The members of our Association appreciate the gesture of the government towards achieving of goal to Ease of Doing Business in talking historic decision by reducing rate of ESI contributions. However the time has come that the rate of contribution of provident fund be reduced substantially. While considering and average wage of Rs.8000 per month, the lowest paid employee will have to shell out Rs.960 per month which is substantial and unaffordable since his/her immediate necessities/requirements are more demanding. with sweeping changed in lifestyles priorities have also changed too.

How an employee spends, how he saves his money as earned by him, should be left to him. The employer's share of contribution also be paid to the employee every month. Thought casting heavy financial liability by an employer towards its matching share of contribution, no employee apperciates this invisible gesture. This  aspect can be noticed that while attracting the candidates for employment or for retention of employees, the employers are compelled to mention this amount od EPF contribution as Cost to Company (CTC) Despite this reference in CTC, an employee is always concerned about his take home salary since deferred amount is not at all significant.

If the Scheme is not abolished it would be appropriate that insead of confiscating the hard earned wages the membership of the scheme should be optional for the employees.

An appeal was filed by the appellant before the Employees' Provident Fund Appellate Tribuna, challenging the order dated 18.12.2012 passed by the EPF Authority under sections 7- A and 17- Q of the Act.

Brief Facts: Appellant's version is that it has been following the provisions of the Act since the day of allotment of PF Code. Gross salary of the employees, as per pay slips provided to them consists of basic wages house rent allowance etc. The appellant was depositing EPF contributions (employer's and employee's shares) in their respective accounts on the basic of basic wages. Version of the EPF Authority is that the appellant was not only deducting EPF contribution i.e employee,s share only from the basic wages but on the allowances and even in some cases at the rate more than the prescribed rate of EPF contribution but was remitting the EPF contributions in the accunts respective account of the employees at the prescribed rates thereby misappropriating a considerable amount for his own hains.

Reasons and Decision: The EPF Authority observed that undisputedly the employer has to pay EPF dues at the prescribed rate on the basis of basis wage and the employer has no liability to pay EPF dues on Allowances Appellant is receiving PF contribution on full minimum wages without splitting by making deductions from the wages of the emloyees as per agreement between appellant  and employees where as deposting the EPF contributios only on the basic of basic wages and allowances. The Act of the appellant reducing its statutory liability amounts to mislead its clients into paying a higher amount to wards EPF contributions on the total minimum wages thereby depriving the employees from their welfare. The doctrine of audi alteram patram has three basic essentials. Firstly a person against whom an order is required to be passed must be granted an opportunity of being heard, to provide a fair and transparent procedure and lastly, the authority concerned must apply its mind and dispose the matter by a reasoned or speaking order. Impugened order has been passed by following due procedure giving due opportunities to the appellant by the EPF Authority. Hence, appeal stands dismissed.

Yes. A retired insured person can avail medical benefits on his/her superannuation for himself/herself and his or her spouce subject to the condition that he/she should deposit a sum of Rs. 120 per year in Advance with a certificate from the employer in form (available from local office) that he/she had been employed by him.