Payroll and Compliance 2018-01-25T05:58:32+00:00

PAYROLL AND COMPLIANCE
The Monthly Journal- January 2018
One EPF account for one employee

HR CONSULTING SERVICE
The Monthly Journal- January 2018
One EPF account for one employee

A new facility has introduced by Employee Provident Fund Organization (EPFO) under which an employee can consolidate all their earlier PF accounts with their present UAN number without any interference of the previous employer.

For this you need to activate the UAN member portal with your Mobile number and UAN ID, after that, you can link all your previous PF accounts to one UAN by using the link: MIS portal Login>UAN>Previous EPF account linking option.

This assists the employee to free from the hassle of moving the previous employer to present and to EPF organization and ensure consolidation of PF accounts as soon as possible.

Note: The above functionality will be available to the user once information is implemented in EPF portal.

CORRECT DIRECTLY DATE OF BIRTH IN EPFO SITE 

On 8th December, A meeting was conducted on fraud analysis and management in EPFO and which results in to pursue the process below in order to correct the DOB (Date of Birth) of members of the Employee’s Pension Scheme 1995:

In case, need to correct DOB upto Plus or minus one year. Aadhar card will be accepted as the valid document to perform correction in DOB.

In case, need to correct the DOB year for more than one year, then have to submit the additional documents along with the Aadhar card such as Matriculation Certificate, Passport, PAN, Certificate Issued by the Registrar, etc.,

The associated member should be informed for submission of further valid proof of birth if needed while applying through mobile/online/offline.

To read more, click here (pdf).

STANDARD OPERATING STRATEGY FOR SETTLEMENT OF CLAIMS UNDER EPFO

Presently, there are many accounts that are not linked to Aadhar, that prevent them from claiming the benefit associated with online services. To resolve this issue encounter by this account holder the below guidelines has been given:

A standard operating strategy has been provided which contains review points. This states that the claimant candidate should surrender canceled cheque in original which contains – claimant name, Account number, IFSC code or bank branch printed on it along with type of claims. In case, the claimant doesn’t have the cheque facility with their associated bank then the claimant needs to provide a copy of bank passbook duly attested by the bank authorities where the account is maintained or by the employer.

These changes are implemented with the prompt action.

To read more, click here (pdf).

SC RULING LEADS TO ENORMOUS RISE IN PRIVATE SECTOR PENSIONS

Note: The below note is provided to explain the concept of an enhanced pension.

Many amendments have been coming into a pension scheme over a period of time. For example, the ceiling limit for EPS computing was increased to 15,000 in 2014. With respect to this, the pension needs to increase and paid, but, no proper demands were made for that increased amount.

In October 2016, The apex court ruled in consideration of employees, stating that EPFO can’t inhibit the higher-pension option to those who applied for the withdrawal option before a “cut-off date“. The Apex Court also permitted those who hadn’t made a higher addition to the EPS on a monthly basis to use the option by making a lump-sum deposit of the differential amount due. In order to implement the court order EPFO again taken 1 year.

Because of this amended calculation, presently every pensioner is eligible to get higher EPS value. It’s completely not related to the company contribution policy towards PF or confirmation of PF & Pension withdrawal. The member has to claim this increased pension through Pension and PF department from the government.

It’s the responsibility of the employer to create awareness among the employees:
Clarity to every individual with their rights and pension policies and procedures.
Organize an awareness seminar for employees of the company by requesting an EPS official.

REFORM OF DUE DATES FOR MONTHLY RETURN SUBMISSION OF EXEMPTED ESTABLISHMENT

Monthly return due date for exempted establishments was imposed for the wage month of March 2017 and was need to be registered by 15th of May 2017. Under this, all the exempted establishments/employers were directed to file the statutory online returns in time i.e. On or before the 25th of the month following that to which it associated.

To read more, click here (pdf).

Sources: Government Notifications, Circulars, Press releases.

DISCLAIMER

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