EMPLOYEES’ PROVIDENT FUND ORGANISATIONVASHI, NAVI MUMBAI

EPF & MP Act 1952

Responsibilities and Benefits

under “the Act” & Schemes

23rd December, 2016

Relevant notifications concerning Building Construction Industry

Establishments engaged in Engineers and Engineering Contractors (other than Building and Construction Industry )

W.e.f. 31/10/1964 Establishments engaged in building and construction industry

W.e.f. 31/10/1980 Establishments covered under Para 26(2) of EPF Scheme

W.e.f. 01/11/1990 Establishments engaged in Cleaning & Sweeping

W.e.f. 01/04/2001 Establishments engaged in Lodging houses, service apartments

and condominiums W.e.f. 08/12/2007

Campaign for employees enrollment and coverage of Establishments

[01/01/2017 to 31/03/2017]

In this special campaign Window with various relaxations will be provided from 01.01.2017 till 31.03.2017. Following recommendation will be made for approval of the

Government.•A nominal rate of levy of damages from the establishment for paymentof contribution for the past period during the campaign for enrolmentwill be Rs one (Rs.1) per annum.•Any employer during the campaign period, may send declaration formembership of the employees who were required or entitled to becomemembers of the fund on or after the 1st day of April, 2009 but before the1st day of January, 2017 who could not be enrolled for any reason.

•For the declaration made under this campaign, the employer shall beresponsible to remit the contributions and interest payable inaccordance with the provisions of the Act and the Schemes read withspecial provisions notified by the Central Government for enrolmentcampaign•No administrative charges will be levyable for the past period inrespect of the employees enrolled during the campaign. The necessaryamendments will be carried out under the relevant provisions of EPF &EDLI Scheme.•The workers enrolled under the campaign will be fully protected andthey shall be eligible to get all eligible interest and benefits as laid downin the Schemes.

The action will meet the twin objectives of increasing theenrolment, extending social security benefits to all workers and reducinglitigation.

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY )SchemeThe Pradhan Mantri Rojgar Protsahan Yojana(PMPRY) has been

launched to incentivise Employment generationFor the newly joined employees/Fresh recruits i.e for Job creationGovernment of India will be paying the 8.33% EPS contribution ofthe employer for the new employmentFor Textile(apparel) sector, the Government will be paying the3.67% EPF contribution also in addition to 8.33% EPS contribution.The Scheme will be in operation for a period of 3 years of theiremployment. Hence, the employers will continue to get the 8.33%contribution paid by the Government for the eligible new employees forthe next 3 years, provided such employee continues in employmentwith the same employer.The target group is Semiskilled and Unskilled workers with salaryupto Rs.15000 per month for 2016-17, Central Government has madea budget provision of Rs.1000 Crore.

EMPLOYER RESPONSIBILITIES

NEW ESTABLISHMENTS

Register establishment with EPFO on crossing the eligibility threshold – 20 or more employees of specified establishment types.

Other establishments - not statutorily required to register - can register voluntarily.

Registration is on-line, free of cost and hassle free. No requirement of visiting EPF office.

PAN is mandatory for registration. Digitally sign and upload requisite documents.

EXISTING ESTABLISHMENTS

Update establishment/owner particulars – online (FORM 5A).

Register digital signature for facilitating e-enabled on-line services.

Visit http://www.epfindia.gov.in/ For Employers, for details.

EMPLOYER RESPONSIBILITIES –RETURN &REMITTANCE

Timely payment of EPF dues is in business interest ofestablishments.

Reserve Bank of India had, on 16th April 2012 issued direction to allScheduled Commercial Banks to ensure on an annual basis that “allstatutory dues, including EPF dues have been paid by the borrower.”

Establishments using Bank credit from any Scheduled CommercialBank are required to furnish an annual certificate to their auditors tothis effect.

EPF compliant status of an establishment aids the businessenterprise in Indian as well as overseas business transactions.

EMPLOYER RESPONSIBILITIES EPFO solicits cooperation of all establishments in ensuring a decent post retirement life for allworkers.

EPFO solicits advice and suggestions from employers andestablishments in facilitating achievement of this goal.

Enrolment of all eligible employees on its rolls (regular or contractual) – wages upto &/or > Rs 15,000 at the time of joining the establishment.

New employee already a member of EPF from his/her previous employment would continue to remain EPF member.

Confirm remittance status of contractual employeesbelonging to an EPF registered establishment before releasing payment to such contractors.

Enroll employees drawing wages more than 15,000, if they so desire.

Verify and confirm that all employees have KYC (Aadhaar, Bank Account, PAN) compliant UAN (Universal Account Number).

EMPLOYER RESPONSIBILITIES –RETURN &REMITTANCE

Generate UAN for new employee and upload KYC information.

Update family particulars and nomination of all employees who are EPF members.

Deduct employee share from employee wages, add matching employercontribution, EDLI contribution and administrative charges and remit to EPF alongwith prescribed return immediately after disbursement of salary. (last date 15th ofthe month).

Before making payment to contractor, PrincipalEstablishment should verify whether EPF remittances have been made bycontractors (www.epfindia.gov.in--

>Our Services For Employers Important Links Establishment Search)

If remittance is not made, deduct the amountfrompayments being made to contractors and pay to EPFO {Section 8A, EPF & MP Act 1952}

DIGITAL INDIA & EASE OF DOING BUSINESS

a single Filings for establishments have been simplified throughwindow.

On-line services facilitate convenience, reduce cost, maketransactions rule based and eliminate arbitrary response toestablishments’ service requests.

EPF establishment services are all on-line, digitally enabled and without an human interface.

Establishments’ filing of their employees’ EPF claims arepresently paper based. UAN based claims are simple and employee centric.

Employees’ member accounts transfer claims are digitally enabled.

EPF EXPECTATIONS FROM EMPLOYERS

For all new employees joining an establishment ascertain if s/he ishaving an UAN. If yes, whether UAN is KYC enabled? If yes then collect the KYC

furnished earlier by employee to previous employer and confirm thesame to EPFO. If employee is having UAN but no KYC, collect and upload KYC. If employee not having UAN then certify the same for generation of UAN

by EPFO, collect KYC and upload. If contractor establishments are engaged by the Principal establishment,ensure that EPF dues for all contractual employees are paid. If not paid by contractor, deduct the amount from dues payable to

contractor.

-Online filing of Return of particulars of ownership (Form-5A) of all establishments ismade mandatory.

-Registration/Uploading of DSC(Digital Signature Certificate) by all ECR Registeredestablishments.-Amendment in Para 38(1) and 48 of EPF Scheme, 1952

making it mandatory for employers to pay the statutory contributions throughINTERNET BANKING – Link provided –www.epfindia.gov.in – ‘For employers’ –‘online payment facility for employers’

--Removal of grace period of 5 days for PF remittances (effective from Feb, 2016) theemployers will therefore need to deposit the remittances within 15 days of close ofevery month from February, 2016 onwards.

Online allotment of PF Code number to Establishments (OLRE):

With DSC w.e.f 01/12/2015

“EXCLUDED” ESTABLISHMENTS RESPONSIBILITIES

Section 16 of the EPF & MP Act 1952 excludes certain classes of establishments fromEPF.

These primarily include establishments:-

i. Belonging to or under the control ofthe Central Government or a State Government AND

ii. WHOSE EMPLOYEES ARE ENTITLED TO THE BENEFIT OF PENSION INCONTRIBUTORY PROVIDENT FUND

ACCORDANCE WITH ANY SCHEMEOR OLD AGEOR RULE FRAMED BY THE

CENTRAL GOVERNMENT OR THE STATE GOVERNMENT GOVERNINGSUCH BENEFITS;

Establishments having employees not covered by (ii) above are required to be enrolled under EPF.

“EXCLUDED” ESTABLISHMENTS’ RESPONSIBILITIES

Excluded establishments having contractual employees employed directly or through acontactor, or both, are required to be enrolled under the EPF & MP Act, 1952.

Contract details are to be furnished by all Principal employers to EPFO to ascertain & follow up compliance status of all contractual employees.

Government of India CPWD Works Manual 2012 specifies “Responsibilities of Contractor” in Section 34.5 as under:-

“(1) The contractor shall comply with all the provisions of the Minimum WagesAct, 1948, Contract Labour (Regulation and Abolition) Act, 1970 and rulesframed there under, and other labour laws affecting contract labour that may bebrought into force time to time.”

All establishments following the above Manual may ensure payment of EPF dues in respect of all such establishments.

--- Incentive Scheme to employers: In order to boost the process of seeding ofUAN with KYC, an ‘Incentive Scheme’ has been launched for the employers underwhich a claim refund of upto 10% of administrative charges payable to EPFO canbe claimed upon completing specified tasks (furnishing member information anddigitally authenticated KYC details). The Scheme shall be in operation for one yearbeginning from 1st January, 2016 to 31.12.2016.

Ref: Gazettee Notification GSR NO.443 (E) dated 10.02.2016.

--Special emphasis on coverage of contractor workers and workers in the buildingand Construction industry and outsourced employees working with GovernmentSector.(Concerns by Cabinet Secy, Labour secy to all chief Secy, Parliamentary Standing Comm on Labour,…----Provisions For entering Work order details in our website by Principal Employers…

EPF BENEFITS

Employees’ Provident Fund - All employees with wages upto Rs 15,000 required to join the Fund. Accumulations payable on retirement, resignation, death.

Partial withdrawals permitted for financing life insurance policies; Acquiring house or site; Marriage of self or dependents; Education of children; Treatment of illness, Strike/lock out of factories etc.

Employees’ Pension Scheme- Entitlement for pension after 10 years of service & on attaining the age of 50 years. Minimum pension of Rs 1,000/- Pension admissible to dependents; widow, children, dependent parent/s, nominee,

disabled child(life long),etc.

Employees’ Deposit Linked Insurance Scheme Maximum admissible amount Rs 6 lac.

WHAT IS UAN

• UAN stands for Universal Account Number.

• UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments.

• UAN enables linking of multiple EPF Accounts (Member Id) allotted to a single member

• Members can view details of his/her all EPF Accounts.

WHY UAN!

• Huge labour turnover rate due to increasing short-term contractual employments.

• UAN facilitates linking of multiple EPF accounts of a member.

• Aadhaar, Bank Account and PAN are the key KYC documentsidentified.

• Digitally authenticated KYC would facilitate clubbing of all previous PF account numbers.

• UAN is lifelong account number.

• Aadhaar enabled UAN will eventually enable members to access EPF services directly.

EPF MEMBERS’ SERVICES

• Correct updated information about his/her EPF Account

• Electronic updates on credits/debits to EPF Account

• Portability of EPF Member Account

• Uniquely identifiable Member Account

• Digitally certified member accounts to preempt frauds/mis-credits

• Claims settlement without employers’ intermediation

UAN ALLOTMENT & ACTIVATION

• EPF members in respect of whom at least one contribution is received in or after Jan-2014 UAN is allotted by EPFO

• EPF members not having UAN & no contribution received in orafter Jan-2014 can request EPFO to allot UAN.

• Any citizen (whether EPF member or not) can request for UAN UAN is allotted by EPFO

• UAN holder can register his/her mobilewith EPFO for UAN activation

• UAN holder has the option to change the mobile number linked with his/her UAN.

CORRECT UPDATED INFORMATION ABOUT MEMBERS’ EPF ACCOUNT

• Post Activation member receives SMS about credits/debits to their EPF account.

• Members can give a missed call to get details about their PF account.

• Members can download EPF mobile app to track their EPF account.

• Members may list all existing EPF accounts – EPFO would facilitate consolidation of all accounts.

UAN ENABLED MEMBER SERVICES

•In case of Aadhaar enabled UAN, memberscan submit their claims directly with EPFO.

•Online applications for all EPFO services.• No need to go to the employers

attestation. Especially useful for EPF members who change their jobs and/or locations frequently.

• Members can themselves download UAN Card.

EPFO REQUESTS MEMBERS TO

• Collect their UAN from the current employer

• Activate the UAN; (Visit UAN Members e-sewa onhttp://uanmembers.epfoservices.in)

• Provide requisite KYC details (Aadhaar, Bank Accountdetails & PAN)

• List all their previous EPF Account numbers with EPFO

• For any assistance - contact UAN Help Desk (18001-18005); www.epfindia.gov.in -> Our Services -> ForEmployees -> Services -> UAN Help Desk

MEMBERS ALREADY HAVING A UAN

•On joining any new establishment provide the same to new employer.

•IF KYC not provided to previous employer, provide the same to new employer.

•If KYC provided to previous employer give the same to new employer.

•This will facilitate auto-transfer of previous EPF account.

Employees’ Provident Fund Organisation

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AWARDS AND REWARDS

ISSA GOOD PRACTICE AWARD--The EPFO has been awarded the International Social Security Association (ISSA) Good Practice Award for Asia and thePacific 2015. The Jury appreciated the Organization’s entry ‘Good Governance and Service Quality’ and confirmed ita good practice. The EPFO, India was selected from among the 48 entries from 29 members in 16 different Countries

--SMART E-GOVERNANCE INITIATIVE, DIGITIZING INDIA NDTV AWARDS; WINNER: EPFO, PROJECTNAME: UNIVERSAL ACCOUNT NUMBER AND CONSOLIDATION

Employees’ Provident Fund Organisation

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AWARDS AND REWARDS

National award for e-Governance 2015-16 by Govt. of India

EPFO Wins GOLD AWARD FOR INNOVATIVE USE OF TECHNOLOGY IN E-GOVERNANCE.(for UAN Programme)

THANKYOU