The Ministry of Labour and Employment has issued several notifications regarding amendments to various employee benefit schemes. These changes are aimed at updating and refining the existing frameworks for employee pensions, provident funds, and insurance. The amendments address issues such as default payments, adjustment factors, and return of contributions, and they emphasize the government’s commitment to enhancing the financial security of employees.
Page Contents
A. Employees Pension (Third Amendment) Scheme 2024
The Employees Pension (Third Amendment) Scheme, 2024, detailed in notification G.S.R. 327(E) dated June 14, 2024, modifies the Employees’ Pension Scheme, 1995. The amendment focuses on the penalties for employers who default on contributions to the Employees’ Pension Fund. Specifically, it authorizes the Central Provident Fund Commissioner or a designated officer to impose a penalty of 1% of the outstanding contributions per month. This update is intended to enforce stricter compliance and ensure timely payments to the pension fund.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 14th June, 2024
G.S.R. 327(E).—In exercise of the powers conferred by section 6A read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Pension Scheme, 1995, namely:-
1. Short title and Commencement.— (1 ) This Scheme may be called the Employees’ Pension (Third Amendment) Scheme, 2024.
(2) It shall come into force from the date of its publication in the Official Gazette.
2. In the Employees’ Pension Scheme, 1995, in paragraph 5, for sub-paragraph (1), the following sub-paragraph shall be substituted, namely:-
“(1) Where an employer makes default in the payment of any contribution to the Employees’ Pension Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government by notification in the Official Gazette in this behalf, may recover damages from the employer at the rate of one per cent. of the arrear of contribution per month or part thereof.”
[F. No. R-15011/01/2022-SS-II]
ALOK MISHRA, Jt. Secy.
Note : The Employees’ Pension Scheme, 1995 was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide notification number G.S.R. 748(E), dated the 16th November, 1995 and was last amended vide notification number G.S.R. 2061(E), dated the 3rd May, 2023.
B. Employees Provident Funds (Amendment) Scheme 2024
The Employees Provident Funds (Amendment) Scheme, 2024, outlined in notification G.S.R. 329(E) dated June 14, 2024, amends the Employees’ Provident Funds Scheme, 1952. The amendment introduces a similar penalty for employers defaulting on contributions to the provident fund or failing to transfer required accumulations. The authorized officials can now recover damages at a rate of 1% of the arrears per month, aiming to enhance the enforcement of timely and complete contributions by employers.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 14th June, 2024
G.S.R. 329(E).—In exercise of the powers conferred by section 5 read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Provident Funds Scheme, 1952, namely:-
1. Short title and Commencement.— (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2024.
(2) It shall come into force from the date of its publication in the Official Gazette.
2. In the Employees’ Provident Funds Scheme, 1952, in paragraph 32A, for sub-paragraph (1), the following subparagraph shall be substituted, namely:-
“(1) Where an employer makes default in the payment of any contribution to the fund, or in the transfer of accumulations required to be transferred by him under sub-section (2) of section 15 or sub-section (5) of section 17 of the Act or in the payment of any charges payable under any other provisions of the Act or Scheme or under any of the conditions specified under section 17 of the Act, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government by notification in the Official Gazette in this behalf, may recover damages from the employer at the rate of one per cent. of the arrear of contribution per month or part thereof.”
[F. No. R-15011/01/2022-SS-II]
ALOK MISHRA, Jt. Secy.
Note : The Employees’ Provident Funds Scheme, 1952 was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number SRO. 1506 dated the 2nd September, 1952 and was last amended vide notification number G.S.R. 225(E), dated the 27th March, 2020.
C. Employees’ Deposit Linked Insurance (Amendment) Scheme, 2024
The Employees’ Deposit Linked Insurance (Amendment) Scheme, 2024, specified in notification G.S.R. 330(E) dated June 14, 2024, modifies the Employees’ Deposit Linked Insurance Scheme, 1976. Effective from its publication date, this amendment imposes a 1% monthly penalty on employers defaulting on contributions to the Insurance Fund or other related charges. This measure seeks to ensure more rigorous adherence to the funding requirements of the insurance scheme, providing better security to the employees’ insurance benefits.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 14th June, 2024
G.S.R. 330(E).—In exercise of the powers conferred by section 6C read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Deposit Linked Insurance Scheme, 1976, namely:-
1. Short title and Commencement.— (1) This Scheme may be called the Employees’ Deposit Linked Insurance (Amendment) Scheme, 2024.
(2) It shall come into force from the date of its publication in the Official Gazette.
2. In the Employees’ Deposit Linked Insurance Scheme, 1976, in paragraph 8A, for sub-paragraph (1), the following sub-paragraph shall be substituted, namely:-
“(1) Where an employer makes default in the payment of any contribution to the Insurance Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government by notification in the Official Gazette in this behalf, may recover damages from the employer at the rate of one per cent. of the arrear of contribution per month or part thereof.”
[F. No. R-15011/01/2022-SS-II]
ALOK MISHRA, Jt. Secy.
Note : The Employees’ Deposit-Linked Insurance Scheme, 1976 was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 488(E), dated the 28th July, 1976 and was last amended vide notification number G.S.R. 299(E), dated the 28th April, 2021.
D. Employees Pension (Amendment) Scheme 2024
The Employees Pension (Amendment) Scheme, 2024, specified in notification G.S.R. 325(E) dated June 14, 2024, updates the Employees’ Pension Scheme, 1995, by adding new actuarial factors for different age groups in Table B. These factors are used to calculate the pension benefits for employees retiring before the age of 42. The amendment introduces a graduated scale for pension benefits, aiming to provide a more accurate reflection of the contributions and the age at retirement, thereby enhancing the equity and adequacy of the pension received by the employees.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 14th June, 2024
G.S.R. 325(E).—In exercise of powers conferred by Section 6A read with sub-section (1) of section 7 of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Pension Scheme, 1995, namely:-
1. Short title and commencement— (1) This Scheme may be called the Employees’ Pension (Amendment) Scheme, 2024.
(2) This notification shall come into force from the date of its publication in the Official Gazette.
2. In the Employees’ Pension Scheme, 1995, in the ‘Table B’, after the entry “less than 34” in column (1) and the corresponding entry “13.173” in column (2), the following shall be inserted, namely:—
| YEARS | FACTOR |
| (1) | (2) |
| “Less than 35 | 14.2271 |
| Less than 36 | 15.36555 |
| Less than 37 | 16.59509 |
| Less than 38 | 17.92303 |
| Less than 39 | 19.35722 |
| Less than 40 | 20.90618 |
| Less than 41 | 22.57909 |
| Less than 42 | 24.38586” |
[F. No. S-65015/01/2023-SS-II]
ALOK MISHRA, Jt. Secy.
Note: The Employees’ Pension Scheme, 1995 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 748(E) dated the 16th November, 1995 and was last amended vide notification number S.O. 2061 (E) dated the 3rd May, 2023.
E. Employees Pension (Second Amendment) Scheme 2024
The Employees Pension (Second Amendment) Scheme, 2024, detailed in notification G.S.R. 326(E) dated June 14, 2024, replaces Table D in the Employees’ Pension Scheme, 1995, which deals with the return of contributions upon exit from employment. The new table outlines the proportion of wages returned based on months of service, ranging from 0.08 for one month to 9.33 for 109 months and beyond. This detailed schedule aims to provide clearer guidelines and a structured approach to calculating the return of contributions, ensuring employees receive fair and transparent compensation upon exiting their employment.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 14th June, 2024
G.S.R. 326(E).—In exercise of the powers conferred by section 6A read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Pension Scheme, 1995, namely:-
1. (l) This Scheme may be called the Employees’ Pension (Second Amendment) Scheme, 2024. (2) It shall come into force from the date of its publication in the Official Gazette.
2. In the Employees’ Pension Scheme, 1995, for Table-D, the following Table shall be substituted, namely:-
“TABLE D
(See Paragraph 14)
Return of contribution on exit from the employment
| Months of Service | Proportion of wages at exit |
| 1 | 0.08 |
| 2 | 0.17 |
| 3 | 0.25 |
| 4 | 0.33 |
| 5 | 0.42 |
| 6 | 0.51 |
| 7 | 0.60 |
| 8 | 0.68 |
| 9 | 0.77 |
| 10 | 0.85 |
| 11 | 0.94 |
| 12 | 1.02 |
| 13 | 1.10 |
| 14 | 1.18 |
| 15 | 1.26 |
| 16 | 1.34 |
| 17 | 1.42 |
| 18 | 1.51 |
| 19 | 1.59 |
| 20 | 1.67 |
| 21 | 1.75 |
| 22 | 1.83 |
| 23 | 1.91 |
| 24 | 1.99 |
| 25 | 2.07 |
| 26 | 2.16 |
| 27 | 2.24 |
| 28 | 2.32 |
| 29 | 2.40 |
| 30 | 2.49 |
| 31 | 2.57 |
| 32 | 2.65 |
| 33 | 2.73 |
| 34 | 2.82 |
| 35 | 2.90 |
| 36 | 2.98 |
| 37 | 3.06 |
| 38 | 3.15 |
| 39 | 3.23 |
| 40 | 3.32 |
| 41 | 3.40 |
| 42 | 3.49 |
| 43 | 3.57 |
| 44 | 3.65 |
| 45 | 3.74 |
| 46 | 3.82 |
| 47 | 3.91 |
| 48 | 3.99 |
| 49 | 4.08 |
| 50 | 4.16 |
| 51 | 4.25 |
| 52 | 4.33 |
| 53 | 4.42 |
| 54 | 4.51 |
| 55 | 4.59 |
| 56 | 4.68 |
| 57 | 4.76 |
| 58 | 4.85 |
| 59 | 4.93 |
| 60 | 5.02 |
| 61 | 5.11 |
| 62 | 5.20 |
| 63 | 5.28 |
| 64 | 5.37 |
| 65 | 5.46 |
| 66 | 5.55 |
| 67 | 5.63 |
| 68 | 5.72 |
| 69 | 5.81 |
| 70 | 5.90 |
| 71 | 5.98 |
| 72 | 6.07 |
| 73 | 6.16 |
| 74 | 6.25 |
| 75 | 6.34 |
| 76 | 6.42 |
| 77 | 6.51 |
| 78 | 6.60 |
| 79 | 6.69 |
| 80 | 6.78 |
| 81 | 6.87 |
| 82 | 6.95 |
| 83 | 7.04 |
| 84 | 7.13 |
| 85 | 7.22 |
| 86 | 7.31 |
| 87 | 7.40 |
| 88 | 7.49 |
| 89 | 7.58 |
| 90 | 7.68 |
| 91 | 7.77 |
| 92 | 7.86 |
| 93 | 7.95 |
| 94 | 8.04 |
| 95 | 8.13 |
| 96 | 8.22 |
| 97 | 8.31 |
| 98 | 8.41 |
| 99 | 8.50 |
| 100 | 8.59 |
| 101 | 8.68 |
| 102 | 8.78 |
| 103 | 8.87 |
| 104 | 8.96 |
| 105 | 9.05 |
| 106 | 9.15 |
| 107 | 9.24 |
| 108 | 9.33 |
| 109 | 9.33 |
| 110 | 9.33 |
| 111 | 9.33 |
| 112 | 9.33 |
| 113 | 9.33”. |
[F. No. S-65015/01/2024-SS-II]
ALOK MISHRA, Jt. Secy.
Note: The Employees’ Pension Scheme, 1995 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 748(E), dated the 16th November, 1995 and was last amended vide notification number S.O. 2061 (E), dated the 3rd May, 2023.
