Shared based on the recent Govt Notification No 1352 dt May 18 2020 – PF Contribution reduction from 12% to 10% for the Period May, June July 2020.
Therefore, in exercise of powers conferred by first proviso to section 6 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government, after making aforesaid inquiry, hereby makes the following amendments in the said notification number S.O. 320 (E) dated the 9th April, 1997
Brief of S.O 320 (E) dt 9/4/1997
S.O 320(E), dated April 9, 1997
In exercise of the powers conferred by the first proviso to Section 6 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of the notifications specified in Schedule I to this notification except as respects things done or omitted to be done before such supersession, the Central Government after making necessary inquiry into the matter hereby specifies with effect form the first day of May, 1997 every establishment and class of establishments other than those specified in Schedule II, to which the said proviso shall apply, the works “eight and one-third percent at both the places where they occur, the works “ten percent” shall be substituted.
SCHEDULE I
(i) S.O. No. 360 dated the 17th May, 1989
(ii) S.O. No. 1837 dated the 29th June, 1990
(iii) S.O. No. 627(E) dated the 31st August, 1994
(iv) S.O. No. 126(E) dated the 1st March, 1995
SCHEDULE II
Establishments to which the first proviso to Section 6 shall not apply:
(i) Any establishment in which less than twenty persons are employed ;
(ii) Any sick industrial company as defined in clause (o) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) and which has been declared as such by the Board for Industrial and Financial Reconstruction established under Section 4 of the Act, for the period commencing on and form the date of registration of the reference in the Board and ending either on the date by which the net worth of the said company becomes positive in terms of the orders passed under sub-section (2) of Section 17 of that Act or on the last date of implementation of the scheme sanctioned under Section 18 of that Act ;
(iii) Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth that is, the sum total of paid-up capital and free reserves and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.
Explanation.---For the purposes of clause (iii) “cash loss” means loss as computed without providing for depreciation;
(iv) Any establishment in the,---
(A) Jute industry;
(B) Beedi industry;
(C) Brick industry;
(D) Coir industry other than the spinning sector; and
(E) Gaur gum factories.
SUMMARY OF RATES APPLICABLE ON VARIOUS DATES
I. Till 30-4-1997
1. To all units employing upto 49 persons -8.33%
2. To all units having 50 or more employees engaged in industries or activities notifies in the Schedule in S.O. 360(E), dt. 17-5-1989 (given above on p.609) except those exempted by its proviso- 10%
3. To all units exempted by the proviso to S. O. 360(E), dt. 17-5-1989 8.33%
4. To all units employing 50 or more persons engaged in industries or activities not included in the Schedule to S.O. 360(E), dt. 17-5-1989 8.33%
II. Form 1-5-1997 to 21-9-1997
1. To all units employing upto 19 persons 8.33%
2. To all units falling in Sch. II of S.O. 320(E), dt. 9-4-1997, including the Jute, Beedi and Brick Industries, Coir industry (other than spinning sector), and Gaur gum factories, even if employing 20 or more persons 8.33%
3. All units employing 20 or more employees except those industries or units excluded by Sch. II of S. O. 320(E), dt. 9-4-1997 10%
III. Form 22-9-1997
Section 6 as amended by Act 10 of 1998 w.e.f. 22-9-1997 prescribes the rate of contribution at 10%. This, in effect, supersedes the notification S.O. 320(E), dt 9-4-1997. Hence, the rate of 10%. would, form 22-9-1997, apply to all the establishments till a new notification is issued by the Central Government under the first proviso to Section 6 enhancing this rate of contribution to 12% in respect of the establishments as may be specified in that notification.
The above is shared for learning and understanding purpose.
