Provident Fund Amnesty Scheme.

Provident Fund Amnesty Scheme.
Thursday, January 5, 2017
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Dear all,
Your association SIMA is forwarding herewith a notification issued by Ministry of Labour and Employment dated 30th Dec 2016 regarding Provident Fund Amnesty Scheme. The scanned copy of the said notification is enclosed herewith.
Under the Employees' Provident Funds Scheme, 1952 ("Provident Funds Scheme"), with the objective of increasing coverage and extension of benefits to employees, an amnesty scheme by the name of 'Employees' Enrollment Campaign, 2017' has been launched.
The amnesty scheme has come into force on 1st January 2017 and will cease to operate on 31st March 2017. The amnesty scheme will allow employers to enroll employees who were required to become Provident Fund members but were not enrolled for any reason. In respect of such employees, the employer will need to:
a. Deposit employer's contribution payable under the Provident Fund Scheme.
b. Deposit employee's contribution only where the same is deducted from employee's salary in the respective months.
c. Deposit interest @ 12% per annum for delayed deposit of contribution.
d. Deposit reduced nominal damages (penalty) of INR 1 per annum for delayed deposit of contribution.
There will be no administrative charges payable in respect of contributions made under the amnesty scheme.
The employer is required to make a declaration to the Provident Fund Office providing details of such employees proposed to be covered under the amnesty scheme. The format of such declaration is yet to prescribed.
The amnesty scheme will not be applicable where any proceedings under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("Provident fund Act") are ongoing against the employer.
Thanking you,
With regards, 
For Silvassa Industries & Manufacturers Association    
Narendra Trivedi 

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