Payroll Compliance Aug 2017

Compliance Calendar for Aug 17

Professional Tax – States – Remittances

Updates on Labour Laws

Employees’ state insurance corporation

In exercise of the powers conferred by Section 97 of the Employee’s State Insurance Act, 1948 (34 of 1948), the Employees’ State Insurance Corporation, hereby makes the following Regulations further to amend the Employees ‘ State Insurance (General) Regulations, 1950, namely;

  • This Regulations may be called Employees’ State Insurance (General) Amendment Regulation, 2017
  • This Regulations 31, for the words within “21 days” as they Occur, the words within “15 days” shall be Substituted
  • They shall come into force with effect from the contribution payable for the month of June, 2017 ie. by 15th July 2017

Amendment on Minimum Wages:


*With Effect from July, 01, 2017.

West Bengal:

*It will be the minimum rates of wages int the said employment for the perios from 1st July, 2017 to 31st Dec., 2017.

Zone ‘A’ = (i) Areas under Municipal Corporations, Municip

Zone ‘B’ = Rest of the West Bengal.

Unskilled : Waiter, Washman, Peon, Utility Worker, Helper, Cleaner, Sweeper, Canteen Boy;

Semi-skilled : Helper of Technician Service, Waiter Grade-I, Steward, AssistantSupervisor;

Skilled : Cook, Chief Cashier, Accountant, Bar Tender, Assistant Manager;

Highly Skilled : Manager, Chief Executive.

Aadhar Is not Mandatory for International Workers:

It is informed that Aadhaar Number would not be mandatory for International Workers as well as workers from Nepal and Bhutan. Further, submission of Aadhaar will be Optional upto 30th September 2017 for those members who already have UAN prior to 1st July 2017 and have to go for re-registration. However, submission of verified Aadhaar Will be mandatory for all such members from 1st October 2017

Employees compensation Act – Basis of entitlement to claim Compensation

In the event of employee’s accident and his relationship with employer stands proved with evidence, the dependents of the deceased employee who died due to accident which took place during the course of employment, would be entitled to compensation under the workmen’s/Employee’s compensation Act, 1923, to be paid by the insurer of employer-insured or by the employer itself.

Payment of Gratuity Act – When an employer is not under an obligation to pay

When an employee compulsorily retire from service, her/his gratuity would not be payable by an employer. In case of cessation of employee’s service by way of penalty, Penalty section 4 (1) of the act does not impose any obligation on the employer to pay gratuity to an employee. The compulsory retirement is specifically prescribed as one the major penalty and there is distinction between the terms ‘Entitlement’ or ‘Eligibility’ to receive the gratuity with ‘Forfeiture’ of gravity. Compulsory retirement cannot be treated as an ordinary retirement.

Industrial Employment Act – Date of superannuation

When an employer fixes workman’s age of superannuation as 58 years without the consent of him, that would be illegal because the industrial employments (Standing orders) Act, 1946 Prescribing the age of superannuation as 60 years, which makes the workman entitled to full back wages since the workman himself had not obtained from working. The age of retirement fixed by the employer as 58 years is in breach of the provisions of the Act of 1946 which prescribe the age of 60 years as age of superannuation, unless agreed otherwise by the workman.

Payment of Gratuity Act – When an employer is not under an obligation to pay

  • Contractor workers will be entitled to same wages as regular employees. *Supreme Court 785*
  • Interest will be payable for delay in payment of awarded amount. *Supreme court 785*
  • Exercise of the option under Pension Scheme, would not foreclose the exercise of further option. *Supreme Court 866*
  • Proviso to clause of pension scheme permits an option to employer and employee from contribution beyond salary ceiling.
    *Supreme Court 866*

EPFO ties up with 10 banks to make payments of PF withdrawals, Pension to beneficiaries

Retirement body Employees’ Provident Fund Organization (EPFO) has tied up/entered into arrangement agreement with ten banks to collect EPFO dues and to make payments of Provident Fund (PF) withdrawals, pension and insurance to EPFO beneficiaries. These banks are State Bank of India, Punjab National Bank, Indian Bank, Allahabad Bank, Union Bank of India, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

The main objective of the multi-banking arrangement is to provide more options to the employers to remit the Employees’ Provident Fund (EPF) contribution directly from their bank accounts. This will not only make them cost effective but also ensure real time transfer of funds through net banking.