Employees’ Provident Fund (EPF): Interest Rate, Recommendation on Loyalty Bonus and Insurance Benefit Under ELDI

Friday, April 14th, 2017 Amritesh no responses

The EPFO has clarified that Subscribers to EPF Fund will receive an interest of 8.65% on the contribution for the Financial Year 2016-17. The clarification comes after reports suggested that Finance Ministry was looking to reduce the rate to 8.20% for the financial year as the rates for small savings scheme were slashed by 0.10% earlier in the month. Employees Provident Fund: All You Need To Know The Central Board of Trustees (CBT), apex decision making body of EPFO has also recommended following reforms for the benefit of the subscribers to the fund. The recommendations require the approval of the Government to be implemented. Initially, the benefits will be applicable for 2 years and will be reviewed on expiry of…

Maternity Benefit Act (Amendments) 2017

Thursday, March 30th, 2017 Amritesh 14 responses

The Maternity Benefit Act is aimed at regulating employment of women employees in certain establishments for periods before and after child birth to provide maternity as well as certain other benefits. Additional benefits may also be extended as per the provision of the State Act or as per the company policies. The Act is in place to protect the rights of the female employees and ensure that employers do not violate the benefits applicable to them. Establishment needs to ensure that the provisions of the Act is strictly adhered to and any violation will attract legal prosecution. The Objective of the Maternity Benefit Act is to ensure that the well being of the mother and the child is not compromised…

Employees’ Provident Fund Scheme: Composite Claim Forms For Fund Withdrawal (CCF)

Friday, March 3rd, 2017 Amritesh 3 responses

The Employees’ Provident Fund Organization (EPFO) has been introducing changes to simplify the withdrawal process for the Subscribers to the Employees’ Provident Fund (EPF). Recently, the EPFO has introduced a single page Composite Claim Form (CCF) which would ensure hassle free claim processing for the subscribers whose Aadhar Number and Bank details have been seeded with the Universal Account Number (UAN). The EPFO has taken measures to smoothen the claim process, the changes pertaining to the same has been discussed below. CCF (Non Aadhar) has also been issued for Subscribers yet to seed their account with UAN. EPFO in its pursuit to make the service more transparent and efficient as part of their e-governance drive has introduced multiple reforms including…

Amendments In Payment Of Gratuity Act: Proposed

Sunday, February 26th, 2017 Amritesh 25 responses

Gratuity Payment Act is expected to be amended soon. In the recently concluded tripartite meeting it has been decided that the Tax Free Gratuity limit to be enhanced to Rs 20 lakhs from Rs 10 lakhs to bring it at par with the Government employees who enjoy similar benefits as per the recommendations of the 7th Pay Commission. Official Notification on the same is expected soon. Few more amendments in Payment of Gratuity Act has been proposed. The recommendation to increase the Tax Free Gratuity to Rs 20 lakhs has been agreed upon by the Labour Ministry and the Central Unions. The move will benefit Individuals employed in the private sectors. Along with it, host of other reforms were also…

Minimum Wages Act,1948

Saturday, December 31st, 2016 Amritesh one response

  Minimum Wages Act envisages to fix minimum standard wage in scheduled employments thereby protecting the interest of the wage earners. The Act aims to eradicate the exploitation of labour at the hands of the respective employers. The Act also provides provision for maximum daily working hours, periodic rest day and also overtime wages. It lays out provision to protect the interest of the employees and provide them with minimum wage deemed ideal to sustain themselves and their dependents.   Coverage and Applicability Minimum Wages Act extends to whole of India and is applicable to all the establishments employing one or more Individuals included under the Scheduled Employment list. Every Employee working in any scheduled employment is covered under the…

Amendments to Employees State Insurance Corporation (ESIC), 2016

Friday, December 30th, 2016 Amritesh no responses

  Employees State Insurance Corporation (ESI) has witnessed quite a few amendments in the last few months which are aimed at improving the healthcare benefits extended to the employees covered under the Act. The latest amendments to ESI are aimed at bringing more individuals under the scheme which would also include their dependents under the fold. The social security schemes are aimed at improving the standard of living and provide better healthcare facility to the Individuals. Amendment also tries to expand the coverage in terms of reach so that more and more Individuals across the nation are included under the scheme.   Employee State Insurance (ESI) Salient Features And Benefits Under Employees State Insurance Act (ESI) Wage Ceiling Hiked The…

Income from Salaries: Tax Implications

Sunday, August 28th, 2016 Amritesh 2 responses

“Salary” is any remuneration paid by an employer to the employee in lieu of the service provided by him/her. Salary may include monetary and non monetary benefits which are taxable as per the Income Tax Act. Any payment made by the employer to employee in lieu of service is chargeable to tax. Salary has a much wider meaning for taxation purpose than it is normally understood. Income from Salaries comprises of various components and we will discuss the tax implications on the same.  Salary includes; Wages Fees, Commission, Perquisites or Profits in Lieu of Salary Advance Salary Leave Encashment Fund transferred from Unrecognized Provident Fund to Recognized Provident Fund Compensation due to variation in Service Contract Contribution to Recognized Provident…

Employees’ Provident Fund (EPF) Reforms: Online PF Withdrawal/Settlement

Sunday, October 25th, 2015 Amritesh 4 responses

Employees’ Provident Fund Organization (EPFO) is planning launch the online PF withdrawal facility by August,’16 end. It will not only reduce the paperwork for the statutory body but will also ensure faster settlement of claims. Individuals will be able to withdraw their PF online and won’t need to wait for months to get their dues. EPFO has currently got over 5 crore subscribers and the manual process is pretty time consuming. It has been trying to move to a digital platform for quite some time now and launch of Unique Identification Number (UAN) last year was a significant step towards the same. EPFO is already in the process of digitizing and setting up Central Data centres to facilitate the process.EPFO…

Employees’ State Insurance Act (ESI): Benefits and Features

Friday, May 1st, 2015 Amritesh 2 responses

Employees' State Insurance Act (ESI) Benefits and Features is aimed at providing medical care and other related benefits to the workers/employees working in various factories and establishments. The purpose of ESI scheme is to ensure that the proper health care facility is available to the majority of the population as it part of the Social Welfare program. Huge Infrastructure has been built up for the same purpose. ESI Hospitals, Dispensaries, Specialist Centers and Clinics are setup throughout the country to provide medical care to the members covered under the ESI Act. Apart, from their own setup ESI Authorities have also entered into arrangements with other Institutions to provide the best medical care. In my previous post I have covered the Salient Provision…

Payment Of Bonus Act 1965 (Amendment 2015)

Tuesday, November 25th, 2014 Amritesh 3 responses

In this article I will speak about the Payment of Bonus Act, 1965 which is a statutory benefit for the employees and does not cover any performance linked incentive, bonus or commission. It is a Statutory binding for the Employers to pay Bonus to the Employees covered under the Act. The Last Amendment was made on 1st January,2016 with the applicability effective retrospectively from 1st January,2014.   Applicability The Act extends to the whole of India and is applicable to every factory (as defined under Factories Act) and to every establishment wherein 20 or more workmen are employed on any day during the accounting year. Central/State Government can however, extend its provisions to any establishment employing less than 20 but…