Fixed Medical Allowance (FMA) from Rs.600/- p.m. to Rs.1200/- p.m. for serving and retired employees of the EPFO - reg.

EMPLOYEES' PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT, GOVT.OF INDIA
HEAD QUARTERS
Bhavishya Nidhi Bhawan
14-BHIKAJI CAMA PLACE, NEW DELHI - 110066
www.efpindia.gov.in : www.epfindia.nic.in

File No. HRM-V/12(1)2003/FMA/Vol-II

Dated: 11 Jan 2010

To
All Addl. Central P.F. Commissioners (Zones)
Director NATRSS
All Regional P.F. Commissioner (I) In-Charge of the Regions,
All Officers in-Charge(ZTIs)
RPFC(ASD) Head Office
RPFC(NDC)

Subject: Enhancement in the rate of Fixed Medical Allowance, payable to the serving as well as retired employees of the EPFO for outdoor medical treatment - regarding.

Sir,
I am directed to convey the approval of the 67th Executive Committee, held on 4.12.2009, CBT EPF for enhancement of the Fixed Medical Allowance (FMA) from Rs.600/- p.m. (Rupees Six hundred only) to Rs.1200/- p.m.(Rupees one thousand two hundred only). This enhancement will be effective from 1st January, 2009 and subject to the following conditions.

(i) The enhancement of fixed medical allowance will be available to serving employees and pensioners (including family pensioners) of the Employees Provident Fund Organization. The serving employees of the Organization who are in the Head Office at New Delhi and Regional/Sub Regional Office at Delhi and at stations which are covered by the Central Government Health Scheme will not be eligible for Fixed Medical Allowance. AS soon as any employees is covered by Central Government Health Scheme, the fixed medical allowance admissible to him/her shall be stopped.

(ii) If two or more members of family are working in the EPF Organisation, only one of them will be eligible for the facility of fixed medical allowance.

(iii) In the case of an employee whose wife/husband spouse is an employee of a Government or any other organization (including private Firm/Office) he/she will be required to give an undertaking that his/her spouse is not availing of medical facilities in cash, if any granted by their respective employees.

(iv) The Fixed Medical Allowance will be in lieu of the medical facility available for outdoor treatment under the Central Services (Medical Attendance) Rules, 1944 as adopted by the EPF Organisation for its own employees and pensioners.

Yours faithfully

s/d
(V.P.Ramaiah)
Additional Central Provident Fund Commissioner (HR)

Click here to get original order...

Read more...

Grant of Grade Pay of Rs.4600 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006

EMPLOYEES' PROVIDENT FUND ORGANISATION
(MINISTRY OF LABOUR & EMPLOYMENT, GOVT.OF INDIA)
Head Office
Bhavishya Nidhi Bhawan
14-BHIKAJI CAMA PLACE, NEW DELHI - 110066
www.efpindia.gov.in : www.epfindia.nic.in

No. HRD/2(3)82/EO-AO/Pt-III/43140

Dated: 19 Oct 2010

To
All Additional Central P.F. Commissioners,
All Regional P.F. Commissioner (I) In-Charge of the Regions,
All Regional P.F. Commissioner (II) In-Charge of the SROs.

Subject: Grant of Pay Structure of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006 which were granted the Normal replacement Pay Structure of Grade Pay of Rs.4200 in the PB-2.

Sir,
Please refer to this office letter No. HRD/1(2) 2008/Implementation of 6th CPC/16306 dated 17.03.2010 on the subject mentioned above wherein Grade Pay of Rs.4600/- in place of Rs.4200/- was allowed to the cadre of EO/AO.

In this circular, it was further clarified that as per the H.O. letter NO. HRD/1(a)2003/Pay scales/Pt.II/60951-6500-10500 notionally w.e.f. 1/04/2004 with actual financial effect from 1/9/2007, therefore the financial benefits in accordance with the DoPT circular in the cadre of EO/AO shall be effected w.e.f. 1/09/2007 onwards.

In this regard, it is to state that it has come to the notice of the Head Office that while implementing the above mentioned order of granting Grade Pay of Rs.4600/- to EO/AO, the benefit of pay fixation has also been extended by some regions, either by giving increment or by fixing the basic pay corresponding to pre-revised pay scale of Rs.7450-11500/- by using fitment table. This is totally erroneous and against the spirit of the order.

It is once again clarified that the aforesaid letter permits the grant of only Grade pay of Rs.4600 in place of Rs.4200 and no benefits of pay fixation i.e. grant of any increment of fixation of pay using fitment table corresponding to pre-revised scale of Rs.7450-11500/- are to be given in this regard. If such benefits have been given, then the recovery of the excess amount should immediately be effected and an action taken report be sent to this office by 29th October 2010 positively.

s/d
Yours faithfully

(R.K.Kukreja)
Regional P.F. Commissioner (HRM)

Click here to get original order...

Read more...

Kharge rejects Finance ministry's 'advice'

Kharge rejects Finance ministry's 'advice'

Bangalore, Sep 18 (UNI) Union Labour Minister Mallikarjuna Kharge today said his Ministry will not heed to the 'advice' made by the Finance Ministry to invest 15 per cent of the funds in the Provident Fund account in stock market.

At present, only five per cent of the Rs 3,00,000 crore in the fund is being invested in the equity market under the strict advice of the financial consultants hired by the Employees Provident Fund Organisation (EPFO).

Speaking to UNI, Mr Kharge, who is the Chairman of the Central Board of Trustees of the EPFO, said safety of the PF funds will be of paramount importance for his ministry and the organisation would continue to invest only in recognised institutions like RBI, SBI, public sector units and other governmental organisations, which give guarantee of certain percentage of returns.

''We cannot take risk when it comes to the funds saved for years by the employees. PF is their lifetime savings and the only guarantee that will help them lead a comfortable retired life.

''Finance Ministry has asked us to increase the funds placed in open market to 15 per cent. But this will not happen. If the government gives us guarantee for our original capital and the returns in terms of interest or dividend, then we can see. But we cannot play into the hands of the open market'' he stressed.

Source: UNI India

Read more...

Expert group calls for separating PF and pension accounts

Expert group calls for separating PF and pension accounts

An expert group has called for carving out two separate accounts -- PF and annuity -- in the employee provident fund scheme to meet the challenge of fund depletion in the pension scheme and introducing greater transparency for subscribers.

Under the existing scheme, the pension is paid out of the pension fund, which is managed by Employees' Provident Fund Organisation (EPFO).

The Employee Pension Scheme (EPS) 1995, covering 4.45 crore formal sector workers, has become the government's area of concern due to surging deficit that had reached Rs 22,000 crore by March 31, 2006 as per the latest data available.

The committee, headed by former additional Labour Secretary S K Srivastava, has proposed a provident fund-cum-annuity scheme in which two accounts would be maintained for each member a PF account (PFA) and an Annuity Contribution (or pension) Account (ACA).

Among other things, the committee feels that the move will help reduce mounting deficits in the EPS as EPFO will pay off the annuity amount by purchasing a scheme for the subscriber and save various costs in the process.

Annuity refers to a scheme sold by insurers designed to provide payments to the holder at specified intervals, usually after retirement.

The old age regular benefit to the members, under the new arrangement, would be provided in the form of annuity purchased through the accumulation in ACA.

The expert group report is likely to be discussed on September 15 at the meeting of Central Board of Trustees (CBT), the apex decision making body of EPFO.

Currently, a subscriber of Employees' Provident Fund (EPF) gets only one account, but he is eligible for both provident fund and pension.

However, the report says that although subscribers get defined sum in pension through a fixed formula, the scheme is managed in a non-transparent manner.

The new arrangement, the group said, "would ensure that individual accounting of the members, addressing their long-standing demand of transparency in pension fund accounts and commensurate benefits."

At present, 8.33 per cent of workers' salary is contributed towards EPS to which government contributes 1.16 per cent of an employees' pay, which adds up to 9.49 per cent of the salary.

In the proposed scheme, a higher percentage of 13.5 of employee's salary would go to pension account, which would include a government subsidy of 2 per cent. Besides, employee will have an option to increase his contribution in ACA.

The committee says that two separate accounts for provident fund and annuity (pension) will motivate individual members to retain funds in the scheme till superannuation as the scheme would no longer pooled.

The government constituted a committee in March 2008 for comprehensive review of the scheme.

When the EPFO started operations in 1952, there was no family pension benefit for subscribers. In 1971, family pension was introduced wherein the spouse and other family members receive money in case of the subscriber's demise while in service.

Later, under the improved scheme unveiled in 1995 the benefit was extended to subscribers also after retirement and in case of disability during service.

Source: DDI News

Read more...

Region-wise details of Inoperative Account (unclaimed money) - Employees’ Provident Fund Organisation (EPFO)

Unclaimed Money With EPFO

Various steps have been taken by the Employees’ Provident Fund Organisation (EPFO) to strengthen Service to Members Area. Introduction of National Electronic Funds Transfer (NEFT), Short Message Service (SMS) facility for claim settlement, EPFiGMS (internet based grievances mechanism system) and Special drive for priority disposal of transfer cases are few of such instances in this direction. In addition to it, the ‘Computerization Project’ of the EPFO will provide more tools to serve the subscribers in much better way.

The database of the members is not centrally maintained and is primarily maintained by the Regional/Sub-Regional Offices of Employees’ Provident Fund Organisation (EPFO). However, in ‘Computerization Project’ of the EPFO, a Central Depository for keeping Members database has been envisaged to have a quick access to member’s database even at Head Office level. This is one of the reasons for multiple accounts in case of certain members.

Region-wise details of Inoperative Account (unclaimed money) as per the audited Balance Sheet for the financial year 2008-09 is given below:

Sl. No.	Region	Balance as on 31.03.2009 (in Rs.)
1	ANDHRA PRADESH - HYDERABAD	5,960,442,298.84
2	ANDHRA PRADESH - GUNTUR	2,349,819,190.00
3	BIHAR	640,455.03
4	CHHATTISGARH	1,547,757,920.50
5	DELHI-NORTH	36,612,348.55
6	DELHI-SOUTH	29,973,933.04
7	GOA	180,369,271.00
8	GUJARAT - AHMEDABAD	20,144,984.69
9	GUJARAT - BARODA	6,137,088.62
10	HARYANA	31,674,066.60
11	HIMACHAL PRADESH	1,005,117,000.00
12	JHARKHAND	503,214.65
13	KARNATAKA - BANGALORE	31,901,486.00
14	KARNATAKA - MANGALORE	362,000.00
15	KERALA	1,757,689.00
16	MADHYA PRADESH	1,344,460,643.00
17	MAHARASHTRA - I (BANDRA)	78,957,978.49
18	MAHARASHTRA - II (THANE)	-
19	MAHARASHTRA - NAGPUR	3,139,926,215.80
20	MAHARASHTRA - PUNE	17,754,414,135.67
21	N.E. REGION	4,241,478.53
22	ORISSA	2,925,876.08
23	PUNJAB - CHANDIGARH	44,649,373.00
24	PUNJAB - LUDHIANA	81,505,706.37
25	RAJASTHAN	11,549,049.14
26	TAMIL NADU - CHENNAI	4,405,128,663.58
27	TAMIL NADU - COIMBATORE	782,335,401.74
28	TAMIL NADU - MADURAI	1,994,091,617.80
29	UTTARAKHAND	39,179,693.43
30	UTTAR PRADESH	12,736,558,898.13
31	WEST BENGAL - KOLKATA	4,286,103,228.49
32	WEST BENGAL - JALPAIGURI	1,016,060,035.83
	TOTAL	58,925,300,941.60

Shri Harish Rawat, Minister of State for Labour and Employment gave this information in reply to a question in the Lok Sabha.

PIB

Read more...

EPFO proposes salary cap rise to Rs 10,000

The Employee Provident Fund Organisation (EPFO) has sent a proposal to the labour ministry to increase the salary limit for paying employee provident fund (EPF) to Rs 10,000 from the current Rs 6,500.

It has also proposed covering companies with a minimum of 10 employees under the Employee Provident Fund and Miscellaneous Provisions Act (EPF & MP Act), 1952, against the present norm of a minimum of 20 employees.

A source close to the development said: “The current norms in EPF & MP Act, 1952, results in millions of workers being left out of the EPFO regulations. Therefore, we have proposed to the government to raise the salary cap and to lower the limit on the worker count in an establishment to be covered by EPFO.”

WIDER UMBRELLA

* Current norms in EPF & MP Act, 1952, results in millions of workers being left out of the EPFO regulations

* The organised labour sector comprises 300 million workers, of which only 40 million are covered under EPFO regulations

* If the proposal is approved by Parliament, the EPFO is likely to cover 50% of the organised labour market

* At present, employers have to contribute a minimum of 12 per cent towards EPF on less than or up to Rs 6,500 (basic + dearness allowance)

* This move will especially help contractual workers. They are the biggest concerns because they are often illiterate

The organised labour sector comprises 300 million workers, of which only 40 million are covered under EPFO regulations. Sources said if the proposal were approved by Parliament, the EPFO was likely to cover 150 million workers in the organised sector, which would be 50 per cent of the organised labour market. The proposal is awaiting the ministry’s approval.

Manish Sabharwal, co-founder and chairman, TeamLease Services, however, said a chunk of these 300 million workers are state- and central-government employees. “The EPFO should first concentrate on covering the private and public sectors in totality before expanding its base any further.” He felt that matters would become more complicated for the organisation if the base were expanded.

At present, employers have to contribute a minimum of 12 per cent towards EPF on less than or up to Rs 6,500 (basic + dearness allowance).

This move will especially help contractual workers. Many smaller firms, which work as contractors to bigger firms, are not obliged to honour the EPF Act. “But in the case of contractual workers, their supervisor pays a lump sum without segregation, due to which their basic-plus-DA earning exceeds the limit of Rs 6,500, so that they need not be registered under the Act,” said the source.

The source added that contractual workers were the biggest concerns because they were often illiterate. Since their employers paid them more than the government prescribed cap, the EPFO could not penalise them. If the government approved the EPFO proposals, these people stood to benefit.

The change in the limit, if approved, could be an important move because of rising salaries over the years. But smaller industries, like the beedi industry, which pay a lower rate of 10 per cent, because of lower turnover, would see a higher outgo if this regulation is implemented.
Source:Business Standard

Read more...