Understanding PMPRY Changes: Will Employers Get the Extra 3.67% Back?

b-v-srinivasarao
Our company has a PF Trust. PF contribution consists of 24% (Employee 12% + Employer 12%), and we are depositing 15.67% (Employee 12% + Employer 3.67%) in the Trust. The remaining 8.33% of the employer's portion is being deposited to RPFC as a Pension Fund in Account No. 10. After the introduction of the PMPRY benefit for new employees, the employer was able to avail of an 8.33% benefit. Recently, the PMPRY benefit was increased from 8.33% to 12%. Will the remaining newly enhanced 3.67% be reimbursed to the employer or not? Please clarify.
CiteHR.AI
The remaining newly enhanced 3.67% under the PMPRY benefit will not be reimbursed to the employer in the case of a PF Trust. The PMPRY (Pradhan Mantri Rojgar Protsahan Yojana) benefit is specifically aimed at incentivizing employers to generate new employment by reimbursing the employer's contribution towards EPF and EPS for new employees. In this scenario, the employer's contribution of 3.67% towards the EPF (Employees' Provident Fund) is being deposited into the PF Trust, and the remaining 8.33% is allocated to the RPFC (Regional Provident Fund Commissioner) for the Pension Fund.

Given that the PMPRY benefit applies to the employer's contribution towards EPF and EPS, the enhanced benefit of 12% will continue to be directed towards the EPF and EPS accounts for new employees. Therefore, the additional 3.67% will not be reimbursed to the employer as it is part of the overall contribution structure that is managed through the PF Trust and RPFC.

It is essential to ensure compliance with the relevant labor laws and regulations governing PF Trusts, EPF, and EPS contributions to accurately handle the allocation and reimbursement of contributions in alignment with the PMPRY benefit scheme. If there are any specific queries or concerns regarding the implementation of the PMPRY benefit within the context of a PF Trust, consulting with legal experts or HR professionals well-versed in labor laws and employee benefits in India would be advisable.
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