Monday, 9 December 2019

EPFO monthly contribution to be reduced to increase take home salary

EPF withdrawal

EPFO monthly involvement to be cut to division take-home income

The employee share of EPFO involvement may fluctuate between 9-12% dependent on areas. The elasticity will help employees to take home a better income said an official
The side effect of this change will lower the superannuation saving the number of employees in the long run.

NEW DELHI: The take-home income of employees in the organized the area may go up a little as the union government looks to permit select areas to cut monthly legal judgments on account of the employee's provident fund (EPF).

But, the side effect of this change will lower the superannuation saving amount of employees in the long run.

The variation of rules, which will be made part of the Social Security Code bill 2019, to be listed in Parliament this week, may permit employees to pay less than the present 12% legal involvement. In contrast, the employer involvement will go on at 12%.

Presently, both employees and employers of a recognized area establishment contributes 12% each of the basic income each month. The rules may not be general for all areas and government may permit this in a sure area like MSME, textile, and start-up firms, as per two government officials familiar with the improvement who spoke on the condition of privacy.

"The employee share of EPFO contribution may be different between 9% and 12%, depending on areas. The elasticity will help employees to take home a better income," the first official said.

Monday, 2 December 2019

Latest Employees' Provident Fund (PF) Withdrawal Rules 2019

Provident Fund (PF) withdrawal rules 2019

Latest PF 2019

According to EPFO, individuals are worthy to withdraw provident fund balance in the situation of marriages of children, their higher education, compensation of home loans, urgent medical situations, restoration of home, purchase or construction of a house, acquire of land and at a particular age before having retired.
However, certain rules have been put in place to address the urgent requirements of people under which a person is allowed for premature withdrawals from the EPF account.

New Withdrawal Rules Provident Fund (PF) 2019:-

  • Unemployment: According to the latest EPF rules, a person is allowed to withdraw up to 75% of the total EPF balance on being unemployed for one month after resigning a job. The left 25% of the EPF balance can be withdrawn if the person remains jobless for over 2 months.

  • Retirement: After reaching the age of 54 years and within 1 year of retirement/superannuation (whichever is earlier), a person is suitable to withdraw up to 90% of the PF balance.

  • Marriage/education of children: In case of financial requirement for the purpose of marriages or post matriculation education of children, you can withdraw up to 50% of the employee share with interest-only after ending of 7 years.epf withdrawal online

  • Handicapped: by any chance of handicapped people, the EPFO body allows part withdrawal from the EPF balance for buying equipment for minimizing trouble on account of handicap. Under this, a person can withdraw 6 month’s basic wages and high cost of living allowance (DA) or employee share with interest or cost of equipment, whichever is the least.

how to pf withdraw

  • Illness: A person can apply for partial withdrawal from the EPF balance for the treatment of illness in certain cases. For self-usage or for the treatment of family members, EPFO permits a person to withdraw 6 month’s basic wages and DA or employee share with interest, whichever is the least.

  • Loan repayment: For the compensation of home loan EMIs, an individual is eligible to withdraw 36 month’s basic wages and DA or total of employee and employer share with interest or total remaining principal and interest, whichever is least, only after finishing the 10-year membership period. pf withdrawal process online

  • Purchase of land/house: A person is allowed for impulsive partial withdrawal from the EPF account for purchasing land or house only after finishing point of 5 years as a member of EPFO. For the purpose of purchase of house/flat/construction of house including the acquisition of the site, an individual is allowed to withdraw the total of employee and employer share with interest or total cost or 24 month’s basic wages and DA (for purchase of site)/36 month’s basic wages and DA (for purchase of house/flat/construction), whichever is lower.

  • House renovation: Entertainingly, EPFO also has a facility of incomplete premature withdrawal for addition/adjustment/development in the house owned by member/spouse/jointly with a spouse. Under this, a person can withdraw 12 month’s basic wages and DA or employees share with interest or cost, whichever is the least. This aptitude can be availed two times, first time, after 5 years of completion of the house and, for the second time, after 10 years from withdrawing the balance for the first time. Latest EPF 2019

Thursday, 21 November 2019

The Code On Wages 2019 updated|Latest Code On Wages 2019 India

latest code on wages

Lok Sabha
Lok Sabha
Lok Sabha
Jul 23, 2019
Jul 30, 2019
Aug 02, 2019

  • The Code On Wages Act 2019 India

The Code on Wages Act, 2019 was presented in Lok Sabha by the Minister of Labour, Mr. Santosh Gangwar on July 23, 2019. It looks to manage pay and extra installments in all vocations where any industry, exchange, business, or production is done. The Code replaces the associated four laws: (I) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal compensation Act, 1976.
Inclusion: The Code will apply to all workers. The focal government will settle on wage-related choices for vocations, for example, railroads, mines, and oil fields, among others. State governments will resolve on choices for every single other company.

  • Draft (Central) Rules u/s 67 of the The Code on Wages Bill-2019; calling for objections/suggestions, if any within one month from today  
updated payment wages act

Wednesday, 20 November 2019

More flexibility in labour laws introduced by Indian Government

More flexibility in labour laws on the way

employment & labour law in india

New Delhi: The Centre on 20th November 2019 propose  facilitating of Labour laws through the presentation of the Industrial Relations Code Bill, which has proposed to hold the arrangement to permit organizations with more than 100 labourers to look for earlier endorsement for lay-offs, however, try to acquaint an arrangement with let the administration choose the number as opposed to looking for Parliament endorsement.

The Industrial Relations Code Bill was cleared by the bureau on 21st November 2019 and will be presented in Parliament. It looks to consolidate arrangements of some work laws.ent.The charge seeks to blend arrangements of three focal work laws-Trade Unions Act, Industrial Employment Act, and Industrial Disputes Act apart from Simplifying the regime.

The new Labour Code, which will be presented in the Parliament in the continuing winter session for approval is going to hand firms a different advantage. Hiring and firing of votive workers will be now much stress-free for the employers.

The Union Cabinet chaired by Prime Minister Narendra Modi gave its approval on 20th Nov for the overview of the Business Relations Code, 2019 in the Parliament.
This code is meant to simplify and merge 3 central labour acts with The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946 and The Industrial Disputes Act, 1947.
This code is a delay of a June decision where the Ministry of Labour took a stand to merge all the forty-four labour laws into 4 codes, including industrial relations, wages, community security and welfare, health and working situations.

How will it benefit employers?

The idea is to progress the working situations of the votive staff and bring them on par with the fixed employees. From an HR perception, this will mean that a company need not have many employment policies for contractual and fixed staff.
Especially for areas like maternity leave and stretched leave for mothers, a similar policy will be followed which would make the management process easier. In the past, leaves were a bone of argument between corporations and labourers.
A crucial aspect of the new draft code is the fixed-term employment proposal that has also been welcomed by the industry. This will mean that the individual corporations would not need to involve with any third-party contractors. Instead, under the new regime, they will be able to hire contract workers in a straight line for a fixed contract.

How will it help employees?

Presently, labour difference of views takes a long time to be set on. The Industrial Relations Code has proposed setting up of a two-member tribunal for settling labour arguments. Earlier, there was a one-member team that led to delays in getting a resolution.

Insofar as benefits are worried, the draft code has said that set social security welfares will be comprehensive to all types of workers. This means that all company benefits as well as insurance and leave encashment could be provided to these workers (contractual or temporary workers). Earlier, contractors would be passed on these benefits, and there were reports of leakage of cash/insurance amount.

Just the once this code gets a sign from both the houses of the Parliament, it will be drafted into law. This will include all the existing rules used for defining occupation contracts of staff.

Sunday, 17 November 2019

New ESI Updates From 1st October 2019

ESIC registration

1. New employee registration within 10 days

  • Ideally, an employee must be added to the ESI subscription on the day that he joins. But this is not usually the case. In most cases, the new employees are added to ESI at the end of the month, when salary calculations are being done. But the new ESI update states that new employees have to be registered to ESI within 10 days of their joining the company. Thereafter, it will not be possible to add new employees to ESI. Since the ESI portal itself will not accept the new registration post 10 days.
esi changed in 2019

2. ESI contribution to be done within 42 days

  • Generally, the ESI contribution of one month has to be paid by the employer latest by the 15th of the succeeding month. Exceeding this due date results in the payment of penalty and interest on the employer. But the new ESI updates state that this monthly ESI payment can be done latest within 42 days. Once this date is passed, employers will not be able to make online ESI payments. An alternative payment method for this has also not been given yet.

new esic changes oct

3. Average daily wage revision as per Code on Wages

  • In the Code on Wages, it was stated that the National Minimum Wages would be Rs 176. Hence, the ESI department has stated that employees with a minimum wage of less than Rs 176 per day, do not have to give their ESI contribution. Their ESI contribution would be paid by the government on their behalf. The employer contribution would be paid by the employer as normal. So the notice on the ESI portal states that “Revised exemption of contribution for average daily wages of Rs 176 or less has been made effective from 1st September 2019”. Thus, the employee’s contribution for October challan would be considered zero. The earlier average daily wages was Rs 137.

esic for employee

4. ESI ID Card issue for employees

  • ESI would earlier issue an ESI Pehchan Card for member identification. This was later replaced with a printed form with the employee’s picture attached. This was then used by employees to get medical benefits at ESI hospitals and dispensaries. This format has again been replaced by an ID card. All employees will now have to visit their ESI branch office and get their ESI ID Card issued.

Friday, 15 November 2019


Minimum rates of Wages in Rupees

Workers to Get 37% Hike as SC Upholds Delhi Govt Order on Minimum Wages

  • Setting aside a stay by the Delhi High Court, the apex court on Monday rejected all objections by employers.

  • The Supreme Court has upheld a Delhi government notification issued in March 2017 that will result in a 37% hike in worker’s minimum wages. The case had been pending in courts for two years. All permanent, fixed term, contractual, casual as well as daily-wage workers will benefit from this order.

All objections raised by the employers’ were rejected by the Supreme Court as it made this wage hike final on Monday.

  • The Delhi High Court had stayed the Delhi government’s notification last year on August 4, based on a plea made before it by a number of associations of employers. A clutch of employers had argued in the High Court that the burden of minimum wages and its upward revision would cause them hardship that they would not be able to bear.

  • After the High Court ruling turning down the wage hike, the workers had appealed in the Supreme Court. An October 2018 order had given the workers interim relief. Accordingly, the Delhi government had constituted a Minimum Wage Advisory Committee in November 2018 that finalised the wages. This amounts to Rs.14,842/- per month for unskilled workers, which was submitted before the Supreme Court.

On Monday, while hearing the case, the Supreme Court accepted this proposal of the Delhi government and asked it to notify the revised wages.

  • This would be notified after the DA (Dearness Allowance) component is added to it.                  The wage hike notified two years ago also came after an Advisory Committee under the Minimum Wages Act, had recommended it. The committee included five members, one each representing employers and employees and three government officials who were its ‘independent’ members. Now it is to be based on the new minimum wages notification as decided upon by the Minimum Wages Advisory Committee in January 2019, as per a press statement from Delhi CITU or Centre of Indian Trade Unions, which had become a party to the worker’s plea before the Supreme Court, and termed the judgement as “historic”.

  • The logic of the High Court, which had struck down the Delhi government notification, was circuitous. One the one hand, the court had asserted the constitutional validity of the Minimum Wages Act and also said that minimum wages should not just be “subsistence wages”. It had even reiterated earlier judgements which have held that some defects in the composition of an advisory committee or in its proceedings should not normally stand in the way of the final decision taken by the government, which is not bound by such recommendations.

  • Then, the judgement had taken a completely different tack: It side-stepped the Act’s mandate to protect workers from exploitation, refused to adopt the ‘beneficial construction’ approach, went into technicalities that precedent would not sanction and struck down the notification. The judgement then repeatedly criticised the Delhi government’s mission to raise wages, and in doing so it almost appeared to have adopted a counter-mission to overturn the hike.

minimum wages for 10th passed in delhi

On the one hand, the High Court had correctly pointed out that courts should not intervene in minimum wage fixation orders unless there were “most substantial grounds”. It had stressed that the Minimum Wages Act “clearly” existed to “prevent exploitation of labour” and dismissed the arguments of petitioners as “irrelevant”.

  • But, it also said that the employers and employees were not properly represented in the Advisory Committee of the Delhi government, that its advice, though not binding, needed to be considered with an open mind, and that the government appeared to have shown a prejudice towards both employers and employees. It said that the constitution of the Advisory Committee was completely flawed, and that it did not allow employees or employers a hearing, nor did it take into account various facts. Thus, it was held that the process of fixation of the wages violated the principles of natural justice.

Wages act for workers

Calling for this as “substantial ground” for intervention, the High Court had declared the notification as unconstitutional because it violated not only the Minimum Wages Act but also Article 14 (right to equality) of the Indian Constitution.

  • The hike announced in 2017 was substantial but it was still well short of the minimum wages given to central government employees by the Seventh Central Pay Commission, which amounts to Rs18,000 per month. The Delhi government had wanted to hike wages from Rs.9,745 to Rs13,350 per month for unskilled workers, and similarly for semi-skilled and skilled workers, to be computed on a pro-rata or per day of work basis. Both the Delhi government and the Pay Commission claimed to have computed their wage levels based on the same source: the 1957 Indian Labour Conference recommendations, as approved and further added upon by the Supreme Court in a 1991 judgement.

Even now, the substantially hiked wages achieved through a long court battle leave room for further hikes by the Delhi Government

Further Extension Of Due Date For Filing Annual Returns Under The Maharashtra State Tax.

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