No need of manual request for PF transfer on changing jobs, check details
According to EPFO guidelines, a member need not to file any transfer claim on change of employment if the employee’s Universal Account Number (UAN) is seeded and it is fully KYC-compliant.
New EPFO rule from April 1: No need of manual request for PF transfer on changing jobs, check details
A new rule regarding transfer of provident funds on job change by EPFO subscribers comes into effect from the beginning of the new financial year. Starting April 1, employees would no longer have to submit manual requests for transfer of provident funds when changing jobs.
The Employees’ Provident Fund Organisation (EPFO) has implemented the system of automatically transferring provident fund (PF) balance of employees on switching jobs.
To ensure hassle-free transition for employees, EPFO will automatically credit your PF balance to your new employer’s account.
According to EPFO guidelines, a member need not to file any transfer claim on change of employment if the employee’s Universal Account Number (UAN) is seeded and it is fully KYC-compliant.
As the new EPF rules come into effect, whenever an employee joins a new job and the first month’s contribution is credited to the PF account an auto trigger for transfer will be generated. With this, the member’s past PF amount gets automatically transferred to the PF account under the new employer. This automatic transfer will be executed automatically if not stopped by the member.
Overtime Allowance
In the case of the employer as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers to the employee to do the overtime work after the working hours.
When employee does overtime work it amounts to the acceptance for the same, hence there emerges concluded implied contract between the employer and the employee.
Both the remuneration received during the working hours and overtime constitutes a composite wage and thereby it is a wage within the meaning of Sec.2(22) of the ESI Act.
Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.The same view was held by the Supreme Court in its judgement delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued vide memo No.3-1(2)/3(1)/68 dt. 31.5.68).
FAQs
Who all can apply for EPFO service through AGILE-PRO-S form?
Any user who intends to incorporate company through SPICe+ eform can now also apply for Establishment code issued by Employees Provident Fund Organisation through this eform. User is required to file eform SPICe+ along with eform SPICe+ MOA (INC-33) and eForm SPICe+ AOA (INC-34) and AGILE-PRO-S form to obtain Establishment code.
This process will be applicable only for Companies incorporated by MCA through SPICe+ application. Factories intending to obtain Establishment code as issued by EPFO shall follow the existing process of registration through their respective Common Portal for registration.
Who all can apply for ESIC service through AGILE-PRO-S form?
Any user who intends to incorporate company through SPICe+ eform shall apply for Employer Code as issued by Employees State Insurance Corporation through this eform. User is required to file eform SPICe+ along with eform SPICe+ MOA (INC-33) and eForm SPICe+ AOA (INC-34) and AGILE-PRO-S form to obtain Employer code.
This process will be applicable only for Companies incorporated by MCA through SPICe+ application. Factories intending to obtain Employer code as issued by ESIC shall follow the existing process of registration through their respective Common Portal for registration.
Is Professional tax registration mandatory for all companies?
No. Professional tax registration is mandatory only for new companies incorporated in the State of Maharashtra, Karnataka and West Bengal.
Is Shops and Establishment registration mandatory for all companies?
No. Shops and Establishment registration is optional. Also, it is available only for new companies incorporated in the State of Delhi. But, it is recommended to OPT for registration as no first time registration will be provided by Labour department portal.
