EPFO’s Admin Charges Refund Incentive for Employers promoting UAN

EPFO to refund Admin Charges to Employers promoting UAN with 100% seeded KYC

The Ministry of Labour & Employment has notified a scheme on 10th Feb 2016 for employers wherein the Admin Charges are proposed to be refunded where substantial number of PF accounts of employees have been made UAN based.

In exercise of the powers conferred by the Explanation to paragraph 30 read with paragraph 39 of the Employee’s Provident Funds Scheme, 1952 and in partial modification of the notification of the Government of India in the Ministry of Labour and Employment number S.O. 323 (E), dated the 2nd February, 2015, published in the Gazette of India, Part II, Section 3, Sub-section (ii), dated the 2nd February, 2015, the Central Government, after consulting the Central Board and having regard to the resources of the Employee’ s Provident Fund available for meeting its normal administrative expenses, hereby frames an “Incentive Refund Scheme” in respect of administrative charges deposited for eligible employer for providing Universal Account Number (UAN) to all employees.

Incentive Refund Scheme A: 

To claim 10% refund of administrative charges paid during the quarters, the eligible establishment has to achieve the following criteria relating to UAN in respect of its contributing members in each of the month falling in the quarter:-

(i) providing member’s details as required under Form No. 11 (New) (80% or above);

(ii) seeding of all the three i.e. AADHAR (at least 80% of (i) above), Bank A/c {100 percent of (i) above} and PAN (wherever applicable);

(iii) UAN activation {100% of (i) above}.

Incentive Refund Scheme B: 

To claim 5% refund of administrative charges paid during the quarter, the eligible establishment has to achieve the following criteria relating to UAN in respect of its contributing members in each of the month falling in the quarter:

(a) providing member’s details as required in Form No. 11 (New ) {60 % or above };

(b) seeding of AADHAR {70 % of (a) above}; Bank A/c {80 % of (a) above} and PAN (wherever applicable);

(c) UAN activation {60 percent of (a) above}.

The incentive by way of refund shall be payable at the end of every quarter starting from quarter ending March, 2016, as per procedure prescribed by the Central Provident Fund Commissioner and only such establishments shall be considered eligible for the scheme of refund which have in each month of the quarter achieved the criteria for qualification either in Incentive Refund Scheme ‘A’ or Incentive Refund Scheme ‘B’.

The Incentive Refund Scheme shall be in operation for one year, i.e. 1 Jan 2016 ~ 31 Dec 2016 (for the quarters beginning January, 2016, April, 2016, July, 2016 and October, 2016).

EPFO Notification dt. 29th Feb 2016

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