The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952: WAGES

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WAGES

• Lumpsum payment of Rs. 450 to each of the employees in lieu of arrears of revised wages and House Rent allowance under an agreement - Parties agreeing that this payment not to be accounted for the purpose of P.F. Contribution Contrary finding of Commissioner that contribution has to be made - Finding of Commissioner if sustainable?
No.

Associated Cement Company Ltd, v. R.M. Gandhi, Regional Provident Fund Commissioner, Gujarat, (1995) III LLJ (Supp) 168: 1992 LLR 192: 1992 Lab IC 2110: 1992-1 CLR 142: 1992I LLN 252 (Guj HC).

• The arrears of wages with retrospective effect arising out of the award under Industrial Disputes Act also come within the definition of basic wages for payment of EPF contributions. .

Prantiya Vidyut Mandal Mazdoor Federation, v. Rajasthan State Electricity Board, (1992) 2 SCC 723: (1992) 20 ATC 302: (1992) 4 SLR 5: 1992 LLR 401: 1992 (64) FLR 1051: 1992-1 CLR 926 (SC).

• Management of a school cannot escape the liability to deposit EPF contribution on D.A. paid to the staff even when it was received through the Government.

Gyan Bharati v. RPF Andaman & Nicobar Islands, (1996) 2 CLR 734: (1996) 2 LLN 1254: 1996 LLR 1004 (Cal HC).

• 'Reward for good work' in lieu of overtime will amount to 'basic wages'.

D.C.M. Ltd, v. Regional Provident Fund Commissioner, 1998 LLR 532 (Raj HC).

• Special allowance paid to some employees will not attract EPF contribution.

R. Ramanathan Chettiar Jewellers, Madurai v. Regional Commissioner, Employees' Provident Fund, Madurai, 1998 LLR 1145 (Mad HC).

• When production bonus is not linked with productivity, it will be deemed as 'basic wages' for provident fund contributions.

Daily Partap v. The Regional Provident Fund Commissioner Punjab, Haryana, Himachal Pradesh & Union Territory, Chandigarh, (1998) 9 SCC 90: AIR 1999 SC 2015: 1999 LLR 1 (SC).

• Wage increase with retrospective effect in a settlement will attract EPF contributions.

Ponni Sugar and Chemicals Ltd., Pallipalayam, Erode v. Cauvery Sugar and Chemicals Ltd., (2001) 2 MLJ 832: (2002) 2 LLN 322: (2001) III LLJ 1201: 2002 LLR 25 (Mad HC).

• Interim advance paid under a settlement will be wages to attract EPF contributions.

Dalmia Cement Bharat Ltd, v. Regional Provident Fund Commissioner, 2002 LLR 1043 (Mad HC).

• Incentive bonus paid to employees as a conditions of service and not on the basis of contract that too .lor the work done within eight hours and not beyond hours will be basic wages hence the EPF authorities have rightly held that EPF contributions will be payable.

Poompuhar Shipping Corporation Ltd., Tuticorin v. Regional Provident Fund Commissioner, Madura;, (2004) 1 LLJ 663: 2004 LLR 135 (Mad HC).

• Since the special allowance appeared to be the dearness allowance, hence it would be basic wages' to attract the EPF contributions.

Regional Provident Fund Commissioner (II), West Bengal v. Vivekananda Vidya Mandir, (2005) 2 GIN 307: 2005 LLR 399 (Cal HC).

• Employees' provident funds contributions cannot be claimed on cash value of any food concession or canteen subsidy.

Wipro Ltd., Kancheepuram v. Presiding Officer, Employees Provident Fund Appellate Tribunal, New Delhi, 2007 LLR 624 (Mad HC).

• Criminal proceedings under Provident Funds Act against the employer will not be quashed merely by depositing the arrears.

Hotel Dock Palace Pvt. Ltd. v. State of West Bengal, 2007 LLR 711 (Cal HC).

• 'Basic wage' for EPF will include dearness allowance and nothing else.

Thiru Arooran Sugars Ltd. & Five Others v. Asst. Provident Fund Commissioner (ENF> Employees' Provident Funds Organisation, Trichirapalli, 2007 LLR 1254 (Mad HC).

• Encashment of leave not to be included for provident funds contributions.

Manipal Academy of Higher Education v. Provident Fund Commissioner, 2008 LLR 443 (SC).

• Food Allowance will not be treated as Dearness Allowance for provident fund contributions.

Tata Hydro Electric Power Supply Co. Ltd. v. Regional Provident Fund Commissioner, Maharashlra & Goa, 200S LLR 1013 (Bom HC).

• Provident contribution will be payable on interim payment to the employees in response to their demand.

Dalmin Cemerlt (Bharat) Ltd. v. Regional Provident Fund Commissioner, Trichirapalli, 2009 LLR 11 0 (SN) (Mad HC).

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P F Act

EPFO Launched new Grievance Management Portal

Enhancement of the cash benefit on Pension:

Enhanced the cash benefit payable to the family of EPF subscribers on their death in service from present maximum of rs.60,000 to rs.1.00 lakh. Published in the gazette of india, part ii, section 3, subsection (i), vide number g.s.r. 523(e), dated the 18th june, 2010

Download Notification

EPF(Amendment) Scheme, 2011

MINISTRY’ OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 15th January, 2011

G.S.R. 25(E).—In exercise of the powers conferred by Section 5, read with sub-section (1) of Section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Provident Funds Scheme, 1952. namely

1. (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2011.

   (2) It shall come into force from the 1st day of April, 2011

2. In the Employees’ Provident Funds Scheme, 1952, (hereinafter referred to as the said Scheme), in paragraph 60, after sub-paragraph (5), the following sub-paragraph shall be substituted, namely:—

“(6) Interest shall not be credited to the account of a member from the date on which it has become Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72”

3. In the said Scheme, in paragraph 72, in sub-paragraph (6):—

   (a) for the words “but no claim has been preferred” the words “but no application for withdrawal under paragraphs 69 or 70 or transfer, as the case may be has been preferred ” shall he substituted:

   (b) for the words “three years”, at both the places where they occur, the words “thirty six months” shall be substituted.

    [F. No. S-35012/01/2010-SS-1I]
S. K.. DEV VERMAN, Jt. Secy.

For more details :
The PF old balance will stop earning interest. After three years of inactivity.
Download Notification

ESIC

Employees’ State Insurance (Amendment) Act, 2010.

Following are the some salient feature of the ESI (Amendment) Act, 2010.

Extension Of The ESI Scheme To The Construction Site WorkerS :

The Construction site workers who were kept out of coverage of ESI act till date, Now covered with the implementation of it roll out "any time, anywhere". esic services will be available to these mobile and migratory workers with no geographical barrier.

APPRENTICES COVERED:

Benefits under the scheme have also been extended to apprentices and trainees employed under Apprentice Act and Standing Order Act.

POWER TO APPROPRIATE GOVERNMENT;

The appropriate Government is empowered to extend the provisions of ESIC Act 1948 to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise after giving one month’s notice of its intention of doing so by notification in Official Gazette instead of notice period of six months.

DEFINITION OF DEPENDENT EXPANDED:

Definition of “dependents” as contained in clause 6A of section 2 of the Act has been extended to enlarge the number of beneficiaries under the act such as:
A widow, a legitimate or adopted son below the age of 25 years and an unmarried legitimate or adopted daughter. The age limit of the dependants has been enhanced from 18 to 25.

Dependent parents as per definition of “family” has been substituted so as to include;

“A minor brother or sister wholly dependent upon the earnings of the insured person in case the insured person is unmarried and his or her parents are not alive”. It has been also clarified that dependent parents to include “Dependent parents, whose income from all sources does not exceed such income as prescribed by the Central Government”.

SMALL FACTORIES ALSO ARE COVERED:

The definition of Factory under Section 2(12) has been amended to expand coverage of smaller factories. The amended Act covers all factories, which employ 10 or more persons irrespective of the fact whether the manufacturing process is being carried out with the aid of the power or without the aid of the power.

INSPECTORS RE-DESIGNATED AS SOCIAL SECURITY OFFICERS:

The designation of Inspector has been re-designated as “Social Security Officer” to enroll them as facilitator of the Scheme rather than to act as mere inspectors.

VRS EMPLOYEES ALSO COVERED:

Medical benefits to the insured person and his spouse have been extended under circumstances where insured person retires under Voluntary Retirement Scheme or takes premature retirement. In the earlier Act the benefit was applicable only on attaining the age of superannuation. Proviso to sub section 3 of section 56 has been substituted to provide the same.

NOTIONAL EXTENSION OF PREMISES:

Accident occurring to an insured person while commuting from his residence to the place of employment and vice-a-versa shall be deemed to have arisen out of and in the course of employment for the purpose of benefit under the Act. A new section 51-E has been added for this purpose.

UNORGANIZED SECTOR EMPLOYEES COVERED:

A new Chapter V-A has been added to enable provision for extending medical care to non insured persons against payment of user-charges to facilitate providing medical care to the below poverty line (BPL) families and other un-organized sector workers covered under the Rashtriya Swasthya Bima Yojana (RSBY).

Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.

Section 91 A of the Act is amended to removing. retrospective grant of exemption from the provision of the Act

Download ESI (Amendment) Act 2010

ESIC ONLINE PORTAL:

ESIC Launched New Online Portal for Submitting Application and Returns

ESI WAGE CEILING:

ESI WAGE CEILING ENHANCED FROM Rs. 10000 TO Rs. 15000 w.e.f 01-05-2010

Download ESI Wage Ceiling Notification

AP MINIMUM WAGE

SECURITY SERVICES :

Zone I:All Municipal Corporations

Zone II : All Municipalities

Zone III : Rest of the area

Highly Skilled :
(Security Supervisor/ Officer/ Field Officer)

Z-I: 7500, Z-II: 6500,Z-III: 5000

Skilled :
(Security Inspector/ ASO/ Intelligance and Fire Fighting Personal, Head Gaurd)

Z-I: 7000, Z-II: 6000, Z-III: 4500

Semi-Skilled :
(Asst. Security Inspector /Security Gaurds with Arms)

Z-I: 6500, Z-II: 5500, Z-III: 4250

Un-Skilled :
(Security Gaurds without Arms)

Z-I: 5000, Z-II: 4250, Z-III: 4000

CONTRACT LABOUR :

Andhra Pradesh contract labour minimum wages are revised w.e.f 18 aug'09 as:
Un-Skilled: Rs. 155 per day, Rs. 4030 per month

Semi-Skilled: Rs. 195 per day, Rs. 5070 per month

Skilled: Rs. 235 per day, Rs. 6110 per month

I D Act 2010

Enhancement of wage ceiling of a workman from Rs. 1600/- pm to Rs. 10000/- pm under section 2(s) of the Act

Direct access for the workman to the Labour Court or Tribunal in case of disputes arising out of section 2A of the Act

Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under sections 7 and 7A of the Act
Establishment of Grievance Redressal Machinery in every Industrial establishment employing twenty or more workmen for the resolution of disputes arising out of individual grievances

Empowering the Labour Court or Tribunal to execute the awards, orders or settlements arrived at by Labour Court or Tribunal

Link to ID Act (Amnd) Act, 2010

HR Info.in

Hr Info.in

Workmen's compensation Act, 2010

Given below are the synopsis of the changes.

THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman" or "workmen" is mentioned in the entire Act the same needs to be read as "Employee" to make it gender sensitive.

The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased to Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.

The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor.

actual reimbursement of medical expenses incurred on account of injury caused during course of employment.

Empower the Central Government to specify monthly wages for the purpose of compensation. It is 50% of Rs.8000/-. This amendment is notified vide Central Government Notification No. S.O. 1258(E) vide Ministry of Labour & Employment dated 31st May 2010.

Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL employees.

The Commissioner shall dispose compensation cases within a time period of 3 months.

Download Emploee's Compensation (Amnd) Act, 2010

Download Emploee's Compensation Wage Limit Notification