Payroll and Compliance - The Monthly Chronicle

December 2017

Social Security Awareness Campaign launched by Employee Provident Fund Organisation (EPFO)

Due to EPFO going online and the use of online facilities to claim withdrawal of accumulated Provident Fund value (PF), there have been many instances of pre-matured closure of PF account by the subscriber. To discourage such instances of pre-matured closure of PF account, EPFO launched the Employees’ Retention and AADHAAR campaign from 1 January 2017 to 30 September 2017. After a successful campaign, EPFO has now launched the Social Security Awareness campaign. This new campaign is effective from 1 November 2017 to 31 December 2017.

The Social Security Awareness campaign is aimed at creating awareness among EPFO members about the disadvantages of closing their PF account pre-maturely, and informing them about various beneficial schemes like PMPRY, housing and Aadhaar, etc., under EPFO. It is planned and proposed to use many interactive sessions and documents to impart such information among users.
To read more about the campaign, please click here (PDF).

Important Procedure Change for registering ‘IP’ under ESIC scheme

Under the Employees’ State Insurance Corporation’s (ESIC) Scheme, every employee whose fixed wages is equal to or less than Rs. 21,000 needs to be registered under the scheme to receive insurance. For registering an employee for the first time under the scheme, the respective employer needs to fill in the details under ‘Form 1’ along with nomination and family particulars.

A new joiner to an organisation who is eligible under ESIC scheme would be registered by their respective employer/factory as an Insured Person (IP) and as per details provided, and a Temporary Identity Card (TIC) is generated for the employee. Following this, the ESIC payment challan for the respective month is generated based on IP numbers.

The employee then takes this TIC and submits this to a dispensary under the ESIC at a location convenient to the employee. There is a large list of dispensaries in every district around the country. The Insured Person would thereby link themselves as well as their dependents to receive from this dispensary.

The ESIC has revised the process of employee registration from October 2017. As per the currently available online Form 1, it is mandatory for every registrant to provide the details of the preferred Dispensary for themselves and their dependents at the time of registration. Without these details, the Insured Person’s number and TIC card will not be generated. This also affects the generation of a payment challan and thereby remittance.


Introduction of Self-Declaration Form for Insured Woman (IW) and Insured Person (IP) under ESI Scheme

The ESIC had noticed some instances where the family particulars of IP/IW vary from those available in the IP portal, which leads to undue benefit. To avoid any such cases, it has been decided to obtain a self-declaration from the Insured Woman for the number of her surviving children as on date of presenting the maternity benefit claim. The Insured woman shall now submit the Self-Declaration Form along with claim form No. 19 for the settlement of Maternity Benefit Claim.

Note: If there is an inconsistency between the declaration and the particulars on the portal, then 12 week of maternity benefit would be paid immediately from the ESIC Branch. The remaining payment, if any, will be made to the Insured Woman within 14 days subject to verification.

Discontinuance of Physical Form 9, Release of New e-Form 9

There was a new provision introduced for the discontinuance of physical Form 9, and e-Form 9 was released for registration of employee. This change was applicable from October 2017. In November 2017, this provision has been extended to members who joined on or after 1 April 2012.

All regional offices are advised to approve and generate e-Form 9 within two months.
Read more details here (PDF).

Rules Relating to Unclaimed PF Balance under Exempted Establishments and their Trusts

The Standing Committee in its 26th report has raised grave concerns about the unclaimed amount lying with the PF Trusts of exempted establishments. The committee in its report has emphasised that:
All exempted establishments and their Trusts should make all-round efforts to trace the workers/employees/nominees of the members so that the unclaimed amount lying with the Trusts can be disbursed.

The Committee has provided a set of instruction to be followed by all the exempted establishments:

  • The unclaimed amount must be re-calculated as per the recent amended provisions of EPF Scheme, 1952 or duly approved Trust Rules, whichever is more beneficial to the members.
  • It’s a statutory responsibility of the establishment to transfer the unclaimed amount which remains inoperative for 7 years to the Senior Citizens' Welfare Fund.
  • This amendment also mandates every institution to identify the unclaimed amounts on an annual basis by 30th of September of each finical year and make transfers to the Fund on or before the 1st day of March every year.

Note: Members claiming to be entitled to the unclaimed amount transferred to the Fund may apply to the respective institution within 25 years from the date of credit of the unclaimed amount into the Senior Citizens' Welfare Fund. (Where no request or claim is made within a period of 25 years from the date of credit of the unclaimed amount to the Fund it shall escheat to the Central Government unless a court otherwise orders.)

Read more details here (PDF).

Direct Allotment of Universal Account Number (UAN) to Individual

Keeping in mind the difficulties faced by every employer in generation of UAN details for employees joining the organisation, an open functionality is being provided at the unified portal. This new function will allow individuals to generate their own UAN by providing requisite details into the unified portal.

To read more about the details please click here (PDF).

Karnataka Professional Tax (PT) made Online

Every such person who is liable to pay PT is to register themselves at and use the online facilities thereof.

Amendment to Haryana Contract Labour Regulation Act (CLRA)

Earlier, the CLRA in Haryana was applicable to every employer or contractor who employs 20 or more workmen any day of the preceding 12 months. Now, the limit has been increased to fifty numbers. This change is applicable and effective from October 2017.

Online Functionality for Correction of Details of EPF Subscribers

Currently, if an employee wants to correct his or her details (name, date of birth, gender, etc), then the employee as well as employer must submit a joint request for making such changes under PF and UAN details. In order to reduce paper-work and avoid this time consuming process, EPFO has launched a new functionality under EPFO scheme. Under this new provision, a member can submit an online request for correction through the member’s unified portal. Once the request is submitted, the change request is compared with Aadhaar details and then processed accordingly.

To read more, please click here (PDF).

Note: The above changes are subject to actual implementation on portal.

Calendar December 2017

Compliance Calendar for the month of December, 2017
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th December 17 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15thDecember 17 Gujarat Gujarat PT regulations By Challan
20thDecember 17 Karnataka Karnataka PT regulations By Challan & Online
21st December 17 West Bengal West Bengal PT regulations By Challan
30thDecember 17 Assam & Orissa State-wise regulations By Challan
30th December 17 Maharashtra Maharashtra PT regulations Online
PF Central
15thDecember 17 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15thDecember 17 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th December 17 TDS Payment Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5thDecember 17 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
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Sources: Government Notifications, Circulars, Press releases.


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