I have come across the attached notification where for employees having PF wage below Rs.15000/- , 8.33% of the contribution amount by employer will be reimbursed to the employer back. i.e., the GOI will bear the expenses of upto 8.33%.
Some pointers:
1. Freshers or employees having no PF and UAN number earlier will be taken into consideration.
2. Scheme is applicable from 1st of April 2016, base taken as 31st March 2016.
3. Only if an employer had an increase in number of employees from base date will be eligible for this benefit.
4. Required for the scheme are LIN Number of employer, Aadhar number of employee, and registration with www.pmrpy.gov.in
An attachment is provided for additional information.
Request fellow members/ seniors to put some light on the following queries of mine:
1. What will be the reimbursement frequency to the employer?
2. Some employers may manipulate the data with bringing in some fake employees, how will the PF monitor that?
3. Also, what will be the minimum tenure the employee will have to be part of the system? Are there checks in place.
From India, Mumbai
7Some pointers:
1. Freshers or employees having no PF and UAN number earlier will be taken into consideration.
2. Scheme is applicable from 1st of April 2016, base taken as 31st March 2016.
3. Only if an employer had an increase in number of employees from base date will be eligible for this benefit.
4. Required for the scheme are LIN Number of employer, Aadhar number of employee, and registration with www.pmrpy.gov.in
An attachment is provided for additional information.
Request fellow members/ seniors to put some light on the following queries of mine:
1. What will be the reimbursement frequency to the employer?
2. Some employers may manipulate the data with bringing in some fake employees, how will the PF monitor that?
3. Also, what will be the minimum tenure the employee will have to be part of the system? Are there checks in place.
From India, Mumbai
Hello Moushami
1.The PMPRY scheme covers old establishments already registered with PF and new establishments, registered with PF from 1st April 2016.
2.It covers only new employees. New employee means an employee who never worked with an organisation covered by PF and had no UAN in the past.
3. In respect of old establishments, the reference base to determine new employees for 2016-17 is 31st March 2016 and for 31st March 2017 for 2017 and 2018 and so on.
4. For new establishments registered with PF on or after 1st April year, 2016 the reference base is zero.(as they were not in existence prior to that date.)
5.Employers shall add new employees to the reference base.as of 31 st March 2016 or 31st march 2017 and so on.
5.Each establishment will be allotted a LIN (Labour Identification Number) for the purpose primary reference.
6. The government will bear the employer contribution to the extent of 8.33% while the employer has to remit 3.67% to PF. for all industries other than apparel sector. For apparel sector, the govt. even will bear the 3.67 % of employer contribution also in addition to 8.33 %.
7. This benefit will be available to employers in respect of new employees as defined above for a period of three years only if the new employee contnues with the same employer for such period.
8.the benefit is effective from August 2016.
Hope this will give some clarity.
B.Saikumar
HR & Labour Law advisor
From India, Mumbai
1.The PMPRY scheme covers old establishments already registered with PF and new establishments, registered with PF from 1st April 2016.
2.It covers only new employees. New employee means an employee who never worked with an organisation covered by PF and had no UAN in the past.
3. In respect of old establishments, the reference base to determine new employees for 2016-17 is 31st March 2016 and for 31st March 2017 for 2017 and 2018 and so on.
4. For new establishments registered with PF on or after 1st April year, 2016 the reference base is zero.(as they were not in existence prior to that date.)
5.Employers shall add new employees to the reference base.as of 31 st March 2016 or 31st march 2017 and so on.
5.Each establishment will be allotted a LIN (Labour Identification Number) for the purpose primary reference.
6. The government will bear the employer contribution to the extent of 8.33% while the employer has to remit 3.67% to PF. for all industries other than apparel sector. For apparel sector, the govt. even will bear the 3.67 % of employer contribution also in addition to 8.33 %.
7. This benefit will be available to employers in respect of new employees as defined above for a period of three years only if the new employee contnues with the same employer for such period.
8.the benefit is effective from August 2016.
Hope this will give some clarity.
B.Saikumar
HR & Labour Law advisor
From India, Mumbai
Thanks for the reply, however, my question that whether there will be a reimbursement by the government of 8.33%, if yes, then when will they do it.
From India, Mumbai
From India, Mumbai
Moushami, The procedural details will be worked out by the PF as the Scheme does not refer to it. There may be two ways 1) the Govt/PF. may directly reimburse the employer or the Govt. may directly pay the 8.33% directly to PF which may collect only 3.67% from the employer.You may await PF circular or contact the PF dept. in this regard. Other experts may throw light on this.
B.Saikumar
From India, Mumbai
B.Saikumar
From India, Mumbai
Hi All, Any update on the same. They have still no circular or notification, only press release. Thanks Moushumi
From India, Mumbai
From India, Mumbai
Hello Sir / Mam, I want to know about PMPRY scheme, HOW TO CALCULATE PF AMOUNT ? on Gross salary or basic salary + DA ? Kindly confirm.. Regards Santosh
From India, Mumbai
From India, Mumbai
Dear Moushumi B
With reference to your query, now 8.33% share would be automatically calculated while generating challan,and the same amount would be directly paid by GOI and you can see that amount is excluded in the challan amount also. i.e. total amount - excluded amount = net payable amount.
Hope your query is clear.
From India, Mumbai
With reference to your query, now 8.33% share would be automatically calculated while generating challan,and the same amount would be directly paid by GOI and you can see that amount is excluded in the challan amount also. i.e. total amount - excluded amount = net payable amount.
Hope your query is clear.
From India, Mumbai
Dear B.Saikumar Jee
Is it necessary to register all the Employees in pmpry for benifit of 8.33%. I have already 600 employee registered in Epfo,every month we are deposit epf for our employee.
Many of these employees have left work, so what is the need to register all or only active member in pmrpy?
Please Help
From India, Patna
Is it necessary to register all the Employees in pmpry for benifit of 8.33%. I have already 600 employee registered in Epfo,every month we are deposit epf for our employee.
Many of these employees have left work, so what is the need to register all or only active member in pmrpy?
Please Help
From India, Patna
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls