The e-nomination process was revamped in 2020, and the EPFO now prioritizes e-nominations when processing death claims. If an e-nomination is not completed or family details are outdated, the claimant may face significant challenges in accessing benefits.
E-nomination ensures a seamless transfer of the EPF member’s provident fund contributions, accrued interest, EDLI benefits, and pension to the nominated individual in the unfortunate event of the member’s demise.
Previously, nomination updates were made through Form 2, which had to be submitted by the employer to the EPFO. Today, the process is much simpler—members can add or update nominees directly by logging into the EPF Member Portal.
Checklist for EPFO Nominee Update
Prior to updating or modifying the EPF nominee details, members must ensure the following prerequisites are met
Important points around addition or change in e-nominee
· The process to update an EPF nominee online is the same as adding an e-nomination.
· Adding a new nominee automatically overrides the existing nomination.
· If a member wants to add an additional nominee (e.g., add a child along with an already-nominated spouse), all nominees must be added again together.
· If only the new nominee is added (e.g., only the child), the previously nominated person (spouse) will be removed automatically.
· Therefore, whenever a member adds a new nominee, the details of existing nominees must be re-entered to keep them as nominees.
· To change a nominee or update nominee details, members do not need to delete the old nomination.
· Members can directly add a new nominee or update the details of an existing nominee, and EPFO will treat the latest submission as valid, while earlier nominations become invalid.
Definition of Family (as per EPF Act, 1952)
Under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, “family” is defined as follows:
For a Male EPF Member:
For a Female EPF Member:
Here's a step-by-step guide to the process:
1. Visit the EPFO portal: Go to the EPFO Member e-Sewa portal.
https://unifiedportal-mem.epfindia.gov.in/memberinterface/
2. Login: Use your UAN (Universal Account Number), password, and the captcha to log in.
3. Navigate to e-Nomination: Under the 'Manage' tab, select the 'E-Nomination' option.
4. Provide Family Details: The system will prompt you to declare your family members. Select 'Yes' if you have family members and enter their details (name, relationship, date of birth, gender, address, photo, and Aadhaar number). You can add multiple nominees.
5. Declare Nomination Details: Specify the percentage share of the EPF amount for each nominee, ensuring the total adds up to 100%.
6. Save and E-sign: Save the nomination details and then proceed with the 'e-sign' process using your Aadhaar-linked mobile number for OTP verification.
7. Completion: Once the OTP is verified, your e-nomination will be successfully registered on the EPFO portal.
𝐒𝐭𝐚𝐭𝐮𝐭𝐨𝐫𝐲 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐚 𝐥𝐞𝐠𝐚𝐥 𝐟𝐨𝐫𝐦𝐚𝐥𝐢𝐭𝐲—𝐢𝐭 𝐢𝐬 𝐚 𝐟𝐨𝐮𝐧𝐝𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚. Compliance with labour and HR laws protects employee rights, ensures workplace safety, and shields businesses from legal penalties, financial losses, and reputational damage. Ignoring compliance can lead to loss of employee trust, heavy fines, legal disputes, cancelled contracts, and negative brand image. Businesses that treat compliance seriously are seen as ethical, reliable, and professional. By understanding applicable laws, maintaining proper records, training HR teams, conducting regular audits, and investing in compliance expertise, organisations can build a strong compliance culture. In today’s transparent and competitive environment, strong statutory compliance directly translates into 𝐬𝐭𝐫𝐨𝐧𝐠 𝐬𝐭𝐚𝐭𝐮𝐭𝐨𝐫𝐲 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐝𝐢𝐫𝐞𝐜𝐭𝐥𝐲 𝐭𝐫𝐚𝐧𝐬𝐥𝐚𝐭𝐞𝐬 𝐢𝐧𝐭𝐨 𝐬𝐭𝐫𝐨𝐧𝐠 𝐫𝐞𝐩𝐮𝐭𝐚𝐭𝐢𝐨𝐧, 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞 𝐥𝐨𝐲𝐚𝐥𝐭𝐲, 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐬𝐮𝐜𝐜𝐞𝐬𝐬.
Professional Tax is a state-imposed levy on income earned through employment, profession, trade, or any form of vocation in India. Its origins trace back to the Government of India Act, 1935, which first empowered provincial governments to tax professions and trades.
Post-Independence, this authority was reaffirmed through Article 276 of the Indian Constitution, which enables state governments—and, in certain cases, local bodies—to levy a tax on professions, trades, callings, and employments. At the time of its introduction, the maximum permissible tax was capped at ₹250 per year.
A major change came with the 60th Constitutional Amendment Act, 1988, which revised the ceiling and increased the maximum limit of Professional Tax to ₹2,500 per annum, allowing states greater fiscal flexibility.
Today, 22 states and one Union Territory levy Professional Tax, each following its own prescribed
𝐄𝐒𝐈𝐂’𝐬 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝐔𝐩𝐝𝐚𝐭𝐞𝐬: 𝐀 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐭 𝐑𝐨𝐚𝐝𝐦𝐚𝐩 𝐭𝐨 𝐭𝐡𝐞 𝐍𝐞𝐰 𝐒𝐨𝐜𝐢𝐚𝐥 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐂𝐨𝐝𝐞
1. 𝐄𝐧𝐡𝐚𝐧𝐜𝐢𝐧𝐠 𝐀𝐰𝐚𝐫𝐞𝐧𝐞𝐬𝐬 𝐚𝐧𝐝 𝐑𝐞𝐚𝐝𝐢𝐧𝐞𝐬𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐍𝐞𝐰 𝐒𝐨𝐜𝐢𝐚𝐥 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐂𝐨𝐝𝐞
Through its SPREE outreach on December 11, ESIC encouraged employers to start preparing for the forthcoming Social Security Code by streamlining employee data, understanding the updated wage definition, and reviewing anticipated reforms. The message emphasized positive shifts such as preventive health check-ups for employees aged 40+ and extended dependant coverage. Importantly, this engagement aimed at building early awareness rather than enforcing any immediate compliance.
Subsequently, on December 18, ESIC issued a clarification confirming that no mandatory registrations or compliance actions are required until the Central Government formally notifies the Rules. This reassurance eliminated uncertainty sparked by the initial communication and prevented unnecessary year‑end administrative actions. Employers now have the clarity and time required to plan system transitions smoothly and strategically.
2. 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐂𝐥𝐞𝐚𝐫 𝐖𝐚𝐠𝐞 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐚 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐯𝐞 𝐅𝐨𝐫𝐰𝐚𝐫𝐝 𝐏𝐚𝐭𝐡
The December 15 wage notifications introduced much‑needed clarity by specifying that ESIC contributions will be calculated based on Basic + DA, explicitly excluding variable pay elements. This creates sector‑wide consistency and ensures predictability for both contributions and benefits. While some employers may need to recalibrate financial structures, employees benefit from more stable and predictable social security entitlements.
Taken together, these December developments demonstrate a steady, reform-oriented approach by ESIC—balancing employer preparedness with enhanced worker protections, including for gig and unorganized sector workers. As formal Rules are awaited, employers and employees can anticipate a stronger, more inclusive, and future‑ready social security ecosystem leading up to the targeted 2026 implementation.
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