I have come across the attached notification where for employees having PF wage below Rs. 15,000/-, 8.33% of the contribution amount by the employer will be reimbursed to the employer back. i.e., the GOI will bear the expenses of up to 8.33%.
Some pointers:
1. Freshers or employees having no PF and UAN number earlier will be taken into consideration.
2. The scheme is applicable from 1st of April 2016, with the base taken as 31st March 2016.
3. Only if an employer had an increase in the number of employees from the base date will be eligible for this benefit.
4. Required for the scheme are the LIN Number of the employer, Aadhar number of the employee, and registration with www.pmrpy.gov.in.
An attachment is provided for additional information.
Request fellow members/seniors to shed some light on the following queries of mine:
1. What will be the reimbursement frequency to the employer?
2. Some employers may manipulate the data by bringing in fake employees; how will the PF monitor that?
3. Also, what will be the minimum tenure the employee will have to be part of the system? Are there checks in place?
From India, Mumbai
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7Some pointers:
1. Freshers or employees having no PF and UAN number earlier will be taken into consideration.
2. The scheme is applicable from 1st of April 2016, with the base taken as 31st March 2016.
3. Only if an employer had an increase in the number of employees from the base date will be eligible for this benefit.
4. Required for the scheme are the LIN Number of the employer, Aadhar number of the employee, and registration with www.pmrpy.gov.in.
An attachment is provided for additional information.
Request fellow members/seniors to shed some light on the following queries of mine:
1. What will be the reimbursement frequency to the employer?
2. Some employers may manipulate the data by bringing in fake employees; how will the PF monitor that?
3. Also, what will be the minimum tenure the employee will have to be part of the system? Are there checks in place?
From India, Mumbai
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Hello Moushami,
The PMPRY scheme covers old establishments already registered with PF and new establishments registered with PF from 1st April 2016. It covers only new employees. A new employee means an employee who has never worked with an organization covered by PF and had no UAN in the past.
In respect of old establishments, the reference base to determine new employees for 2016-17 is 31st March 2016 and for 31st March 2017 for 2017 and 2018, and so on. For new establishments registered with PF on or after 1st April year 2016, the reference base is zero (as they were not in existence prior to that date).
Employers shall add new employees to the reference base as of 31st March 2016 or 31st March 2017, and so on. Each establishment will be allotted a LIN (Labour Identification Number) for the purpose of primary reference.
The government will bear the employer contribution to the extent of 8.33%, while the employer has to remit 3.67% to PF for all industries other than the apparel sector. For the apparel sector, the government will even bear the 3.67% of the employer contribution also in addition to 8.33%.
This benefit will be available to employers in respect of new employees as defined above for a period of three years only if the new employee continues with the same employer for such a period. The benefit is effective from August 2016.
Hope this will give some clarity.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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The PMPRY scheme covers old establishments already registered with PF and new establishments registered with PF from 1st April 2016. It covers only new employees. A new employee means an employee who has never worked with an organization covered by PF and had no UAN in the past.
In respect of old establishments, the reference base to determine new employees for 2016-17 is 31st March 2016 and for 31st March 2017 for 2017 and 2018, and so on. For new establishments registered with PF on or after 1st April year 2016, the reference base is zero (as they were not in existence prior to that date).
Employers shall add new employees to the reference base as of 31st March 2016 or 31st March 2017, and so on. Each establishment will be allotted a LIN (Labour Identification Number) for the purpose of primary reference.
The government will bear the employer contribution to the extent of 8.33%, while the employer has to remit 3.67% to PF for all industries other than the apparel sector. For the apparel sector, the government will even bear the 3.67% of the employer contribution also in addition to 8.33%.
This benefit will be available to employers in respect of new employees as defined above for a period of three years only if the new employee continues with the same employer for such a period. The benefit is effective from August 2016.
Hope this will give some clarity.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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Thanks for the reply, however, my question that whether there will be a reimbursement by the government of 8.33%, if yes, then when will they do it.
From India, Mumbai
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From India, Mumbai
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Moushami,
The procedural details will be worked out by the PF as the Scheme does not refer to it. There may be two ways: 1) the Govt/PF may directly reimburse the employer, or the Govt. may directly pay the 8.33% to PF, which may collect only 3.67% from the employer. You may await PF circular or contact the PF department in this regard. Other experts may shed light on this.
B. Saikumar
From India, Mumbai
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The procedural details will be worked out by the PF as the Scheme does not refer to it. There may be two ways: 1) the Govt/PF may directly reimburse the employer, or the Govt. may directly pay the 8.33% to PF, which may collect only 3.67% from the employer. You may await PF circular or contact the PF department in this regard. Other experts may shed light on this.
B. Saikumar
From India, Mumbai
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Hi All, Any update on the same. They have still no circular or notification, only press release. Thanks Moushumi
From India, Mumbai
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From India, Mumbai
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Hello Sir / Mam, I want to know about PMPRY scheme, HOW TO CALCULATE PF AMOUNT ? on Gross salary or basic salary + DA ? Kindly confirm.. Regards Santosh
From India, Mumbai
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From India, Mumbai
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Please see the attached EPFO notification with details regarding PMPRY
From India, Mumbai
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From India, Mumbai
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Dear Moushumi B,
With reference to your query, now 8.33% share would be automatically calculated while generating the challan, and the same amount would be directly paid by the GOI. You can see that the amount is excluded in the challan amount as well. That is, the total amount minus the excluded amount equals the net payable amount.
Hope your query is clear.
From India, Mumbai
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With reference to your query, now 8.33% share would be automatically calculated while generating the challan, and the same amount would be directly paid by the GOI. You can see that the amount is excluded in the challan amount as well. That is, the total amount minus the excluded amount equals the net payable amount.
Hope your query is clear.
From India, Mumbai
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Dear B.Saikumar Jee I have registered pmrpy with my pf code no.W
From India, Patna
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From India, Patna
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Dear B. Saikumar Ji,
Is it necessary to register all the employees in PMRPY for the benefit of 8.33%? I already have 600 employees registered in EPFO, and every month we deposit EPF for our employees.
Many of these employees have left work. So, is it necessary to register all employees or only active members in PMRPY?
Please help.
From India, Patna
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Is it necessary to register all the employees in PMRPY for the benefit of 8.33%? I already have 600 employees registered in EPFO, and every month we deposit EPF for our employees.
Many of these employees have left work. So, is it necessary to register all employees or only active members in PMRPY?
Please help.
From India, Patna
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