Can anyone tell me about PF AND ESIC. I want the latest rules and regulations for PF, ESIC. Kindly reply me as soon as possible.
From India, Indore
From India, Indore
Dear Abhishek,
For Provident Fund
Employer
Coverage:
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Contributions:
Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,).
Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
A matching contribution is to be collected from the salary of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.
Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLI 1976.
Administrative Charges:
An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
No separate administrative charges for pension scheme
Inspection Charges:
In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Duties of Employer
Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.
Remit the contributions and administrative charges before the 15th of the following month.
File the initial returns of Form 9, Form 3(P.S.), form 5A.
File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.
The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed.
Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.
Make available all relevant records for inspection of visiting officials with due authorisation.
Exemptions under the Schemes
Provident Fund:
An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.
Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Pension Scheme:
Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.
There is no provision for exemption of individuals or for class of employees.
EDLI Scheme:
The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.
EMPLOYEES’ STATE INSURANCE SCHEME OF INDIA
Employees’ State Insurance Scheme of India, is an integrated social security scheme tailored to provide social protection to workers in the organised sector and their dependants in contingencies, such as, sickness, maternity or death and disablement due to an employment injury or occupational disease. The scheme has been made to suit health insurance requirements of workers provides full medical facilities to insured persons and their dependants, as well as, cash benefits to compensate for loss of wages or earning capacity in different contingencies.
CONTRIBUTION:
The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers, as a fixed percentage of wages. As of now, the rates of contribution are:-
(i) Employees’ Contribution : 1.75 percent of wages
(ii) Employers’ Contribution : 4.75 percent of wages
Employees’ earning upto Rs.50/- a day as wages are exempted from payment of their part of contribution.
WAGE CEILING:
Employees of covered units and establishments drawing wages upto Rs.10,000/- per month come under the purview of the ESI Act, 1948.
BENEFITS:
The Act envisages following six social security benefits :-
(a) Medical Benefit
(b) Sickness Benefit(SB)
i) Extended sickness Benefit(ESB)
ii)Enhanced Sickness Benefit
(c) Maternity Benefit(MB)
(d) Disablement Benefit
i) Temporary disablement benefit(TDB)
ii)Permanent disablement benefit(PDB)
(e) Dependants’ Benefit(DB)
(f) Funeral Expenses
From India, New Delhi
8For Provident Fund
Employer
Coverage:
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Contributions:
Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,).
Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
A matching contribution is to be collected from the salary of the employees.
Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards pension fund.
Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLI 1976.
Administrative Charges:
An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
No separate administrative charges for pension scheme
Inspection Charges:
In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Duties of Employer
Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.
Remit the contributions and administrative charges before the 15th of the following month.
File the initial returns of Form 9, Form 3(P.S.), form 5A.
File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.
The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed.
Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.
Make available all relevant records for inspection of visiting officials with due authorisation.
Exemptions under the Schemes
Provident Fund:
An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.
Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Pension Scheme:
Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS ’95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.
There is no provision for exemption of individuals or for class of employees.
EDLI Scheme:
The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.
EMPLOYEES’ STATE INSURANCE SCHEME OF INDIA
Employees’ State Insurance Scheme of India, is an integrated social security scheme tailored to provide social protection to workers in the organised sector and their dependants in contingencies, such as, sickness, maternity or death and disablement due to an employment injury or occupational disease. The scheme has been made to suit health insurance requirements of workers provides full medical facilities to insured persons and their dependants, as well as, cash benefits to compensate for loss of wages or earning capacity in different contingencies.
CONTRIBUTION:
The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers, as a fixed percentage of wages. As of now, the rates of contribution are:-
(i) Employees’ Contribution : 1.75 percent of wages
(ii) Employers’ Contribution : 4.75 percent of wages
Employees’ earning upto Rs.50/- a day as wages are exempted from payment of their part of contribution.
WAGE CEILING:
Employees of covered units and establishments drawing wages upto Rs.10,000/- per month come under the purview of the ESI Act, 1948.
BENEFITS:
The Act envisages following six social security benefits :-
(a) Medical Benefit
(b) Sickness Benefit(SB)
i) Extended sickness Benefit(ESB)
ii)Enhanced Sickness Benefit
(c) Maternity Benefit(MB)
(d) Disablement Benefit
i) Temporary disablement benefit(TDB)
ii)Permanent disablement benefit(PDB)
(e) Dependants’ Benefit(DB)
(f) Funeral Expenses
From India, New Delhi
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