Friends,
The government proposes to make the following amendments to the PF Act:
1. Definition of 'wages' to be changed in conformity with the Code on Wages 2019. Allowances above 50% or the notified percentage of all remuneration to be included in wages.
2. For employees below a certain threshold, contribution to be optional.
3. Provide a time limit of 5 years for enquiry under section 7A.
4. Section 11 - references to repealed Acts to be omitted.
5. Enhancement of the quantum of fines by 10 times.
6. Provision for compounding of certain offences.
7. EPF subscribers will have the option to subscribe to the National Pension System.
8. Pre-conditions by way of guidelines for the grant of exemption to be provided.
Comments on the draft amendments may be submitted by September 22, 2019.
Thanks
From India, Malappuram
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1446The government proposes to make the following amendments to the PF Act:
1. Definition of 'wages' to be changed in conformity with the Code on Wages 2019. Allowances above 50% or the notified percentage of all remuneration to be included in wages.
2. For employees below a certain threshold, contribution to be optional.
3. Provide a time limit of 5 years for enquiry under section 7A.
4. Section 11 - references to repealed Acts to be omitted.
5. Enhancement of the quantum of fines by 10 times.
6. Provision for compounding of certain offences.
7. EPF subscribers will have the option to subscribe to the National Pension System.
8. Pre-conditions by way of guidelines for the grant of exemption to be provided.
Comments on the draft amendments may be submitted by September 22, 2019.
Thanks
From India, Malappuram
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Hello,
The proposed amendments to the PF Act you mentioned have several implications. Let me break it down for you:
1. 🤑 Changing the definition of 'wages': This means that allowances that are more than 50% of the total remuneration will now be considered as part of the wages. This may increase the PF contribution because the PF is calculated on the basis of wages.
2. 🤑 Making the contribution optional for employees below a certain threshold: This aims to ease the financial burden on lower-income employees. However, it's important to keep in mind that reducing or opting out of PF contributions means less savings for retirement.
3. 🤑 Setting a 5-year time limit for inquiry under section 7A: This ensures that any issues or grievances with respect to PF are addressed within a reasonable timeframe.
4. 🤑 Omitting references to repealed Acts in Section 11: This is more of a housekeeping change to keep the PF Act up to date.
5. 🤑 Increasing fines by 10 times: This emphasizes the seriousness of compliance with the PF Act. Failure to comply can now result in hefty penalties.
6. 🤑 Allowing for the compounding of certain offenses: This means that some offenses can be settled by paying a fine rather than facing prosecution.
7. 🤑 Providing the option for EPF subscribers to subscribe to the National Pension System: This offers EPF subscribers another avenue for retirement savings.
8. 🤑 Introducing guidelines for granting exemptions: This provides clarity on the conditions under which an exemption from the PF Act can be granted.
If you want to comment on the draft amendments, you should take each point and provide your feedback based on your personal experience and understanding. You can also consult with your HR department or a labor law expert for a deeper understanding of these amendments.
Remember to submit your comments by 22.9.2019. Please do not miss this opportunity to have your say on these important changes. 😊
I hope this helps! Let me know if you have any other questions.
From India, Gurugram
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The proposed amendments to the PF Act you mentioned have several implications. Let me break it down for you:
1. 🤑 Changing the definition of 'wages': This means that allowances that are more than 50% of the total remuneration will now be considered as part of the wages. This may increase the PF contribution because the PF is calculated on the basis of wages.
2. 🤑 Making the contribution optional for employees below a certain threshold: This aims to ease the financial burden on lower-income employees. However, it's important to keep in mind that reducing or opting out of PF contributions means less savings for retirement.
3. 🤑 Setting a 5-year time limit for inquiry under section 7A: This ensures that any issues or grievances with respect to PF are addressed within a reasonable timeframe.
4. 🤑 Omitting references to repealed Acts in Section 11: This is more of a housekeeping change to keep the PF Act up to date.
5. 🤑 Increasing fines by 10 times: This emphasizes the seriousness of compliance with the PF Act. Failure to comply can now result in hefty penalties.
6. 🤑 Allowing for the compounding of certain offenses: This means that some offenses can be settled by paying a fine rather than facing prosecution.
7. 🤑 Providing the option for EPF subscribers to subscribe to the National Pension System: This offers EPF subscribers another avenue for retirement savings.
8. 🤑 Introducing guidelines for granting exemptions: This provides clarity on the conditions under which an exemption from the PF Act can be granted.
If you want to comment on the draft amendments, you should take each point and provide your feedback based on your personal experience and understanding. You can also consult with your HR department or a labor law expert for a deeper understanding of these amendments.
Remember to submit your comments by 22.9.2019. Please do not miss this opportunity to have your say on these important changes. 😊
I hope this helps! Let me know if you have any other questions.
From India, Gurugram
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