This document provides a summary of key labour law updates in India between 2019-2020. It discusses amendments made to acts like the Employees' Provident Fund Act, Employees' State Insurance Act, and Code on Wages. Some important changes include reducing the ESI contribution rate, enabling online filing of EPF pension claims, extending EPF and ESI benefits to Jammu and Kashmir, and capping tax exemption on employer's EPF contribution over Rs. 7.5 lakh annually. The document also mentions measures taken due to COVID-19 like no wage deduction and extension of compliance dates.

1. Yearly Review (2019-20)
Labour Laws, Social Security, Employment

2. Stay Updated
Subscribe to our Newsletter

3. This document covers
Labour Law Updates, 2019-20
What will we cover?
● Acts & Amendments
● Rules, Notifications
● Court decisions
Let’s discuss !
Overview

4. ● In October 2018 judgment, the Kerala High Court held
that in classifying employees on the basis of a cut-off date
(1 September 2014), the government had exceeded its
powers under the provident fund legislation. The
amendments to the EPS created different classes of
pensioners based solely on that date.
● On 1 April 2019, the Supreme Court issued its decision
dismissing the special leave petition
● The court accordingly held that the following should be
set aside: Notification No. GSR 609(E) amending the EPS;
PF Pension on Full Wages
News Link :- https://tinyurl.com/y7yrz542
April 2019
EPF Act

5. EPF interest rate of 8.65% for FY 19April 2019
EPF Act
News Link :- https://tinyurl.com/ycuzlurm
● The government reviews the interest rate applicable to
the provident fund scheme for salaried individuals on a
yearly basis.
● For the fiscal 2018-19, Labour Ministry has notified 8.65
per cent rate of interest on EPF.
● This rate of interest is 10 basis points higher than 8.55
per cent provided in 2017-18.

6. Samadhan: e- dispute portal for filing
industrial disputes launched
May 2019
EPF Act
https://samadhan.labour.gov.in/
News Link :- https://labour.gov.in/monthly-progress-report
● E-dispute portal for filing disputes by
employees/employers launched by the Secretary
(Labour and Employment)
● Launched on a pilot basis in Delhi, Rajasthan,
Chhattisgarh, Karnataka and Odisha

7. Filing on online pension claims enabledMay 2019
EPF Act
News Link :- https://labour.gov.in/monthly-progress-report
● A new service on the Unified Portal-Member has enabled
online filing of pension claims digitally from anywhere,
anytime and with minimal inputs.
● The facility to file composite claims has also been
launched for the family members or the nominee of a
deceased member. This will help in in timely extending
due benefits to the bereaved family.

8. Government reduces ESI contribution
rate to 4 per cent
June 2019
ESI Update
News Link :- https://tinyurl.com/ycqag9ad
● The government has reduced the contribution under the
Employees’ State Insurance (ESI) Act to 4% from 6.5%.
● Reduction in Employers’ Contribution from 4.75% to
3.25% & Reduction in Employees’ Contribution from
1.75% to 0.75%
● This move expected to increase the take home salary of
the employee as well as reduce the financial burden of
the employers.

9. RTI Amendment Bill, 2019
● RTI amendment bill removed statutory protection of
tenure, salaries, allowances and conditions of service of
Chief and Information Commissioners of Central
Information Commission
● The Bill states that the salaries, allowances, and other
terms and conditions of service of the central and state
CIC and ICs will be determined by the central
government.
July 2019
RTI Act
News Link :- https://pib.gov.in/newsite/PrintRelease.aspx?relid=192264

10. Labour CodesJuly - Dec
2019
Labour Codes
News Link :- https://labour.gov.in/labour-codes
Code Status
Code on Wages, 2019 Passed, Notified, Rules Awaited
The Code on Social Security
Referred to Parliamentary Standing
Committee
The industrial Relations Code
The Occupational Safety, Health and
Working Conditions Code
Detailed Video?

11. Code on Wages Act, 2019
● Definition of wages
The definition of wages has been unified. The definition
of wages now has three parts to it- an inclusion part,
specified exclusions and conditions which limit the
quantum of exclusions.
● Minimum Wages
The central government will set the national floor rate
for wages. The state governments cannot keep the
minimum wages lower than the national floor rate.
August 2019
Labour Code
News Link :- https://labour.gov.in/labour-codes

12. Courses For Career
Growth & Starting Your
Own Consultancy

13. EPF approves to restore
commutation of Pension
● The move would benefit the pensioners who had opted
for commutation and got a lump-sum amount at the time
of retirement before 2009.
● Pension commutation refers to part-withdrawal of fund
in advance by a subscriber, who then gets reduced
pension amount for 15 years. After 15 years, pensioners
were entitled to get the full pension.
August 2019
EPF Act
News Link :- https://tinyurl.com/yah4h5ya

14. EPFO will now cover workers in
J&K and Ladakh
● Workers in Jammu and Kashmir were governed by its
EPF scheme of 1961 and the Employees’ Deposit Linked
Insurance (EDLI) scheme of 2000 so far.
● The movemakes J&K employees eligible for a series of
social security benefits ranging from family and disability
pension to higher life insurance, higher PF interest rate
and electronic transactions
● It also reduces the employee cost for companies
administrative charges of EPFO are fairly low.
August 2019
EPF Act
News Link :- https://tinyurl.com/ycblpwut

15. Entitled' ESI beneficiaries to get
treatment under Ayushman Bharat
Sep 2019
ESIC Update
News Link :- https://tinyurl.com/y83ceole
● It will be implemented in states where Pradhan Mantri
Jan Arogya Yojana (PMJAY) has been adopted.
● ESI beneficiaries will be dealt through PMJAY
logistics/IT facilities for registration, billing and other
services and medical expenditure as is done for PMJAY
beneficiaries up to a limit of Rs 5 lakh.
● Beyond this, an individual case will be channelled to the
ESIC for approval for further expenditure.

16. ● Eligibility
1. Age - 18 to 40 years
2. Self employed shop owners, retail owners and other
vyaparis (traders) having annual turnover less than Rs 1.5
crore and should not be a member of ESIC, EPFO or PM-
SYM
● Benefits- The minimum assured pension under the
scheme will be a monthly pension of Rs 3,000 on
attaining the age of 60 years.
Govt launches National Pension
Scheme for Traders and Self Employed
News Link :- https://tinyurl.com/y92hbtuu
Sep 2019
NPS

17. Changes ESIC with effect from 1
October, 2019
Oct 2019
ESI Update
News Link :- https://tinyurl.com/y7xtetrm
● Employees must be registered online on the date of
appointment; the online system shall allow maximum 10
days to register the new employee.
● Contribution against employee must be deposited within
the due date. You shall not be able to deposit
contribution online after 42 days from the end date of
the contribution period.
● Below 176/- no employee share deduction

18. EPFO launches online facility for
employees to update the exit date
● EPFO has launched an online facility where EPF account
holders can update the job exit date, i.e., date of leaving
an organisation in the EPFO records.
● Earlier, this date could only be updated by the employer.
If the exit date is not available on the EPFO records then
an EPF account holder cannot withdraw money from his
EPF account or transfer even the account from previous
employer to new one.
January 2020
EPF Act
News Link :- https://tinyurl.com/ydaumx4h

19. ● This will enable large number of pensioners and PF
members to download their documents and avail timely
benefits.
PPOs, UAN cards available on
DigiLocker
January 2019
Digilocker
News Link :- https://tinyurl.com/ydz8r5qv

20. New Tax Slab introducedFeb 2020
Income Tax
News Link :- https://tinyurl.com/y767hubz

21. Employer’s contribution to PF over
Rs. 7.5 lakh set to be taxed
● It is proposed to put an upper cap of Rs 7.5 lakh in a year
on tax exempt employer's contribution in recognised
provident fund, superannuation fund and NPS in the
accounts of an employee.
● The proposed amendment will be effective from April 1,
2021, and will apply from assessment year 2021-22.
Feb 2020
EPF Act
News Link :- https://tinyurl.com/y767hubz

22. EPF interest rate lowered to 8.5%
● EPFO cuts interest rate to 8.5% for 2019-20, a seven-
year low.
● New rate is 15 bps below the figure for the previous
fiscal year.
● The interest rate of 8.5% for EPF balances is still the
highest amongst government savings schemes for
employees.
March 2019
EPF Act
News Link :- https://tinyurl.com/ycozfuch

23. Lockdown Measures
● Wages - No Deduction
● PF - PMGKY. Date extension
● ESI - Date Extension
● Central Labour Returns - Date Extension
March 2019
Covid Impact
News Link :- https://tinyurl.com/ycozfuch

24. Exclusive offers
for LLA subscribers!

25. Follow us on This Document will be shared on our
Telegram Group,
Download Telegram & search
Labour Law Advisor