We are pleased to release Volume 7 of our Labour Law Insights. This edition covers updates and amendments regarding labour law regulations, EPFO updates and important judgements. This newsletter provides comprehensive insights on changes in minimum wages, other benefits and EPFO updates.
Key insights
- The Labour and Skills Department has issued the revised minimum rate of wages payable to the employees employed in medical shops in Kerala. The minimum wages are eligible to be paid to sales representatives based on the purchase order canvassed by them.
- Non-governmental organisations in Gurugram must submit their annual report for the calendar year 2024 under the PoSH Act, 2013, by February 28, 2025, as mandated by the District Officer's order.
- The Uttar Pradesh Labour Department emphasises that IT and ITES establishments in the state must be aware of the conditions under which exemptions from Section 6 and Section 7 of the Uttar Pradesh Dookan Aur Vanijya Adhishthan Adhiniyam, 1962, have been granted for a period of two years.
- To improve justice delivery, the government of West Bengal has extended the jurisdiction of certain courts and their presiding officers, empowering them to handle cases under key labour laws and manage cases across different courts to ensure quick and efficient resolution of disputes.
- Over the past few months, the Department of Labour has implemented several measures to enhance digitisation and ease of doing business. The amendment to the Rajasthan Private Security Agencies (Regulation) is an additional step to facilitate the submission of Form-I applications (for grant/renewal of licenses) and payment for the same through the Private Security Agency Licensing Portal (PSARA).
EPFO updates
- The EPFO has issued a circular (E-27878) HRD/1(71)/2020/Misc./pt./1148 dated 7 November 2024 regarding the revision of rates of dearness allowance (DA) to Central Government pensioners/family pensioners. The circular has been issued for the information and necessary action of the beneficiaries pursuant to the office memorandum dated 30 October 2024 issued by the Ministry of Personnel, Public Grievances & Pensions, government of India. The circular states that the rates of dearness allowance to central government pensioners / family pensioners shall be enhanced from 50% to 53% of the basic pension / family pension, with effect from 1 July 2024. The government made clear that these orders shall also apply to civilian central government pensioners, armed forces pensioners, All India Service pensioners, etc.
- By adopting budget heads that align with the object heads used by the Government of India, the EPFO is standardising its financial reporting. This alignment can enhance consistency and comparability with other government financial reporting standards. While expenditures will be tracked at both the main and sub-budget head levels, appropriations will be made at the main budget head level. This approach provides flexibility, enabling funds to be used across various sub-budget heads as needed, which is expected to enhance operational efficiency.
- The Central Government has mandated the use of Aadhaar-based mechanism to enhance transparency, efficiency, and seamless delivery of welfare benefits. Employers must facilitate this process by guiding employees to activate UANs through the EPFO member portal. The EPFO, in compliance with the directions of the Ministry, has released a circular giving instructions to the employers covered under the EPFO. The Ministry has also notified that biometric authentication, including face recognition, will be introduced in the next phase to strengthen the system further.
- These initiatives aim to enhance social security, improve worker welfare, and contribute to India’s growth trajectory toward Viksit Bharat. The Ministry’s focus on improving IT infrastructure and its capacity displays the government’s commitment to the implementation of the Employee Linked Incentive (ELI) scheme as part of Atmanirbhar Bharat. The press release underscores the government’s proactive approach to labour welfare, employment generation, and social security through these initiatives.
- The circular aims to address a longstanding challenge faced by a certain segment of members in withdrawing the accumulated balance in the absence of Aadhaar. Indian workers settled abroad permanently used to face challenges with withdrawing their PF due to non-availability of Aadhaar or non-seeding of Aadhaar, causing significant delay in claim settlements. By allowing claim settlements without Aadhaar seeding in specific cases, the EPFO has sought to address such challenges, while maintaining procedural safeguards. These measures reinforce the EPFO's efforts towards reducing member grievances and safeguarding members’ interests.
