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Retirement Claims to be Settled on the Day of Retirement

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Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement 

Press Information Bureau 
Government of India
Ministry of Labour & Employment

18-November-2016 11:25 IST

Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement 

Payment of Statutory Contributions Henceforth only through Internet Banking 

The Prime Minister of India during the PRAGATI review meeting held on 26th October desired that claims related to death cases be prioritized and expedited and retirement claims may be settled on the day of retirement. In accordance, the processes have been reviewed and instructions have been issued to field offices to settle death claims within a period of 07 days from the date of receipt of proposal and retirement claims on the day of retirement. The officials in the facilitation centre of field offices have been instructed to scrutinize the claims and guide the claimant regarding submission of required documents in appropriate shape. An official has been posted in the facilitation centers of EPFO this category of claims.

Employers are now increasingly using internet banking to deposit statutory EPF dues since EPFO made it mandatory to use internet banking as the mode of receipt of EPF dues. 96.03% contributions in October 2016 were received online.

In an important judgment delivered by the High Court of Madras in the matter of writ petition filed by Builders Association of India, Madurai, the High Court dismissed the petition praying non enforcement of EPF & MP Act, 1952 every employee employed in or in connection with the work or that factory or establishment, other than an excluded employee, who has not become a member already shall also be entitled and required to become a member of the Fund from the date of joining the factory or establishment.

To expand the reach of convenience offered to EPF members, EPFO has joined the network of Common Services Centers (CSC). A Memorandum of understanding (MoU) has been signed between EPFO and CSC e-Governance Services India Limited (CSC SPV) on 25th October 2016. The MoU is initially for a period of five years. Every year on 14st November, pensioners were required to submit their life certificates. From this year onward, pensioners can submit digital life certificates via Jeevan Pramaan Patra programme through a large number of points of Presence (PoP) of CSC network in addition to those available at EPFO offices. The pensioners living in remote areas can avoid cost and inconvenience of travelling down to the EPF offices or their banks for filing paper based life certificate through this arrangement.

Source: PIB News

Abolition of Overtime Allowance in 7th Pay Commission

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Abolition of Overtime Allowance in 7th Pay Commission

The expenditure of Rs.796.90 crore in 2006-07 was excluding the expenditure on overtime allowance in respect of employees of Union Territories whereas the expenditure of Rs. 1629.02 crore during year 2012-13 is including the expenditure in respect of employees of Union Territories. 

The Seventh Central Pay Commission has recommended to abolish OTA (except for operational staff and industrial employees who are governed by statutory provisions) and in case the Government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels. Recommendation of the 7th CPC on allowances are yet to be finalised. 

This above information was given by Minister of State for Finance (Expenditure) Shri Arjun Ram Meghwal in a written reply in Lok Sabha on 18.11.2016.

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