EPFO stalls perk-basic wage clubbing
20 Dec 2012 6:01 AM IST
Amid pressure from trade unions, the Employees’ Provident Fund Organisation (EPFO) has kept in abeyance its circular that seeks to tighten norms for initiation of inquiry against employers in PF cases and clubbing of allowances with basic wages for computing PF contribution.
‘It has been decided to keep the circular in abeyance with immediate effect and till further orders,’ another EPFO circular to field staff said. After the circular was issued by the EPFO on November 30, the trade unions had lodged their protest with Labour Ministry, terming it anti-worker.
According to the circular, the inquiry against employers can only be initiated after ‘actionable and verifiable information’ is placed for consideration before the compliance officers.
With regard to the time period for initiating inquiries, it had said, ‘No inquiry or investigation shall ordinarily go beyond seven years, ie it shall cover the period of default not exceeding the preceding seven years.’
The circular lso redefined the meaning of ‘basic wages’ for the purpose of provident fund deductions. It said, ‘All such allowances which are ordinarily, necessarily and uniformly paid to the employees are to be treated as the basic wages.
‘It has been decided to keep the circular in abeyance with immediate effect and till further orders,’ another EPFO circular to field staff said. After the circular was issued by the EPFO on November 30, the trade unions had lodged their protest with Labour Ministry, terming it anti-worker.
According to the circular, the inquiry against employers can only be initiated after ‘actionable and verifiable information’ is placed for consideration before the compliance officers.
With regard to the time period for initiating inquiries, it had said, ‘No inquiry or investigation shall ordinarily go beyond seven years, ie it shall cover the period of default not exceeding the preceding seven years.’
The circular lso redefined the meaning of ‘basic wages’ for the purpose of provident fund deductions. It said, ‘All such allowances which are ordinarily, necessarily and uniformly paid to the employees are to be treated as the basic wages.
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