AUTOMATIC TRANSFER OF EPFO ACCOUNTS ON JOB CHANGE!!!

AUTOMATIC TRANSFER OF EPFO ACCOUNTS ON JOB CHANGE - SOONER GOING TO BE ACTIVE

Soon, we will not have to worry about transferring or merging our Employees’ Provident Fund (EPF) account on job change. This is because the Employees’ Provident Fund Organisation (EPFO) has approved the development of centralised IT-enabled systems by C-DAC. This centralised system will facilitate the de-duplication and merger of all PF accounts of members. It will remove the requirement of transfer of EPF account whenever a member changes jobs.

This decision was approved in a meeting of the Central Board of Trustees (CBT) held on November 20, 2021.

Currently, as per the EPF rules, once a member changes his/her job, a new EPF account is opened with the new company. The employee is required to transfer the money held in the EPF account with the previous employer to his/her new employer. This can be done online on the Member Sewa portal, provided Universal Account Number (UAN) is linked with Aadhaar. If UAN is not linked with Aadhaar, then the employee will have to do this offline by submitting a form to the new employer.

It is important to transfer one’s EPF account from the previous employer to the new one to ensure that the continuous service period is accurately captured for the purpose of calculation of pension for the Employees’ Pension Scheme (EPS) and for income tax purposes.

Prashant Singh, Vice President and Business Head of CPO- Teamlease services says, “So far employees had been undergoing nightmare to transfer their PF from earlier employer to the new one. Paperwork, timelines and back and forth led to confusion and delay in the entire process. With this new initiative, it would ease the way to transfer the PF from earlier employer to new employer seamlessly. The employee just needs to ensure that his/her UAN is linked to Aadhaar. If not linked a small manual/offline form submission can be given to new employer to establish that. This is another big relief for employee and employer as this is used to consume huge amount of time between both of them to process and transfer...

Please share your suggestion / feedback in the comment section - Vj

New Labour Code Draft: Salary, PF, gratuity, working hours likely to change from October 1, 2021

The draft labour law which is likely to come into effect from 1^st Oct 2021, which comprises the basic pay requirement, change in working hours, etc.,

The four new codes on industrial relations, wages, social security and occupational health safety (OSH), and working conditions will rationalise 44 central labour laws. Union Ministry is set to implement several changes in the rules of labour law from October 1, 2021. 

According to new labour law.. 

1. The working hours of employees are going to be increased from 9 hours to 12 hours (4 working days instead of working for 5 days in a week).

2. Impact on PF, Gratuity, Social security contributions due to the condition of maintaining basic pay as 50% of actual salary as mandatory.

The existing provisions of the new rules will lead to an increase in working hours for employees from nine to 12 hours, while the in-hand salary will also see a change. Under the new wage code, allowances have been capped at 50 per cent, which will lead to half of the monthly pay being calculated as basic wage. Provident fund (PF) contribution is calculated as a percentage of basic wage, which includes basic pay and dearness allowance. Increase in basic pay will result in an increase in the PF contribution, which will reduce the take-home pay for workers. The PF liability for employers will also increase in many cases.

The new code will allow organisations to let their employees work for four days instead of the currently mandated five if employees are working for 12 hours a day. 

The Centre has also proposed a provision for free medical check-ups for workers through the Employees State Insurance Corporation.

- VJ

TamilNadu Employment Exchange - Time Extended for Expired Renewal... W.e.f 28th May 2021

Procedure of TNVelaivaaippu Registration - 2021 for Employment Exchange Renewal of Lapsed registration

Tamil Nadu Government has launched TNVelaivaaippu portal because now a days everything is going to digital so by using this app students could also apply online and they can also track their application’s status online.

In this portal the government of Tamil Nadu will provide all information regarding state’s schemes, scholarships and jobs etc. So this would be very helpful portal for all the students.

Is your employment renewal date expired? Tamil nadu govt has extended TN Velai Vaaippu Employment Renewal for those who’ve failed to renew their employment record on time.

TN Velai Vaaippu Renewal online can be done now only till 3 months from the date of order. So don’t delay any further, renew your employment registration in just few secs.

Many of you have already requested information regarding how to renew an employment card online after the renewal date is expired ?

How Do i Renew my lapsed employment card ?

As detailed above, visit TNVelaivaaippu website tnvelaivaaippu.gov.in , login, renew it.

How Do i recover my employment ID ?

If you forgot your employment ID, you may click Forgot ID option, to get it by Email address you’ve provided while sign up.

Employment Renewal date expired 2020, what to do ?

Please login as soon as possible, and if you forgot for a longer period , then you will not have any chance of renewing it again.

Many a times, candidates forgot to renew their employment registration online due to many reasons, though there’s no solution for all, here’s a wonderful opportunity for those who missed it.

Do share this TN employment news to all your friends on Facebook, Twitter, whatsapp , it may help someone.

If you face any issues while trying to renew tnvelaivaaippu?

Do post your concerns in comment section, so that we or other candidates who knows the solution can answer and help you.

- VJ

PMAY (U) - Housing for every citizen Project - 2022

Pradhan Mantri Awas Yojana (Urban)-PMAY (U) 

Pradhan Mantri Awas Yojana (Urban) Mission launched on 25th June 2015 which intends to provide housing for all in urban areas by year 2022. The Mission provides Central Assistance to the implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. As per PMAY(U) guidelines, the size of a house for Economically Weaker Section (EWS) could be upto 30 sq. mt. carpet area, however States/UTs have the flexibility to enhance the size of houses in consultation and approval of the Ministry.

In continuation to this Government’s efforts towards empowerment of women from EWS and LIG unlike earlier schemes, PMAY (U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission. Verticals of PMAY (Urban) A basket of options is adopted to ensure inclusion of a greater number of people depending on their income, finance and availability of land through following four options

Types of PMAY Schemes

To ensure that eligible applicants in cities, as well as rural areas, can equally avail the facility, the PMAY is bifurcated into two primary schemes-

Pradhan Mantri Awas Yojana- Urban (for towns and cities)

Pradhan Mantri Awas Yojana- Gramin (for villages and other rural areas)

The Pradhan Mantri Awas Yojana is primarily divided into 4 components

In-Situ Redevelopment

Under the PMAY-U, the government aims to leverage the land in urban areas that are encroached by slum developments and utilize it to construct formal urban residential establishments for the slum dwellers. The scheme aims to uplift the standard of living of people in such areas. Under the in-situ redevelopment program, the eligible tenants are identified under the Housing for All Plan of Action (HFAPoA) city report. Respective authorities can involve the slum dwellers through their association for consultations about the planning and implementation of the redevelopment.

Affordable Housing in Partnership

Under this initiative, the government plans to provide affordable housing to the beneficiaries by partnering with the public and private sector. This includes involving different industries from different States and Union territories in India to work together and plan affordable housing projects for the beneficiaries. To check whether you fall into the beneficiary category or not, you can check your Pradhan Mantri Awas Yojana eligibility at the official website, online.

Credit Linked Subsidy Scheme

The PMAY’s Credit Linked Subsidy Scheme (CLSS) offers an interest subsidy of 6.5% on home loan. Applicants can also enjoy an extended home loan tenure of 20 years under the PMAY CLSS. Moreover, the net present value (NPV) on the interest subsidy is calculated at a discount rate of 9%. The PMAY lists a maximum limit of INR.6 lakhs to avail the benefits of the home loan subsidy.

Enhancement and construction of beneficiary-led house

The beneficiaries who are not eligible for the above-mentioned PMAY schemes can get financial aid from the ‘enhanced and construction of beneficiary-led’. Under this PMAY scheme, beneficiaries belonging to the EWS (Economically Weaker Section) can avail financial assistance up to INR. 1.5 Lakhs from the Central government. These funds can then be used to construct new houses or upgrade the existing one with basic amenities.

Please feel free to write us @ hrglobalnetwork2020@gmail.com for any clarification / assistance.

Free "Webinar on the four Labour Codes - Interaction with Regulators and Subject Matter Experts" - 21st Jan 2021 @ 3.00pm

 "Webinar on the four Labour Codes - Interaction with Regulators and Subject Matter Experts"

Date Time: Jan 21, 2021 03:00 PM India

Facilitated by: KPMG

Cost: Free Webinar

Link to register: https://social.kpmg/4mwsr

You can make use of this great opportunity to gain knowledge about new labour codes by investing your time alone.

Please feel free to reach us @ ltglobalnetwork2020@gmail.com / Whatsapp @ +91- 90 87 88 89 91 for any clarification / assistance.

You can share this post to your friends / colleagues who can make use of it effectively - Vj

MoHFW released awareness note about Covid-19 Vaccines (CovidShied & Covaxin) which is scheduled for roll-out in the country on 16th January 2021

Covid-19 pandemic has drastically impacts any business, industry and individual economically, physically & psychologically. Vaccine is the only way out to overcome this pandemic threat and our Govt has done an taken utmost effort to roll-out vaccine across the country on 16th January 2021.

Ministry of Health & Family Welfare (MoHFW) has played major role in rolling out two vaccines - CoviShied and Covaxin. MoHFW has released an awareness note about covid-19 vaccines to enable beneficiaries to make use of it appropriately.

Ahead of the Covid-19 vaccination drive, MoHFW has shared a leaflet of DOs and DON'Ts, highlighting precautions and contraindications for vaccination along with a comparative factsheet for both the vaccines (Covishield and Covaxin).

Key highlights in the awareness note:

* Covid-19 vaccination is allowed only for 18 years and above.

* Pregnant women or who are not sure of their pregnancy and lactating mothers shouldn't receive the vaccine.

* Administration of Covid vaccine should be done separated by an interval of 14 days.

* The second dose should be of the same vaccine of which the first dose was administered. Interchanging Covid-19 vaccines is not allowed.

* Person with the history of Anaphylactic or Allergic reaction to a previous dosage of Covid-19 Vaccine.

* Covid-19 Vaccination is to be deferred for 4-8 weeks having symptoms or after recovery from SARS-COV-2

* Vaccine should be administered with caution in persons with history of any bleeding or coagulation disorder like clotting factor deficiency, coagulopathy or platelet disorder.

* Immuno-deficiency, HIV, patients on immune-suppression due to any condition might have less response to the Covid-19 Vaccines.

Comparative sheet of two vaccines in a tabular column for easy reference:

Pls. comment if this information is useful to you, follow & share for more such informative posts

Employee Leaving Organization without serving notice period liable to18% GST on Notice Recovery!!!

Notice pay recovery is the most common phenomenon in any Organization. Certainly, one of the debatable topics when it comes to taxability under the GST Law.

A contract of employment is a contract between the employer and an employee where the employee promises to provide employment services to an employer in return for a consideration i.e. “salary”. Further, in most cases, the contract of employment also provides for recoveries on account of breach of such contract.

18% GST on recovered notice pay for employees while leaving the job without service notice period. It is terming as "Tolerating an Act", the Gujarat Authority of Advance Ruling said that recovery of the notice pay amount would be in lieu of "Breach in serving stipulated notice period".

An individual leaving his / her job without serving the stipulated notice period will now cost employees 18 percent goods and services (GST) tax on the pay recovered for the notice period duration.

The Gujarat Authority of Advance Ruling has held that an employee exiting a company without completing notice period would be liable to pay 18 percent GST on notice recovery.

The ruling was issued in a case involving Amneal Pharmaceuticals, an export oriented unit (EOU) engaged in the manufacturing of pharmaceuticals products based out of Ahmedabad. One of the employees had sought an advance ruling on the issue. The notice period in question was three months. The authority has held that recovery of amount from an employee for breach in serving the stipulated notice period would qualify as "tolerating an act" on the part of the employer and would be liable to GST.

Further, the amount will not be covered under the exemption provided to employee - employer relationship under the GST Act.

Case Reference:

Case Name : In re Amneal Pharmaceuticals Pvt. Ltd. (GST AAR Gujrat)

Appeal Number : Advance Ruling No. GUJ/GAAR/R/51/2020

Date of Judgement/Order : 30/07/2020

Courts : AAR Gujarat Advance Ruling

Please follow, share and comment our page for more such informative post.

Aatmanirbhar Bharat Rozgar Yojana (ABRY) - 3.0 Stimulus Package - Eligible for EPFO Coverage without Employer Contribution / Deduction from Employee!!!

 Aatmanirbhar Bharat Rozgar Yojana (ABRY) is the scheme proposed to incentivize employers who are registered with EPFO for generating new employment and re-employing persons from low wage (Gross < 15,000/-) bracket who were lost their jobs during Covid-19 Pandemic from Mar'2020 to September'2020.

The Central Government will pay both the employees’ and employer’s share of contribution payable under the EPF & MP Act, 1952 or only the employees’ share, depending on the employment strength of the establishment, directly to the Universal Account Number of eligible employee maintained by the EPFO.

The scheme commence from 1st October 2020 and shall remain open for registration of eligible employees up to 30th June 2021. The benefits will be available for the period of 24 months from the date of registration of new employee, which not later than 30th June 2023.

Ex: If an employee is registered on Oct'2020 then the benefit can be availed till Oct'2022 (24 Months only) not up to June'2023.

The definition of "New Employment" refers in this scheme is "who was not working in any establishment and did not have UAN prior to 1st Oct 2020, typically it should be first employment".

The definition of "Re-employment" refers in this scheme is "any member having UAN account but lost the job due to pandemic between 01st March 2020 to 30th September 2020 in any establishment and joining the same or different establishment after 1st October 2020.

Basic Condition to avail ABRY Benefit by the employer:

Establishment already registered before the commencement of this scheme shall have to employ, over and above the reference employee base, minimum two employees if the actual employee count is less than 50 or five employees if the referred employee count is greater than 50.

Establishment already registered with EPFO should maintain the same reference of employment count, addition of employees are allowed without any condition however the employment count should not below the reference employee count of entering in to the scheme.

Ex: If an establishment entered in to this scheme on Oct'2020 with the existing employee count of 100, they need to add 5 new joinees / re-joining employees as mandatory to claim the benefit for joiners however the employee count in Nov'2020 should not be lesser than 100 (reference employee count in Oct), then they are not entitled to claim the benefit for particular month though the addition is happened but actual employee count is lesser than reference employee count due to exits.

For new establishment getting registered with EPFO between 01.10.2020 to 30.06.2021, the reference base of employees shall be treated as zero. If any such establishment registers voluntarily with less than 20 employees and continues to maintain less than 20 employees during the validity period of this Scheme, such establishment will not be allowed to exit from statutory Schemes under EPF & MP Act, 1952 and beneficiaries who received benefit shall not be allowed to make final withdrawals until expiry of a period of two years after validity period of this Scheme.

Eligibility criteria for Employees:

* New employee has to be registered for this Scheme during the period from 01.10.2020 to 30.06.2021 by employer of eligible establishment.

* The new employee should have Aadhaar seeded Universal Account Number.

* The benefit under this scheme shall be paid for the wage months in which he continues to be in employment in any eligible establishment subject to a period of maximum 24 months from date of registration as new employee.

* Any eligible new employee under this Scheme shall become ineligible if his/her monthly wage exceeds 14999/- at any point of time during this scheme period.

* Any new employee is already a registered beneficiary and his/her employer is eligible to or is availing benefits of payment of employer’s share by Central Government under PMRPY/PMPRPY 2016, no such benefit in respect of such new employee shall be available under this Scheme.

Eligibility Criteria for Employers:

* For Establishments employing up to and including One Thousand (1000) employees (contributing EPF members with UAN) in wage month September, 2020, the employer’s and employee’s share of contribution as per statutory rate applicable to establishment subject to maximum of 24% of wages. These establishments will however continue to get subsidy of employer’s share even if the number of contributing EPF members with UAN exceeds 1000 during the scheme period.

* For Establishments employing more than One Thousand (1000) employees (contributing EPF members with UAN) in wage month September, 2020, employees’ share of contribution as per statutory rate applicable to establishment subject to maximum of 12% of wages.

Employer has to submit a declaration / Certificate accepting all the terms & conditions to follow legibly without deviating / over-looking the process to claim benefits unlawful.

Monitoring Mechanism:

EPFO shall put in place a robust mechanism to monitor the implementation of this Scheme on a weekly basis.

EPFO shall provide monthly reports to the Ministry of Labour & Employment (Directorate General of Employment), Government of India for effective monitoring of this Scheme.

Third Party evaluation:

EPFO shall undertake Third Party Evaluation of the Scheme within a period of three months from the closure of this Scheme and send a report to the DGE, Ministry of Labour & Employment, Government of India.

The expenditure incurred towards evaluation of the Scheme shall be borne by the EPFO out of its own resources.

This is a great scheme which can be utilized appropriately by Small / Mid-size organization to save 24% of PF remittance cost for 2 years. 

Please Comment / Share this post and write to hrglobalnetwork2020@gmail.com for any clarification / assistance.

One Time Relaxation given by ESIC to Employers who couldn't file Return of Contribution from Apr'2020 to Sep'2020 - till 15th January 2021

 The ESI contribution rate from July'2019 stands at 4 per cent, which includes the employer contribution of 3.25 per cent and the employee’s contribution of 0.75 per cent. The ESI contribution rate was revised downwards from July 1, 2019.

In the case of every employee, the employer is liable to pay his own contribution and also deduct employee’s share from the wages and pay these contributions to the ESI within 15 days of the last day of the calendar month in which the contributions are due.

Keeping in view the problem being faced due to Covid-19 pandemic by the employers in filing ESI contribution for the contribution period April 2020 to September 2020 within 42 days, the government has relaxed the provisions of The Employees’ State Insurance (General) Regulations, 1950.

Accordingly, the one-time opportunity has been given to those Employers who could not file ESI contribution for the contribution period April 2020 to September 2020 within 42 days after the end of the contribution period.

The Employers are now allowed to file this contribution for the Contribution Period from 1st April 2020 to 30th September 2020, up to 15.01.2021. There will, however, not be any impact on the employees working in establishments and contributing to the ESI. The ESI benefits to the employees will continue to be provided as usual.

However, the relaxation comes with conditions:

1. This one-time relaxation is limited to the contribution period ending September 2020 only and no further relaxation in limitation for other contribution period is allowed.

2. Such relaxation is not extended to other older or new contribution period.

Please follow our page for more such informative posts - Vj