1.1. THE PAYMENT 1.1. THE PAYMENT 1.2.
THE PAYMENT
OF BONUS ACT, OF BONUS ACT, OF
1965 1965 1965
1.1.1. Introduction
Bonus is a concept referring to ex
gratia payment or bounty or a
payment by way of gift. Normally the
term bonus implies an extra payment
over and above what is due to the
person concerned given as a
voluntary gift. Bonus also is one
method of sharing of profits with the
workers.
However, with enactment of the
Payment of Bonus Act, 1965 the
concept of bonus has undergone
considerable change. The obligation
to pay a minimum bonus irrespective
of the financial results has turned
bonus into an additional statutory
payment by an employer to his
employees.
1.3.4.
1.1.2. Objectives of the Act
Act
Objectives of the Act are as follows:
1) To impose statutory liability
upon an employer of every
establishment covered by the Act
to pay bonus to employees in the
establishment;
2) To define the principle of
payment of bonus according to
the prescribed formula;
3) To provide for payment of
minimum and maximum bonus
and linking the payment of bonus
with the scheme of ‘set-off and
set-on’;
4) To provide machinery for
enforcement of the liability for
payment of bonus. 1.3.5. Sum Deductible from
Gross Profits [Section 6]
1.1.3. Sum Deductible from The following elements listed in from Gross Profits [Section
Gross Profits [Section 6] Section 6 of the Act must be 6]
In order to arrive at the available
surplus the following items referred
to in Section 6 of the Act have to be
deducted from the gross profits as
prior charges, namely:
1) Amount of depreciation
admissible under the Income Tax
Act;
2) Amount of development rebate
or investment allowance or
BONUS ACT,
1.3.3. Introduction 1.2.1. Introduction
Bonus is a term that refers to an ex An ex gratia payment, a bounty, or a
gratia payment, a bounty, or a gift gift payment defines the concept of
payment. Typically, the term bonus bonus. Generally, an additional
refers to an additional payment made payment made as a present to the
as a present to the concerned person. concerned person is defined as bonus.
It is one of the methods of sharing It is one of the methods of sharing
profit with the workers. profit with the employees or workers.
The concept of bonus has changed The concept of bonus has changed
significantly after the enactment of significantly after the enactment of
Payment of Bonus Act, 1965. The Payment of Bonus Act, 1965. The
requirement to pay a minimum bonus requirement to pay a minimum bonus
regardless of profit has transformed regardless of profit has transformed
the bonus into a statutory payment the bonus into a statutory payment
made by an employer to his made by an employer to his
employees. employees.
Objectives of the 1.2.2. Objectives of the
Act
Following are the objectives of the Following are the objectives of the
Act: Act:
1) It aims at imposing statutory 1) It aims at imposing statutory
liability upon the employers to liability upon the employers to
pay bonus to their employees. pay bonus to their employees.
These employers are the These employers are the
employers of establishment employers of establishment
covered under the Act. covered under the Act.
2) It aims at establishing a method 2) The Act aims at establishing a
for calculating bonuses. method for calculating bonuses.
3) It aims at guiding employers 3) It aims at guiding employers
regarding the maximum and regarding the maximum and
minimum bonus to be given. minimum bonus to be given.
4) It aims at providing a mechanism 4) It aims at providing a mechanism
for enforcing the bonus payment for enforcing the bonus payment
liability. liability.
1.2.3. Sum Deductible
subtracted from gross revenues as The following elements listed in
prior charges in order to arrive at the
Section 6 of the Act must be
available surplus: subtracted from gross revenues as
prior charges in order to arrive at the
1) Amount of depreciation available surplus:
admissible under the Income Tax
Act; 1) Amount of depreciation
2) Amount of development rebate or admissible under the Income Tax
investment allowance or Act;
development allowance 2) Amount of development rebate or
 development allowance admissible under the Act; investment allowance or
admissible under the Act; 3) Direct taxes payable by the development allowance
3) Direct taxes payable by the employer for the accounting year; admissible under the Act;
employer for the accounting and 3) Direct taxes payable by the
year; and 4) Such further sums as are employer for the accounting year;
4) Such further sums as are specified in respect of the and
specified in respect of the employer in the Third Schedule. 4) Such further sums as are specified
employer in the Third Schedule. in respect of the employer in the
The third schedule of the Act Third Schedule.
Different rates of return for specifies different rates of return for
preference capital, equity capital, equity capital, preference capital,
reserves etc. are prescribed in the reserves, etc., for companies, banking The third schedule of the Act specifies
third schedule to the Act for different companies, cooperative societies, and different rates of return for equity
categories of establishments for other types of employers. capital, preference capital, reserves,
example, companies, banking etc., for companies, banking
companies, cooperative societies and companies, cooperative societies, and
other categories of employers. other types of employers.
1.3.6. Amount of Bonus
1.1.4. Amount of Bonus In most cases, the full profit made by
Technically the entire allocable the company should be used to
surplus is available for distribution of distribute bonuses. But, regardless of 1.2.4. Amount of Bonus
bonus. However, irrespective of the the amount of surplus, the Act In most cases, the full profit made by
quantum of allocable surplus the Act prescribes the maximum and the company should be used to
statutorily prescribes the minimum minimum amount payable to the distribute bonuses. But, regardless of
and maximum amount of bonus employees as bonus. the amount of surplus, the Act
payable to the employees. prescribes the maximum and
1.3.7. Set-On and Set-Off minimum amount payable to the
employees as bonus.
1.1.5. Set-On and Set-Off of Allocable Surplus
of Allocable Surplus [Section 15]
[Section 15] The Payment of Bonus Act, 1965 1.2.5. Set-On and Set-Off
The Payment of Bonus Act, 1965 envisages ‘set-on’ and ‘set-off’
of Allocable Surplus
envisages a scheme prescribing scheme in the preceding year.
minimum and maximum rates of [Section 15]
bonus together with the scheme of
‘set-on’ and ‘set-off’ in the previous The Payment of Bonus Act, 1965
year. 1.4. MATERNITY envisages ‘set-on’ and ‘set-off’
scheme in the preceding year.
1.2. MATERNITY BENEFIT ACT, 1961
BENEFIT ACT, 1961 1.4.1. Introduction
During the weeks leading up to and 1.3. MATERNITY
1.2.1. Introduction following the delivery of a child, a
BENEFIT ACT, 1961
Maternity disables a woman worker woman worker is unable to work in
from undertaking any work during any capacity. It is essential that the
the few weeks immediately preceding mother and child’s health be 1.3.1. Introduction
and following child birth. In order to protected during this time, thus she is During the weeks leading up to and
protect the health of the mother and not required to work. When the wage following the delivery of a child, a
the child, it is necessary that she be labour system was established in woman worker is unable to work in
freed from being engaged in work industrial enterprises, many any capacity. It is essential that the
during this period. With the employers started terminating the mother and child’s health be protected
emergence of the system of wage services of pregnant women workers during this time, thus she is not
labour in industrial undertakings, with a view that these women’s are required to work. When the wage
many employers tended to terminate unable to perform their duties with labour system was established in
the services of the women workers full capacity. Thus, as a result, many industrial enterprises, many employers
when they found that maternity women employees were forced to started terminating the services of
interfered with the performance of take unpaid leave in order to keep pregnant women workers with a view
normal duties by them. Many women their job, whereas, others had to put that these women’s are unable to
workers, therefore, had to go on leave forth extra effort to maintain their perform their duties with full capacity.
without pay during this period in productivity throughout pregnancy. Thus, as a result, many women
order to retain their employment; These extra efforts were harmful for employees were forced to take unpaid
many others had to bear a heavy both the mother and the child’s leave in order to keep their job,
strain to keep their efficiency during health. whereas, others had to put forth extra
the periods of pregnancy, which was effort to maintain their productivity
injurious to the health of both the 1.4.2. Importance of the throughout pregnancy. These extra
mother and the child. efforts were harmful for both the
Act mother and the child’s health.
Following are the importance of
1.2.2. Importance of the Maternity Benefits Act, 1961:
Act 1.3.2. Importance of the
The main importance of the 1) It aids in regulating women’s Act
Maternity Benefits Act, 1961 are as employment in particular
follows: enterprises for certain pre- and
1) It helps to regulate the post-childbirth periods. Following are the importance of
employment of women 2) It allows for the payment of Maternity Benefits Act, 1961:
employees in certain maternity benefits to women 1) It aids in regulating women’s
establishments for certain workers at the rate of average employment in particular
specified periods before and after daily wages computed on the enterprises for certain pre- and
child birth. basis of the wages payable to her post-childbirth periods.
for the days she worked during 2) It allows for the payment of
2) It provides for the payment of
the three calendar months maternity benefits to women
maternity benefits to women immediately before the date she workers at the rate of average
workers at the rate of average was absent due to maternity. daily wages computed on the
daily wages calculated on the 3) A women facing miscarriage, basis of the wages payable to her
basis of the wages payable to her premature birth, or illness arising for the days she worked during the
for the days on which she has out of pregnancy is provided three calendar months
certain benefits under this Act. immediately before the date she
worked during the three calendar
was absent due to maternity.
months immediately preceding 3) A women facing miscarriage,
the date from which she absented premature birth, or illness arising
herself on account of maternity. out of pregnancy is provided
certain benefits under this Act.
3) It provides for certain benefits in
4) It defends the dignity of
case of miscarriage, premature motherhood and the dignity of a
birth, or illness arising out of new person’s birth by ensuring the
pregnancy. woman’s and her child’s complete
4) It protects the dignity of and healthy maintenance
motherhood and the dignity of a throughout this crucial period
new person’s birth by providing while she is not working.
for full and healthy maintenance 1.4.3. Right to Payment
of the woman and her child at of Maternity Benefits
this important time when she is
not working. [Section 5]
Every woman employee of an
1.2.3. Right to Payment establishment covered by this Act is
entitled to receive maternity benefit
of Maternity Benefits from her employer at the rate of the
1.3.3. Right to Payment of
[Section 5] average daily wage for the period of
Every woman employee of an her actual absence from work
Maternity Benefits [Section
establishment to which this Act immediately preceding the day of her 5]
applies, is entitled to and her delivery, the actual day of her
employer is liable for the payment delivery, and any period immediately Every woman employee of an
of maternity benefit at the rate of following that day. establishment covered by this Act is
the average daily wage for the entitled to receive maternity benefit
period of her actual absence from from her employer at the rate of the
work immediately preceding the average daily wage for the period of
day of her delivery, the actual day Conditions for Payment of her actual absence from work
of her delivery and any period Maternity Benefit immediately preceding the day of her
immediately following that day. Following are the condition for delivery, the actual day of her
payment of maternity benefits: delivery, and any period immediately
Conditions for Payment of 1) Work for not less than 80 following that day.
Maternity Benefit days to have been Put in: No
Conditions for payment of maternity women shall be entitled to
benefit are as follows: maternity benefit unless she has
1) Work for not less than 80 actually worked in an Conditions for Payment of
days to have been Put in: No establishment of the employer Maternity Benefit
women shall be entitled to from whom she claim maternity Following are the condition for
maternity benefit unless she has benefit for a period of not less payment of maternity benefits:
actually worked in an than eighty days in the twelve 1) Work for not less than 80 days
establishment of the employer months immediately preceding to have been Put in: No women
from whom she claim the date of her expected delivery. shall be entitled to maternity
maternity benefit for a period of 2) Maternity Benefit for a benefit unless she has actually
not less than 80 days in the 12 Maximum Period for 12 worked in an establishment of the
months immediately preceding Weeks: 12 weeks is the employer from whom she claim
the date of her expected maximum period for which the maternity benefit for a period of
delivery. woman is entitled to maternity not less than eighty days in the
benefits, with no more than 6 twelve months immediately
2) Maternity Benefit for a
weeks preceding the expected preceding the date of her expected
Maximum Period for 12
delivery date. delivery.
Weeks: The maximum period for
3) Death: If a woman dies during 2) Maternity Benefit for a
which the woman shall be
the 12-week period, the maternity Maximum Period for 12 Weeks:
entitled to maternity benefit shall
benefit will only be paid for the 12 weeks is the maximum period
be 12 weeks of which not more
days up to and including the day for which the woman is entitled to
than 6 weeks shall precede the
of her death. The employer is maternity benefits, with no more
date of her expected delivery.
responsible for paying maternity than 6 weeks preceding the
3) Death: Where woman dies benefits for the entire period if a expected delivery date.
during the period of 12 weeks, woman gives birth to a child and
the maternity benefit shall be then dies during giving birth or 3) Death: If a woman dies during the
payable only for the days up to during the period immediately 12-week period, the maternity
and including the day of her following her delivery for which benefit will only be paid for the
death. Where the woman delivers she is entitled to maternity days up to and including the day
a child and then dies during her benefits, leaving the child behind. of her death. The employer is
delivery or during the period The employer is also liable to pay responsible for paying maternity
immediately following the date maternity benefits for the days up benefits for the entire period if a
of her delivery for which she is to and including the day of the woman gives birth to a child and
entitled for the maternity benefit, child’ s death, if the child dies then dies during giving birth or
leaving behind the child, the within the said period. during the period immediately
employer shall be liable for following her delivery for which
payment of maternity benefit for she is entitled to maternity
the entire period. If the child also benefits, leaving the child behind.
dies during the said period, the The employer is also liable to pay
employer shall be liable for the maternity benefits for the days up
payment of maternity benefit for 1.4.3.1. Payment of Maternity to and including the day of the
the days up to and including the Benefits in Certain Cases child’ s death, if the child dies
date of the death of the child. [Section 5-B] within the said period.
This section was added to the
Maternity Benefit (Amendment) Act,
1.2.3.1. Payment of Maternity 1976, stating that every woman
Benefits in Certain Cases employee fulfil following conditions
[Section 5-B] are applicable for receiving maternity
This section was added to the Benefit under the Act:
Maternity Benefit (Amendment) Act, 1) Women employee who is 1.3.3.1. Payment of Maternity
1976 providing that the maternity employed in a factory or other Benefits in Certain Cases
benefit as provided in the Maternity enterprise to which the State [Section 5-B]
Benefit Act shall be payable to every Insurance Act, 1948 applies but This section was added to the
woman employee: is not covered by the Act. Maternity Benefit (Amendment) Act,
1) Who is employed in a factory or 2) Women employee whose wage is 1976, stating that every woman
other establishment to which more than 1600 (excluding wages employee fulfil following conditions
the State Insurance Act, 1948 for overtime work). are applicable for receiving maternity
applies but she is not covered 3) Women employee who had Benefit under the Act:
under the Act; worked in the factory or 1) Women employee who is
2) Her wages (excluding wages for establishment for 80 days in the employed in a factory or other
 overtime work) exceed 1600.
She had worked in the factory or
establishment for 80 days in the 12
months immediately preceding the
1.4.4. Payment
date of expected delivery.
Maternity Benefit in Case
1.2.4. Payment for of Death of a Woman
Maternity Benefit in Case [Section 7]
If a woman who is entitled to
of Death of a Woman maternity benefit or any other amount
[Section 7] under this Act dies before receiving
If a woman entitled to maternity
benefit or any other amount under
this Act, dies before receiving such
maternity benefit or amount, it shall
be paid to her nominee as indicated
in the notice given by her under
section 6 of the Act and in case there
is no such nominee it shall be paid to
her legal representative.
1.2.5. Maternity Benefit
(Amendment) Act, 2017
The Maternity Benefit (Amendment)
Bill 2016 (the “Amendment Bill”), an
amendment to the Maternity
Benefit Act, 1961 (“Act”), was
passed in Lok Sabha on March 09,
2017, in Rajya Sabha on August 11,
2016 and received an assent from
President of India on March 27,2017.
The provisions of The Maternity
Benefit (Amendment) Act, 2017 (MB
Amendment Act) is effective from
April 01, 2017. However, provision
on crèche facility (Section 11 A)
shall be effective from July 01, 2017
Key highlights of the Amendment
1) Increase in Maternity Benefit:
The period of paid maternity
leave (“Maternity Benefit”) that a
woman employee is entitled to
has been increased to 26 (twenty
six) weeks. Further, the Act
previously allowed pregnant
women to avail Maternity
Benefit for only 6 (six) weeks
prior to the date of expected
delivery. Now, this period is
increased to 8 (eight) weeks.
1Maternity benefit of 26 weeks
can be extended to women who
12 months immediately before enterprise to which the State
the expected date of delivery. Insurance Act, 1948 applies but is
not covered by the Act.
2) Women employee whose wage is
for more than 1600 (excluding wages
for overtime work).
3) Women employee who had
worked in the factory or
establishment for 80 days in the
12 months immediately before the
expected date of delivery.
it, the maternity benefit or amount
will be paid to her nominee as
specified in the notice she gave under 1.3.4. Payment for
section 6 of the Act, or to her legal Maternity Benefit in Case of
representative if there is no nominee.
Death of a Woman [Section
7]
1.4.5. Maternity Benefit If a woman who is entitled to
maternity benefit or any other amount
(Amendment) Act, 2017 under this Act dies before receiving it,
The Maternity Benefit (Amendment)
the maternity benefit or amount will
Bill 2016 (the Amendment Bill) was
be paid to her nominee as specified in
passed in the Lok Sabha on March 9,
the notice she gave under section 6 of
2017, in the Rajya Sabha on August
the Act, or to her legal representative
11, 2016, and by the President of
if there is no nominee.
India on March 27, 2017.
From April 01, 2017 the provisions
laid down under the Maternity
Benefit (Amendment) Act, 2017
came into force, whereas provisions 1.3.5. Maternity Benefit
related to creche facilities came into (Amendment) Act, 2017
force from July 01, 2017. The Maternity Benefit (Amendment)
Bill 2016 (the Amendment Bill) was
passed in the Lok Sabha on March 9,
Key highlights of the Amendment 2017, in the Rajya Sabha on August
Following are the key amendments of 11, 2016, and by the President of India
the Act: on March 27, 2017.
1) Increase in Maternity Benefit:
Paid maternity leave (“Maternity From April 01, 2017 the provisions
Benefit”) available to female laid down under the Maternity Benefit
employees has been increased to (Amendment) Act, 2017 came into
twenty-six weeks. Furthermore, force, whereas provisions related to
the Act formerly authorised crèche facilities came into force from
pregnant women to avail July 01, 2017.
Maternity Benefit for six weeks
before their date of expected
delivery. After the amendment
this term has now been extended Key highlights of the Amendment
to eight weeks. Women who are Following are the key amendments of
already on maternity leave at the the Act:
time of the enforcement of this 1) Increase in Maternity Benefit:
Amendment’s may be eligible for Paid maternity leave (“Maternity
a 26-week maternity benefit. Benefit”) available to female
employees has been increased to
2) No Increased Benefit for Third twenty-six weeks. Furthermore,
Child: Only for the first two the Act formerly authorised
children these benefits are pregnant women to avail
 are already under maternity leave available. According to the Maternity Benefit for six weeks
at the time of enforcement of this amendment, a mother with two or before their date of expected
Amendment. more surviving children is only delivery. After the amendment
eligible to twelve weeks of this term has now been extended
2) No Increased Benefit for Third Maternity Benefit, in which no to eight weeks. Women who are
Child: The increased Maternity more than six weeks may be already on maternity leave at the
Benefit is only available for the availed prior to the expected time of the enforcement of this
first two children. The delivery date. Amendment’s may be eligible for
Amendment provides that a a 26-week maternity benefit.
woman having two or more
surviving children shall only be 3) Adoption/Surrogacy: A woman 2) No Increased Benefit for Third
entitled to 12 (twelve) weeks of adopting a child under the age of Child: Only for the first two
Maternity Benefit of which not three months, or a children, women can avail the
more than 6 (six) shall be taken commissioning mother will be increased Maternity Benefit.
prior to the date of the expected eligible for Maternity Benefit for According to the amendment, a
delivery. a period of twelve weeks from mother with two or more
the date the child is handed over surviving children is only eligible
3) Adoption/Surrogacy: A woman to both the mothers. to twelve weeks of Maternity
who adopts a child below the age Benefit, in which no more than six
of 3 (three) months, or a weeks may be availed prior to the
commissioning mother (means a expected delivery date.
biological mother, who uses her
egg to create an embryo 3) Adoption/Surrogacy: A woman
implanted in any other woman), 4) Creche Facility: Facility of adopting a child under the age of
will be entitled to Maternity creche is necessary for every three months, or a commissioning
Benefit for a period of 12 establishment employing fifty or mother will be eligible for
(twelve) weeks from the date the more employees. This creche Maternity Benefit for a period of
child is handed over to the should be established within the twelve weeks from the date the
adopting mother or the prescribed distance from the child is handed over to the
commissioning mother. establishment. The woman will adopting or commissioning
also be allowed four visits to the mother.
4) Creche Facility: Every creche every day, including the
establishment having 50 (fifty) or rest period she is entitled to.
more employees are required to
have a mandatory creche facility 5) Work from Home: Post the
(within the prescribed distance period of maternity benefit,
from the establishment), either employer may enable a woman to 4) Crèche Facility: Facility of
separately or along with other work from home, if her work crèche is necessary for every
common facilities. The woman is allows it. However it must be a establishment employing fifty or
also to be allowed 4 (four) visits mutual decision. more employees. This crèche
a day to the creche, which will should be established within the
include the interval for rest 6) Prior Intimation: It is the duty prescribed distance from the
allowed to her. of every establishment to provide establishment. The woman will
women with information about also be allowed four visits to the
5) Work from Home: If the nature every benefit available under the crèche every day, including the
of work assigned to a woman is Act at the time of their initial rest period she is entitled to.
such that she can work from appointment.
home, an employer may allow 5) Work from Home: Post the
her to work from home post the period of maternity benefit,
period of Maternity Benefit. The employer may enable a woman to
conditions for working from work from home, if her work
home may be mutually agreed allows it. However it must be a
between the employer and the mutual decision.
woman.
1.5. 6) Prior Intimation: It is the duty of
6) Prior Intimation: Every EMPLOYEES’ every establishment to provide
establishment will be required to women with information about
provide woman at the time of her PROVIDENT FUND every benefit available under the
initial appointment, information
about every benefit available
AND Act at the time of their initial
appointment.
under the Act.
 (MISCELLANEOUS
1.3. EMPLOYEES’
PROVISIONS) ACT,
PROVIDENT FUND
1952
AND
(MISCELLANEOUS 1.5.1. Introduction
Provident fund is a type of 1.4. EMPLOYEES’
PROVISIONS) ACT, government mandated retirement
savings scheme. This scheme is used PROVIDENT FUND
1952 in India, Singapore, and other
emerging countries. Employer-
AND
1.3.1. Introduction provided pension funds and (MISCELLANEOUS
A provident fund is a government- government mandated provident fund
managed, mandatory has some similar characteristics. PROVISIONS) ACT,
retirement savings scheme used in
India, Singapore, and other
1952
1.5.2. Employees
developing nations. These funds also
share some characteristics with
Provident Funds 1.4.1. Introduction
pension funds provided by (Amendment) Scheme, Provident fund is a type of
employers. 2020 government mandated retirement
Central Government made following savings scheme. This scheme is used
1.3.2. Employees amendments in the Employees’ in India, Singapore, and other
Provident Funds and Miscellaneous emerging countries. Employer-
Provident Funds provided pension funds and
Provisions Act, 1952:
(Amendment) Scheme, 1) Taxability: The interest income government mandated provident fund
2020 earned on employee contributions has some similar characteristics.
https://www.relakhs.com/new-epf- to the EPF was totally tax-free
rules-2021/ until FY 2020-21. Interest on 1.4.2. Employees
In exercise of the powers conferred EPF contributions beyond Rs 2.5 Provident Funds
by section 5 read with sub-section (1) lakh is taxed.
of section 7 of the Employees’ (Amendment) Scheme, 2020
Provident Funds and Miscellaneous Central Government made following
Provisions Act, 1952 (19 of 1952), amendments in the Employees’
the Central Government hereby Provident Funds and Miscellaneous
makes the following Scheme further Provisions Act, 1952:
to amend the Employees’ Provident 1) Taxability: The interest income
Funds Scheme, 1952, namely: earned on employee contributions
to the EPF was totally tax-free
1) Taxability: Until FY 2020-21, until FY 2020-21. Interest on EPF
the interest income earned on 2) EPFO Aadhar Verification contributions beyond Rs 2.5 lakh
contributions to EPF made by the mandatory w.e.f. 1st June, is taxed.
employee was completely tax- 2021: The EPFO has informed
free. EPF Contributions above Rs all employers (companies) that
2.5 lakh, Interest is taxable. from June 1 it is mandatory to
link their PF account and UAN to
2) EPFO Aadhar Verification Aadhaar for filing their
mandatory w.e.f. 1st June, ECRs (Electronic Challan cum
2021: The EPFO has instructed Return). For all EPFO
all the beneficiaries, the deadline to seed
Employers (Company) that from the Aadhaar number with UAN
June 1, if PF account is not has been extended from June 1, 2) EPFO Aadhar Verification
linked to Aadhaar or UAN is not 2021 to September 1, 2021. mandatory w.e.f. 1st June, 2021:
Aadhaar verified, then their Employees will be able to see The EPFO has informed all
ECRs (Electronic Challan cum their part of contributions to the employers (companies) that from
Return) will not be filed. The last PF account, but they will not be June 1 it is mandatory to link their
date to seed the Aadhaar number able to receive the employer’s PF account and UAN to Aadhaar
with UAN is extended from June share. In addition, EPFO services for filing their ECRs (Electronic
1, 2021, to September 1, 2021, will not be visible to PF account Challan cum Return). For all
for all EPFO beneficiaries. This holders who do not have their EPFO beneficiaries, the deadline
to seed the Aadhaar number with
 means, though employees can see accounts linked to Aadhaar. UAN has been extended from
their own PF account June 1, 2021 to September 1,
contribution, they will not be 3) EPFO hikes death Insurance 2021. Employees will be able to
able to get the employer’s share. under EDLI Scheme to Rs 7 see their part of contributions to
Also, if the accounts of PF lakh: The central government the PF account, but they will not
account holders are not linked has also increased the insurance be able to receive the employer’s
with Aadhaar, then they will not claim amount under the EDLI share. In addition, EPFO services
be able to use the services of (Employees Deposit-Linked will not be visible to PF account
EPFO. Insurance Scheme) to Rs 7 lakh. holders who do not have their
accounts linked to Aadhaar.
3) EPFO hikes death Insurance The Employees Provident Fund
under EDLI Scheme to Rs 7 Organisation (EPFO) announced 3) EPFO hikes death Insurance
lakh: Another major amendment in a gazette notification that the under EDLI Scheme to Rs 7
to the EPF act is that the central minimum and maximum death lakh: The central government has
government has hiked the insurance amounts have been also increased the insurance claim
insurance claim amount under increased to Rs 2.5 lakh and Rs 7 amount under the EDLI
the EDLI scheme to Rs 7 lakh. lakh, respectively, from Rs 2 lakh (Employees Deposit-Linked
and Rs 6 lakh. Insurance Scheme) to Rs 7 lakh.
In a gazette notification, the
Employees’ Provident Fund EPFO provides a second covid- The Employees Provident Fund
Organisation (EPFO) said the 19 advance to all of its members. Organisation (EPFO) announced
minimum death insurance has Members can withdraw up to in a gazette notification that the
been increased to Rs 2.5 lakh and three months basic salary (basic minimum and maximum death
the maximum to Rs 7 lakh, from pay + dearness allowance), or up insurance amounts have been
the earlier limits of Rs 2 lakh to 75 percent of the balance in increased from Rs 2 lakh and Rs 6
and Rs 6 lakh, respectively. their provident fund account, lakh to Rs 2.5 lakh and Rs 7 lakh,
whichever is less. Till now over respectively.
While the lower limit of Rs 2.5 76.31 lakh COVID-19 advance
lakh is coming with retrospective claims has been settled by EPFO, EPFO provides a second covid-19
effect (w.e.f. 15th Feb, 2020), the which amounts to a total of Rs advance to all of its members.
upper limit has a prospective 18,698.15 crore. Members can withdraw up to
effect. EPFO allows all its three months basic salary (basic
members to avail second covid- pay + dearness allowance), or up
19 advance (partial withdrawal). to 75 percent of the balance in
The members are allowed to their provident fund account,
withdraw three months basic whichever is less. Till now over
wages (basic pay + dearness 76.31 lakh COVID-19 advance
allowance) or up to 75% of claims has been settled by EPFO,
amount standing to their credit in which amounts to a total of Rs
their provident fund account, 18,698.15 crore.
whichever is less.

The EPFO has settled more than

76.31 lakh COVID-19 advance
claims thereby disbursing a total
of Rs 18,698.15 crore as on date.