KartavyaDesk

Rule 119 - Contribution Remittance | KartavyaDesk

FR/SR

Original Rule Text

remit the contributions due in any specified case or class of cases; and (b) make rules prescribing the rate of interest, if any, to be levied on overdue contributions.

What This Means

Rule 119 of the Fundamental and Supplementary Rules grants the government the power to handle contributions related to government schemes and funds. Specifically, it allows the government to waive or reduce contributions that are normally required in certain situations or for specific groups of employees. Think of it as a safety valve, allowing flexibility when strict adherence to contribution rules might cause undue hardship or be counterproductive. This could apply during a natural disaster, or for a specific category of low-income employees.

Furthermore, Rule 119 empowers the government to set the interest rate charged on late contributions. This ensures that there's a financial incentive for employees to pay their contributions on time. The interest rate is not fixed; the government can adjust it based on prevailing economic conditions and the specific scheme involved. This part of the rule is important for maintaining the financial health of government-run funds and ensuring fairness to those who pay on time.

In essence, Rule 119 provides the government with the necessary authority to manage contributions effectively, balancing the need for consistent funding with the flexibility to address exceptional circumstances and encourage timely payments.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Government can remit (waive or reduce) contributions in specific cases or for classes of cases.
  • •Government can prescribe the rate of interest on overdue contributions.
  • •Rule provides flexibility in managing contributions to government schemes.
  • •The rule aims to balance financial stability with employee welfare.

Practical Example

During a severe flood in Kerala, the state government decides to remit the General Provident Fund (GPF) contributions for all Group D employees for a period of three months. This is done under Rule 119 to provide immediate financial relief to these employees who have been severely affected by the disaster. Simultaneously, the government also announces that a 10% annual interest will be levied on GPF contributions that are delayed beyond the stipulated deadline, ensuring that employees are incentivized to pay on time under normal circumstances. Mr. Sharma, a Group D employee, benefits from the remittance, while Ms. Verma, who consistently pays her GPF on time, is assured that late payers will face a financial penalty.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Can the government completely waive all contributions under Rule 119?▼
Yes, the government has the power to remit contributions entirely, partially, or for a specific period, depending on the circumstances.
Does Rule 119 specify the exact interest rate for overdue contributions?▼
No, Rule 119 only empowers the government to *prescribe* the interest rate. The specific rate is usually detailed in the rules of the particular fund or scheme.
Who decides whether to remit contributions in a specific case?▼
The authority to remit contributions rests with the government, typically exercised through a designated department or official, as per the relevant rules and regulations.
Is there a limit to how high the interest rate on overdue contributions can be?▼
While Rule 119 doesn't specify a limit, the interest rate must be reasonable and justifiable, considering prevailing economic conditions and the purpose of the fund.
Does Rule 119 apply to all types of government employee contributions?▼
Yes, Rule 119 applies broadly to contributions to various government-managed funds and schemes, such as GPF, CPF, and other similar funds.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Fundamental Rule 119, which of the following actions is the government empowered to take regarding contributions?

Related Rules

Rule 36Fundamental Rules & Supplementary Rules - Rule 36 - Chapter IIRule 10Fundamental Rules & Supplementary Rules - Rule 10 - Chapter IIRule 1Fundamental Rules & Supplementary Rules - Rule 1Rule 114Fundamental Rules & Supplementary Rules - Rule 114 - Chapter VIIRule 113Fundamental Rules & Supplementary Rules - Rule 113 - Chapter VII

Need help understanding this rule?

Ask Niti — your AI assistant for FR/SR and other government rules