The Ministry of Labour and Employment has published draft The Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Bill 2019, seeking stakeholder’s inputs. Following are the some of the key amendments proposed.
- Definition of Wages: One of the key amendments proposed is on the definition of Wages, which has been introduced in the line of definition of Wages defined under Code on Wages, Bill 2019. Instead of the existing definition of ‘Basic Wage’, the amendment seeks to fix computational basis at ‘wage’, with further stipulation that allowances paid above 50% or as notified percentage, of all remuneration will be considered as ‘Wage’ for the purpose of PF contribution.
- Period of limitation: The draft bill proposes to introduce a limitation period of 5 years for initiation of enquiries to decide the applicability of law to an establishments and also to determine amount due from the employer under any provision of the Act and Schemes frame thereunder.
- Option to avail National Pension Scheme: An option to avail National Pension Scheme in lieu of the benefits available under the PF act have also been proposed.
- Penalties: There is tenfold increase in the quantum of penalties that is being proposed. There is also a provision being proposed for composition for minor violations.
- Contribution: An option to make a higher contribution by employee(if they desire)is also being proposed. This will however have no impact on the employers contributions share. Further, Govt may also propose different rate of contribution for any class of employee for a specified period.
Copy of the draft bill can be accessed from here:
Last date of sending inputs to Government is 22nd September, members are requested to share their inputs with us latest by 12th September as per the format given below.
|Section /Sub-Section /Clause /Proviso of the draft Amendment Bill||Issue / problem in the relevant clause||Proposed change / correction that is suggested||Reason for the proposed change||Remarks, if any|
Kindly mail your inputs at email@example.com
We look forward to your response.