EPFO Notifies PMK Scheme

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Provident Fund

EPFO has finally issued the enclosed Notification regarding the guidelines and eligibility to avail benefit of FM announced 3 months PF Contribution by the Central Govt.

Though the Notification is issued, There is no provision yet made on the portal to avail the benefits for the month of March-2020.

Norms Relaxed for correction in DOB in EPFO

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Provident Fund
EPFO vide circular no.WSU/37(1)2019/DOB in supersession of earlier circulars dated 12th December 2006 and 12th December 2017 has accepted certain documents as a valid proof of date of birth in case of any dispute in the date of birth. 
 
As per the notification, the following are the list of documents: 
(1) Birth Certificate issued by the Registrar of Births and Deaths 
(2) Any School/education-related Certificate 
(3) Certificate based on the service records of the Central/ State Government Organisations 
(4) Passport 
(5) In the absence of proof of date of birth as above, Medical Certificate issued by Civil Surgeon after examining the member medically and supported with an affidavit on oath by the member duly authenticated by a Competent Court 
(6) Aadhar/e-Aadhar: the change in date of birth shall be accepted as per Aadhar /e- Aadhar up to a maximum range of plus or minus three years of the date of birth recorded earlier with EPFO. 
Please refer to the notification for detailed information

Govt to pay EPF for 3 months

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Provident Fund

Big announcement for EPFO subscribers under PM Gareeb Kalyan Scheme, the government will pay workers’ PF for 3 months
The government of India will pay the EPF contribution both of the employer and the employee (12% each) for the next three months, Finance Minister Nirmala Sitharaman has announced. This will be applicable for establishments with up to 100 employees, where 90% of employees drawing less than Rs 15,000 salary.

This is announced today & we are awaiting notification from EPFO regarding further details, eligibility for the same & shall share it as we receive it.

 

 

 

EPF Notification On reduction from 12% to 10%

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Provident Fund

The reduction in statutory rate of contributions from 12% to 10% for wage months May, 2020, June, 2020 and July, 2020 for all class of establishments covered under the EPF & MP Act, 1952 announced on 13.05.2020 by the Central Govt. as part of Atma-NirbharBharat package has been notified vide SO 1513 (E) dated 18.05.2020 published in the Gazette of India. The notification is available under the TAB- COVID-19 on the home page of EPFO website and circular from Regional Office Chennai is enclosed for clarification. 

The reduced rate is also not applicable for PMGKY beneficiaries, since the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totalling 24% of the monthly wages is being contributed by the Central Govt.

 

As a result of reduction in statutory rate of contributions from 12% to 10%, the employee shall have a higher take home pay due to reduction in deduction from his pay on account of EPF contributions and employer shall also have his liability reduced by 2% of wages of his employees. If Rs.10000/- is monthly EPF wages, only Rs.1000/- instead of Rs.1200/- is deducted from employee’s wages and employer pays Rs.1000/-instead of Rs.1200/- towards EPF contributions.  

In Cost to Company (CTC) model, if Rs.10000/- is monthly EPF wages, in CTC Model the employee gets Rs.200/- more directly from employer as employer’s EPF/EPS contribution is reduced and Rs.200/- less is deducted from his/her wages.

Under the EPF Scheme, 1952 any member has theoption to contribute at a rate higher than statutory rate (10%) and employer can restrict his contributions @ 10% (statutory rate) in respect of such employee.

 

 

EPF Notification On reduction from 12% to 10%