**Executive Summary**
Circular No. 1 of 2017, dated March 24, 2017, from the Seamen's Provident Fund Organization, reiterates the requirement for Shipping Companies and RPSL Agents to remit Provident Fund contributions for all seafarers, as per Section 2(1) of the SPF Act 1966. It also addresses the retention of contributions by some companies and warns of potential action against directors for non-compliance. This follows up on Circular No. 137-II/309/2015 dated 18th May, 2015
**Key Points / Main Content**
* **Provident Fund Contributions:**
* Shipping Companies must remit Provident Fund contributions for all seafarers as per Section 2 (1) of the SPF Act, 1966.
* This includes officers, excluding Welfare Officer, Nurse, Musician, Pilot, and Deck Barber.
* Contributions must be remitted as per Para 26 (3) & (4) of the Seamen's Provident Fund Scheme 1966 including Officers with effect from May 2015.
* **Retention of Contributions:**
* Shipping Companies must immediately transfer any retained Provident Fund contributions of seafarers for past periods without fail.
* **Consequences of Non-Compliance:**
* Ignoring these directions may lead to action against the company directors under the Proviso of Para 66 (b) & (c) of the Seamen's Provident Fund Scheme, 1966.
**Impact Analysis**
**Stakeholder: Shipping Companies/RPSL Agents**
* **Impact:** Required to ensure proper and timely remittance of Provident Fund contributions for all seafarers and to immediately transfer any retained contributions.
* **Action Required:** Take necessary action to remit Provident Fund contributions as per the SPF Act, including contributions for Officers from May 2015, and transfer retained contributions immediately.
Key Entities Referenced
Seamen's Provident Fund Scheme, 1966: The core scheme governing provident fund contributions for seafarers, referenced for compliance and potential penalties.
SPF Act 1966: The primary legislation mandating Provident Fund contributions for seafarers, specifically Section 2 (1) and (n)(i) & (ii).
Seamen's Provident Fund Organization: The administrating body responsible for managing and overseeing the Provident Fund of Seamen
Ministry of Shipping: The government ministry overseeing the Seamen's Provident Fund Organization.
Shipping Companies: The entities directly impacted by the circular, as they are responsible for remitting Provident Fund contributions.
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Ref No 137ilU 4qg t2017
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CIRCULAR No. 1 of 2017
ln continuation tothis office Circular No. 137-lll3Ogt2O15 dated 18th May, 2015 (copy
enclosed). lt is further observed that Shipping Companies are still not remitting the Provident
Fund contribution as per Section 2 (l) of the SPF Act 1966 of all seamen engaged by them
on their vessels. ln this connection it is reiterated that the said Section covers Seafarers
including all Officers except Welfare Officer, Nurse, Musician, Pilot and Deck Barber.
2. Further it is also observed that some Shipping Companies are retaining the Provident
Fund Contributions of the seafarers engaged by them.
3. All Shipping Companies/RPsl Agents are therefore once again and finally directed to
take necessary action for the Provident Fund Contributions of all the Seafarers/Seamen as
per the Section 2 (l) of the SPF Act, 1966 and remit the Provident Fund contribution as per
Para26 (3) & (4) of the Seamen's Provident Fund Scheme 1966 and including officers w.e.f.
May 2015 as per said Circular of this office dated 18.05.15. The Shipping Companies are
also directed to immediately transfer the Provident Fund Contributions of the seafarers
retained by them for the past period without fail.
4 lt may please be noted that ignoring the above directions may lead to initiate action
against your Directors under the Proviso of Para 66 (b), & (c) of Seamen's Provident Fund
Scheme,1966.
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Seamen's Provident Fund Organiffilff
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All Shipping Companies,
Copy for information to:
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OFFIf,E OF THE $EAMEN'S PRSYIDENT FI.IND COMMI$SIONTR
{Urrder Ministry of Shipping}
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It has been sbservecl by ihe lnternal Auditors of tnJ/d"g*n*id-r, as welf as
CAG Auditers that slaily shipping companies do not remil the Frcvident Fur"rd
contributlon as per Para 26 (3) & q4) of the $eamen's Provident Fund $cherne 196S.
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lt hns ;rlso bee,t pointed out that $hipping Companies while calcr"rlating lhe
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Provident Fund doesn t calculate the FF a* p*r the Section 2 (n) {ii & (ii) of the $PF
Act 19SS.
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Further the *hipping cor?'lpanies remittingr.Provident Fund nontributior: cn
volunlary hasis are not attac*ing copy of aff TCS/CBAI|TF Agreem*nt *r
ntentionir"tg the appllcabte rat* fixed per month for Pr*vident Fund & Annuity far
remitting the contributions dr-re to which the total renrittance cor-rld. not be crsss
ve;'ified.
4.
lt is fherefore r!-.J.tested that all concern*d shipping ccmpani*s while rernitting
the pF cs*ttibution to the Organization should provide the following information.
a) All remit. lnces o1 Provident Fund should be as per $*rtron 2 {n} {i} &
{ii} anrl Fara 26 of the Saamen Providenl Fund Act & $*heme 19$S
h) Shipping con.lpanies renritting Proviclent FuneJ contributions oil
voluntary basis shsuld attach copy of any TCC/CBAJITF Agreement cr
mention tlie applicable rate fixed per mo*th for Provident Fund *
Annuily so that renriitance csuld be cross verified.
ln ca*e, if any erors are noticed the chequelstatements wlll
the company
Cr:ntrnissi***r,
$eamen's Fravtclent Fr"rnd Organieati*n,
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