This PPT will give you the complete details of the amendments made to the proposed amendments to the EPF act. Along with the practical examples. Subscribe to our channel for more such updates.

1. THE EPF & MISC PROVISIONS
(AMENDMENT) BILL, 2019
Email : esipfadvisor@gmail.com

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3. Overview
This document covers Proposed
changes in the PF amendment Act
2019
Recent progress
● The proposed bill was circulated by
MOLE on 23rd Aug, 2019
● Suggestions / comments are
requested till 22nd Sept, 2019
Let’s discuss the major changes.
The original circular and this document both
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4. ● Inclusions - Basic, DA,
Retaining Allowances
● Exclusions Bonus, Value of
House Accommodation &
similar allowances,
Conveyance allowance, TA,
HRA, OT, Commission,
retrenchment, Special
Expenses
Wage Definition
● Sum of allowances can not
go beyond 50% of wage,
otherwise excess amount
will be included in wage
● Since definition is borrowed
from COW, the bifurcation
of MW may not be possible
● Production incentive not in
exclusions
Borrowed from code on wage 2019

5. Example
correct Bifurcation
● Basic 7,000/-
● Allowances 3,000/-
● Gross 10,000/-
Allowances less than 50% of
Basic
In-correct Bifurcation
● Basic 6,000/-
● Allowances 4,000/-
● Gross 10,000/-
Allowances more than 50% of
Basic

6. ● New provision added in
section 6
● Central Govt. has kept an
option to vary the rates of
PF for certain period of
time for any class of
employees
Different Contribution Rates
● Modification of the rates
would depend on various
factors like age, income,
gender etc..
● No change in employer
contribution has been
proposed.
For Employees

7. Period of Limitation
● Further, 2 year time to
conduct and conclude and
enquiry
For 7A and Enquiry
● A limitation period of 5
years to initiate 7A enquiry
● Similar to ESI Act ( 5 years )
and Income Tax Act ( 7
years )

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9. Penalties
● Most penalties in code
increased 10X
Other Amendments
First Payment
● PF payment to be given
priority over other debts in
Insolvency and bankruptcy
cases
EPS Exemption
● Guideline to exempt from
EPS if enrolled in NPS

10. What is next?

11. 23.8.19
Amendment Bill Kept
in public forum
22.09.19
Comments &
Suggestions to be
submitted
TBD
Incorporation of
relevant changes
TBD
Bill to be tabled in both
the houses of
parliament
TBD
If passed will become
part of Act with /
without changes

12. Impact of
amendments
(if goes through)
1. Increased PF contribution,
burden on employees and
employers
2. Less harassment by authorities
owing to clear definitions,
period of limitation
3. Flexible slab rate is welcome
move, but will increase
compliance issues

13. How to send comments ?
Format
Send to
rahul.bhagat@ips.gov.in or samir.kumar70@nic.in
Deadline
22nd September 2019

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15. Impact of
amendments
(if goes through)
1. Increased PF contribution,
burden on employees and
employers
2. Less harassment by authorities
owing to clear definitions,
period of limitation
3. Flexible slab rate is welcome
move, but will increase
compliance issues

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