India witnessed over 700 updates in labour compliance regulations in 2024, reflecting the government’s commitment to employee welfare, streamlined compliance, and equitable work environments.
These reforms address interest calculation under the EPF scheme, penalty structures for delayed contributions, pension amendments, equal opportunity policies for transgender individuals, and an amnesty scheme for EPFO defaults.
These changes aim to modernize labour laws, ensuring fair treatment, financial security, and improved workplace inclusivity.
Below are the five most significant labour compliance updates introduced in 2024.
1. Changes in EPFO Interest Calculations
A November 30, 2024, EPFO press release revised the interest calculation method for claims settled between the 25th and the end of each month.
Previously, interest on EPF balances was only paid up to the end of the previous month, causing members to lose interest for the days between the start of the current month and the settlement date.
With the amendment to paragraph 60(2)(b) of the EPF Scheme, 1952, members will now receive interest up to the actual settlement date, ensuring fairer financial benefits for EPF account holders.
2. Simplification of Penalties for Delayed EPF, EPS, and EDLI Contributions
The Ministry of Labour and Employment revised the Employees’ Provident Funds Scheme, 1952, introducing a uniform penalty structure for delayed contributions.
Effective June 14, 2024, employers are charged a 1% penalty on arrears per month or part thereof.
Previously, penalty rates varied based on the duration of the delay, leading to uncertainty and financial burden for employers.
The simplified penalty structure ensures greater transparency and predictability in compliance.
3. Employees’ Pension (Amendment) Scheme, 2024
The Employees’ Pension (Amendment) Scheme, 2024, introduced new actuarial factors for early retirement (before age 42) and revised the pension payout structure.
The updated Table D specifies the proportion of wages returned to employees based on their length of service.
This revision enhances transparency and ensures fairness in pension calculations.
These changes aim to modernize pension benefits, ensuring financial security for retirees.
4. Equal Opportunity Policy for Transgender Persons
New guidelines mandate employers to adopt equal opportunity policies for transgender individuals, ensuring fair treatment, non-discrimination, and workplace inclusivity.
The policy establishes a robust grievance redressal mechanism, protecting transgender employees from harassment and bias.
This initiative aligns with India’s broader push for workplace diversity and inclusion, fostering equitable employment opportunities.
5. EPFO Amnesty Scheme, 2024
The EPFO Amnesty Scheme 2024 assists employers in settling outstanding Provident Fund (PF) contributions.
The scheme offers concessions and relief for employers who have defaulted on EPF contributions, allowing them to clear dues with reduced penalties.
This initiative encourages compliance and financial accountability, benefiting both employers and employees.
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