6 Sep 2019

Employees’ Provident Funds & Miscellaneous Provisions (Amendment) Bill, 20192 min read

Source: Monthly Policy Review of PRS

The Ministry of Labour and Employment released a draft of the Employees’ Provident Funds & Miscellaneous Provisions (Amendment) Bill, 2019. The Bill amends the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. 

Key Amendments


  • Change in the definition of basic wages: The Bill proposes to change the definition of ‘basic wages’ in the Act to conform with the Code on Wages, 2019, passed by Parliament.  In the Act, wages include all compensation paid to an employee barring; (i) food concessions, (ii) dearness allowance, and (iii) presents made by the employer. The Bill changes the definition of wages to include basic pay, dearness allowance and retaining allowance.


    •  However, the bill does not include; (i) bonuses, (ii) housing, (iii) pension contributions made by the employer, (iv) conveyance allowance, (v) overtime allowance, and (vi) commission, amongst others
    • The Bill adds the stipulation that if the total amount of payments not included within the wage exceeds 50% of all remuneration made by the employer, it will be included in the wages.


  • Limitation for initiation of inquiries: Currently, the Act does not provide for a limitation for initiation of inquiries into the applicability of the Act to an establishment and to determine the amount due from any employer under the Act. The Bill introduces a limitation period of 5 years to initiate an inquiry. Further, it suggests a time period of two years within which an inquiry must be concluded


  • Increase of fines: The Bill proposes the increase of certain fines by ten times. For example, the fine for repeat offences is currently Rs 25,000. The Bill proposes to increase this to 2.5 lakh rupees. Further, the Bill suggests that offences should be made compoundable, including offences by companies


  • Changes in the rate of contribution: Currently, the employee and employer contribution to the Employees’ Provident Fund is 10%. The Bill changes the rate of contribution from 10% to 12%. Further, the appropriate government may prescribe different rates of contribution for a specific time period and class of employee earning below a certain threshold of monthly income. No change in the employers’ contribution has been proposed.
  • Changes related to National Pension System: The Bill proposes that an Employees’ Provident Fund (EPF) subscriber may opt for the National Pension System (NPS) in lieu of benefits under the Act. (NPS refers to a voluntary contributory pension scheme regulated by the Pension Fund Regulatory and Development Authority). Further, the Bill proposes that an NPS subscriber may opt to return to EPF at any time. 


  • Grant of exemption: The Bill amends the Act to allow for a grant of exemption to establishments that apply for an exemption and meet the criteria prescribed by the appropriate authority.

35 Responses

  1. I would like to express my thanks to the writer just for rescuing me from this type of issue. Just after scouting through the internet and finding techniques which were not productive, I believed my life was well over. Being alive without the presence of solutions to the difficulties you have fixed through the short post is a serious case, and the ones that might have badly damaged my career if I hadn’t noticed your web blog. Your main understanding and kindness in dealing with all areas was precious. I’m not sure what I would have done if I hadn’t discovered such a solution like this. I am able to at this moment relish my future. Thank you so much for this reliable and effective help. I won’t be reluctant to endorse your web page to any individual who desires support about this subject.

  2. I have been browsing online more than three hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all site owners and bloggers made good content as you did, the net will be much more useful than ever before.

  3. I am commonly to blogging and also i really appreciate your web content. The write-up has really peaks my passion. I am going to bookmark your website and also maintain checking for brand-new info.

  4. Thank you, I have just been searching for information about this subject for ages and yours is the best I’ve came upon so far. However, what concerning the bottom line? Are you sure in regards to the source?

  5. GEM-CAR auto repair shop management software is arguably the most comprehensive software of its kind currently available. Lauded for its easy to use modules including CRM, digital inspection and electronic punch clock: it provides the repair shop operator with a complete system to run the business. GEM-CAR puts the shop operator firmly in the driver’s seat. And if you are a fleet operator look for GEM-FLEET our fleet management software.

  6. magnificent post, very informative. I’m wondering why the opposite experts of this sector do not realize this. You should continue your writing. I’m confident, you have a huge readers’ base already!

  7. Online jewelry boutique specializing in custom gold and silver pieces. For the hippy hearted fashion lover. Known for its custom lotus flower hoop earrings and large collection of hoop earrings. Customers enjoy the classic and unique versatile everyday jewelry designs. Glamour hippy began is also known for its dainty gold jewelry pieces. Bohemian chic styles with modern fashion flare. Great prices and affordable. Everyday pieces to statement piece designs for special occasions. Glamour hippy is inspired by diverse world culture and it reflects into the ever changing designs. Its customer enjoys unique pieces and comfort in style. Glamour hippy wants to be a part of its customers wardrobe for many years and part of great memories where ever the customer takes their jewelry pieces. Glamour hippy is glamour and hippy all in one. Shiny pretty pieces, Unique, Glamorous, boho chic, one of a kind, dainty, but statement worthy.

  8. I will immediately take hold of your rss feed as I can not in finding your email subscription hyperlink or e-newsletter service. Do you have any? Kindly let me understand in order that I may just subscribe. Thanks.

  9. An outstanding share, I simply offered this onto a colleague that was doing a little analysis on this. As well as he actually bought me breakfast because I discovered it for him. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to review this, I feel highly concerning it and enjoy learning more on this topic. If possible, as you become knowledge, would certainly you mind upgrading your blog with even more information? It is highly useful for me. Large thumb up for this article!

  10. Natural Releaf CBD | New York CBD Store with locations in Murray Hill, NY | Upper East Side, NY | White Plains, NY Serving New York City, NY and Westchester, NY High Quality CBD Products With Lab Test

  11. After research a few of the article on your website currently, as well as I really like your means of blogging. I bookmarked it to my book marking internet site listing and also will certainly be checking back quickly. Pls check out my website as well and let me understand what you believe.

  12. David-Home Northeast is your premier source for all of your Real Estate investing needs. We provide a variety of solutions for sellers looking to sell fast and investors looking to grow their real estate investment portfolios for better returns. At David-Home Northeast, we are dedicated to improving and redeveloping the areas that we operate in. We specialize in helping sellers of distressed properties (single and multi-family homes, commercial, retail, bank REOs, etc.) find buyers looking to invest. Let us put our network of cash home buyers and private money lenders to work for you so you can say “David” to that old unwanted property.

  13. Aw, this was a truly great message. In suggestion I would like to place in composing such as this additionally? requiring time as well as actual effort to make an excellent post? but what can I state? I hesitate alot and never seem to obtain something done.

  14. I just want to say I am newbie to weblog and seriously loved this web blog. Very likely I’m want to bookmark your blog post . You absolutely come with outstanding well written articles. Cheers for revealing your web-site.

  15. I just want to say I am just beginner to blogging and certainly enjoyed your blog site. Almost certainly I’m likely to bookmark your site . You certainly have beneficial articles and reviews. Thanks a lot for sharing with us your web page.

Leave a Reply

Pin It on Pinterest

Share This