click on verify.

Step 5 : Now it will ask to enter Aadhaar or PAN number to verify your name.

Step 6 : When the details are validated, you will be asked to enter your new mobile number and click on Get OTP to reset your password and change mobile number linked to UAN.

Aatmanirbhar Bharat Abhiyan 3.0 - EPF Scheme incentives benefits for Employers and Employees

On 2:30 AM

Aatmanirbhar Bharat Abhiyan 3.0

EPF Scheme incentives benefits for Employers and Employees by the Government

New Incentives for Businesses covered in PF (Provident Fund) to boost Employment

If an establishment has less than 1000 employees, 24% PF (12% Employees share and 12% Employers share) shall be paid by the Government for their new employees employed on or after 01.10.2020.

This benefit shall be for a period of two years from the date of employment

If employees are more than 1000, then only 12% Employees share shall be paid by the Government. Employer continues to pay their 12% share.

Conditions:
• Scheme is for employees with monthly wages less than Rs.15,000/-
• If establishment has less than 50 employees, minimum 2 new employees be added.
• If you have more than 50 employees, you should employ minimum 5 or more new.
• New means, First time PF Registration, on or after 01.10.2020
• Also, if any old employee lost or left job between 01.03.2020 to 30.09.2020, then on re-employment after 1.10.20 he shall get the benefit.
• Businesses which are not yet covered in PF but do so now shall get the benefit for ALL their employees.
• Scheme open till 30.06.2021

Benefits:
• This is huge incentive by the Government to encourage businesses to add new employees and also to establishments not yet registered with EPFO to do so.
• Example, if an employee is at 14,999/- then Rs.1800/- (12% employee share) and Rs.1800/- (12% employer share), total Rs.3600/- per month shall be paid by the Government for 2 years
• Total of 3600X24= Rs.86,400.
• Both Employer and Employee get benefit of upto Rs.43,200/- each year in 2 years.
• It means PF shall not be deducted from new eligible employees.
• Ironically, it means that New eligible employees get Rs.1800/- per month more than existing old employees presently drawing less than Rs.15,000/- wages per month, for 2 years.
• It also means that Employees who left on or after 01.03.2020 and rejoin after 01.10.2020 shall get this incentive of upto Rs.1800/- pm but if any loyal employee stayed back and continued to work or joined before 01.10.2020 shall not be eligible for this benefit.
• nonetheless It is a grand incentive for new businesses that employ 20 or more employees on or before 30th June 2021.
• It’s also a grand incentive for existing businesses not yet covered in PF (employees less than 20) or those who have avoided or evaded PF registration. Till now enforcement department of PF would not only recover old PF dues, they would also recover interest and penalty. But now, there’s this huge incentive for such units to get voluntarily covered in PF.
Example:
Suppose one is able to adds 20 employees, it will mean benefit of upto Rs.43,200 X 20 X 2= Rs.17,28,000/- in 2 years.

And for new employees that one adds till 30.06.2021, each employee shall get additional benefit of Rs.43,200/- per year.

The employees can also get benefit of 24% of basic wages upto Rs.3600/- per month as this amount shall be deposited in their PF account by the Government for 2 years.

Maternity Benefit available for ESIC Covered Employees

On 3:26 AM

Maternity Benefit available for ESIC Covered Employees

Did you know that if an employee is a regularly contributing ESIC Member, she can avail the entire maternity benefit payment from the ESI Corporation. In other words, an employer need not bear the maternity benefit burden in case an employee is covered under ESIC and has contributed for at least 70 days in the immediately preceding one or two contribution periods.

Quantum of Benefit Amount

Around 26 weeks of wages (six months salary) is payable to an eligible employee by the ESIC under this provision. The employer is not liable to pay any amount towards the maternity benefit to such employee.

Documentation and Procedure

Step 1 : Check Eligibility - An employee can check the ESIC benefits eligibility at the link given below. Please note that the link can be opened from Mozilla Firefox.
http://www.esic.in/EmployeePortal/login.aspx

Here, User Id is Employees IP No

Step 2 : ESIC Branch Office - Once the employee is eligible for the benefit, she has to approach nearest ESIC Branch office for completing the paperwork. The list of Branch offices is given below(Mozilla Firefox only).
https://www.esic.nic.in/branchs

Step 3 : Document Submission and Follow up
Once the branch office is traced, the employee is expected to submit the following set of documents.

To avail the benefits, employee will have to submit a claim form and Form L in person to the ESIC office along with the other docs mentioned in the list. On Production of birth certificate ESIC office will share necessary forms (Form 10 and Form L) for availing the benefit.

Documents Required:

1) MB certificates with Doctor's sign and stamp
2) MB final certificate after delivery (within one month)
3) IW's(Insured Women) bank details with A/C No. and MICR No. (with changed name after marriage) Cancelled cheque
4) Xerox copy of ESIC card
5) Baby's original birth certificate from corporation
6) Hospital discharge summary Xerox
7) Insured woman(IW) name should be the same on all documents
8) Xerox copy Aadhar
9) Claim form (Issued By Branch Office and to be submitted after delivery in person)
10) Form 10 (Issued By Branch Office, filled by employer and to be submitted)
11) L1 (Issued By Branch Office and to be submitted after delivery in person)

Process of PF Withdrawal - Outbreak of Pandemic (COVID-19)

On 3:34 AM

Process of PF Withdrawal - Outbreak of Pandemic (COVID-19)

As per the announcement by Indian Finance Minister Mrs. Nirmala Sitharaman, up to 75 percent of PF money can be withdrawn by EPF (Employee Provident Fund) subscribers or three months of Wages from their total PF amount accumulated till date, whichever is lower, to help them in their financial emergency caused by the lockdown due to the coronavirus pandemic.

PF withdrawal requests can be submitted online by Provident Fund Members.

Here are the Instructions and conditions to withdraw your PF money online

Eligibility to file online claim for the purpose “Outbreak of pandemic (COVID-19)”
1. UAN should be activated.
2. Verified Aadhaar should be linked with UAN
3. Bank Account with IFSC code should be seeded with UAN

Eligible Amount allowed to be withdrawn from your PF account
1. Upto 75% of PF balance (View PF Passbook for EPF balance) or
2. Three months of PF wages or
3. The claimed amount by the member
whichever is the least of 1 or 2 or 3.

How to file online advance claim for the purpose “Outbreak of pandemic (COVID-19)”

1. Login to Member Interface of Unified Portal
(https://unifiedportal-mem.epfindia.gov.in/memberinterface)

2. Go to Online Services >> Claim(Form-31,19,10C & 10D)

3a. Enter last 4 digits of your Bank Account and click on verify

3b. Agree to the Certificate of Undertaking

3c. If the Bank account last 4 digits number you entered matched with the PF records, you will see a verified green tick.

4. Click on “Proceed For Online Claim”

5. Select PF Advance (Form 31) from the drop down

6. Select purpose as “Outbreak of pandemic (COVID-19)” from the drop down

Purpose of PF withdrawal - Coronavirus pandemic covid-19

7. Enter amount required and Upload scanned copy of cheque and enter your address

8. Accept to apply with Aadhaar and Click on “Get Aadhaar OTP”

9. Enter the OTP received on Aadhaar linked mobile number.

10. Claim is submitted and you can now view the Claim submitted form and also the status of the claim.

Update PF Date of Exit / Date of Leaving in Provident Fund (PF) Employee member portal

On 3:10 AM

Update PF Date of Exit / Date of Leaving in Provident Fund (PF) Employee member portal

Sometimes employer does not update the Date of leaving / Date of Exit of the member. In such cases, Employee / Member is not able to withdraw EPF or file transfer claim or final settlement claim. To overcome this problem a provision has been provided in the member login so that the member himself can update his date of Exit or Date of leaving. Member can update his/her date of Exit / Date of leaving only after two months of his/her last contribution received from the Employer / establishment. Date of exit should be within the last wage month for which contribution was received. This functionality has been deployed at Member Portal.
Following are the steps to use this functionality:

Manage>>Member Exit
(URL: https://unifiedportal-mem.epfindia.gov.in/memberinterface/)
> Please enter the User ID(UAN) and Password for login.

> Select the option “Member Exit” (Manage>>Member Exit)
> Select the PF Account number from the field “Select Employment”.

> Enter the Date of Exit in the field “Select Date of Exit (EPF) and “Re-select Date of Exit (EPF).
> Select the reason of exit from the field “Select reason of Exit”.
> Click on option “Request OTP”. OTP will be received on Aadhaar linked Mobile Number.
> Enter the OTP in the field “Enter aadhaar based OTP”.
> Select the checkbox by clicking and submit.

> Click on “Update” button in “Alert”.

> Click on “OK” button in “Alert”.

> Date of Exit updated successfully. See the “Date of Exit seeding history”.

Share with your family and friends and help them to solve their EPF date of exit problems !

Rate of contribution under the ESI Act reduced from 6.5% to 4%

On 11:03 PM

Update : Government of India: Rate of contribution under the ESI Act has been reduced from 6.5% to 4% (employers’ contribution reduced from 4.75% to 3.25% & employees’ contribution reduced from 1.75% to 0.75%). Reduced rates will be effective from 1st July 2019.

Click here to download the Gazette copy.

ESIC today issued a Press note stating that the government has approved the reduced the rate of contribution.

However this reduced rate of contribution is to be notified through a final notification in the gazette. Only then it attains legal force and can be implemented.

Some media reports say that the reduced rate of contribution will be effective from 1st July 2019. But until the gazette notification is published in black and white, it should not be taken into consideration for implementation.

Hence let us wait for the publication of the gazette notification before taking a call on its implementation.