Payroll and Compliance - The Monthly Chronicle

September 2017

Amendment Made in Payment of Wages Act

The Ministry of Labour and Employment has amended the provision of the Payment of Wages Act. As per the latest notification passed, section 1 subsection 6 has been amended.
From now onwards, the provision of the Payment of Wages Act will not apply to individuals whose monthly salary is Rs. 24,000 and above.

EPFO Launches Software for Generation of Certificate of Coverage

In July 2017 EPFO has released a circular informing all about the revised composite application form Certificate of Coverage (COC) in respect of Indian Worker (having Indian Passport) going to work in a country with which India is having Social Security Agreement was issued. Keeping the above circular in mind, EPFO department has released a  new application software for online generation of Certificate of Coverage (COC) . After the launch of the online system for the generation of COC, the requirement and process for physical application for COC will stand discontinued. All employees thereby are advised to utilize the online system only. Note: The User IDs and passwords to use the new application software shall remain the same as earlier user IDs and passwords issued by IS Division. Any issues regarding User ID/password may please be addressed to Shri. Dinesh Dharni, Deputy Director (IS) at

Employee Provident Fund Organisation to Go Online from August 2018

The Digital India initiative was launched in India last year, under which major social security schemes like EPF, pension and insurance for formal sector workers have already launched a host of online services for remittance, return filing and withdrawal. These online portals and services have helped to improve the delivery of services for their five crore subscribers.

EPFO is planning to make all its services online (i.e. all services accessible online, including through mobile handsets) and to make EPFO a paper-free organisation. This online facility would help the EPFO minimise instances of corruption and public harassment.

Union Cabinet Clears Minimum Wage Code Bill

The new wage code bill was approved by the Union Cabinet, chaired by Prime Minister Narendra Modi. This new bill is proposed to consolidate the four acts listed below and the provisions under these acts:
  • Minimum Wages Act, 1948;
  • The Payment of Wages Act, 1936;
  • The Payment of Bonus Act, 1965;
  • The Equal Remuneration Act, 1976.

The new bill will ensure a standard minimum wage across all sectors by integrating four labour-related laws. The bill seeks to empower the Centre to set a minimum wage across all sectors, and states will need to maintain that. States, however, will be able to provide higher minimum wage in their jurisdiction than that fixed by the Centre, since labour is in the concurrent list.

This proposed legislation is expected to benefit over four crore employees across the country.

EPFO to Take Action Against Establishments that Default on PF Contribution

EPFO has launched and deployed a new system that will track in real time defaults on PF remittance by any organisation. This system has been put in place to reduce remittance defaults by establishments. In case an establishment defaults on any payment, penalties will be levied, and interest will be charged for damages caused due to the belated deposit of dues. 
Under this system, the employer will be prosecuted under the Indian Penal Code (IPC) for non-payment of employees’ share of contribution (deducted from the wages/salary of the employees but not deposited in the fund).
Compliance Calendar for the month of September, 2017
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th September 17 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15thSeptember 17 Gujarat Gujarat PT regulations By Challan
20th September 17 Karnataka Karnataka PT regulations By Challan & Online
21st September 17 West Bengal West Bengal PT regulations By Challan
30thSeptember 17 Assam & Orissa State-wise regulations By Challan
30th September 17 Maharashtra Maharashtra PT regulations Online
PF Central
15th September 17 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15thSeptember 17 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th September 17 TDS Payment Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5thSeptember  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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