What is the new provident fund rate in india? Can anyone clarify my doubt on this? And ESI? Thanks & Regards, Robert
From India, Selam
6From India, Selam
Hi, PF is 12% of the wages both Employer and Employee have to contribute, the deduction rate is same and for ESIC the Employers contribution is 4.75% and Employees Contribution is 1.75%
From India, Mumbai
From India, Mumbai
actually PF is calculated on Basic + DA. But PF calculation is limitted to Rs.6500 in case of employees who are drawing more basic than this.. How ever employees' contribution is 12% and employer contribution is 13.61%. This 13.61% is divided as 8.33% (Pension Fund), 3.67% (Employer Contribution to PF), 1.61%(which further divided as 1.1% Admin charges on PF, 0.5% (Employee Deposit Linked Insurance, 0.01% (Service Charge on EDLI)
From India, Bangalore
From India, Bangalore
Similarly, ESI is calculated on Gross Salary. And the rate is 1.75% of Gross salary for employees and 4.75% of Gross Salary for Employers. However, those who are having a salary of more than 15000, need not pay ESI, instead they have an allowance called Medical Allownce which is not more than 1250 per month.
From India, Bangalore
From India, Bangalore
Dear Mr.Robert,
The PF & ESI Calculations are mentioned hereunder separately.
PF Calculation for Factories, Shops & Establishments:
1) Employee’s Contributions on Basic + DA - 12.00%
2) Employer’s Contributions on Basic + DA 12.00%
i) Administrative Charges - 1.10%
ii) EDLI - 0.50%
iii) EDLI Charges - 0.01%
--------------------
Employer’s Total Contributions: 13.61%
3) Total of Employee’s & Employer’s Contributions = 12+13.61 = 25.61%
If employee joins beyond Rs.6500/- of Basic+DA at the time of joining, he is exempted as an EXCLUDED EMPLOYEE if submit a Joint Declaration to the EPFO for exemption.
ESI Calculation for Factories, Shops & Establishments:
ESI is calculated on all components upto Rs.15000/- per month of the salary except the Washing Allowance & Conveyance Allowance. Beyond Rs.15000/-, the ESI is not applicable.
1) Employee’s Contributions - 1.75%
2) Employer’s Contributions on Basic + DA - 4.75%
-------
3) Total of Employee & Employer Contributions - 6.50%
--------
The ESI member is eligible for the Medical Benefit from the date of joining in the ESI covered company but for Sickness Benefits Contribution period is to be satisfied.
Regards,
PADALA VENKATA SUBBARAO
LABOUR WELFARE OFFICER
SRI SARVARAYA SUGARS LIMITED
(COCA-COLA BOTTLING UNIT)
KESAVARAM, EG DT(AP)
:
From India, Hyderabad
The PF & ESI Calculations are mentioned hereunder separately.
PF Calculation for Factories, Shops & Establishments:
1) Employee’s Contributions on Basic + DA - 12.00%
2) Employer’s Contributions on Basic + DA 12.00%
i) Administrative Charges - 1.10%
ii) EDLI - 0.50%
iii) EDLI Charges - 0.01%
--------------------
Employer’s Total Contributions: 13.61%
3) Total of Employee’s & Employer’s Contributions = 12+13.61 = 25.61%
If employee joins beyond Rs.6500/- of Basic+DA at the time of joining, he is exempted as an EXCLUDED EMPLOYEE if submit a Joint Declaration to the EPFO for exemption.
ESI Calculation for Factories, Shops & Establishments:
ESI is calculated on all components upto Rs.15000/- per month of the salary except the Washing Allowance & Conveyance Allowance. Beyond Rs.15000/-, the ESI is not applicable.
1) Employee’s Contributions - 1.75%
2) Employer’s Contributions on Basic + DA - 4.75%
-------
3) Total of Employee & Employer Contributions - 6.50%
--------
The ESI member is eligible for the Medical Benefit from the date of joining in the ESI covered company but for Sickness Benefits Contribution period is to be satisfied.
Regards,
PADALA VENKATA SUBBARAO
LABOUR WELFARE OFFICER
SRI SARVARAYA SUGARS LIMITED
(COCA-COLA BOTTLING UNIT)
KESAVARAM, EG DT(AP)
:
From India, Hyderabad
Dear AnandaKG
Provisions for exemption from the EDLIS are listed under Section 17 of the EPF&MP Act 1952 along with Section 28(1) of EDLIS. An exemption from EDLIS is granted where the employees receive an insurance benefit without making any separate contribution or paying premium. It is necessary that this insurance benefit be greater than the insurance benefit provided under the EDLIS. An establishment exempted from the operation of the EDLIS is required to submit a monthly return to the RPFC. The establishment is also liable to pay inspection charges at the rate of 0.005% of the basic wages and dearness allowance, subject to a minimum of Re.1 per month. It does not have to pay any administration charges.
Regards, Srikanth
From India, Hyderabad
Provisions for exemption from the EDLIS are listed under Section 17 of the EPF&MP Act 1952 along with Section 28(1) of EDLIS. An exemption from EDLIS is granted where the employees receive an insurance benefit without making any separate contribution or paying premium. It is necessary that this insurance benefit be greater than the insurance benefit provided under the EDLIS. An establishment exempted from the operation of the EDLIS is required to submit a monthly return to the RPFC. The establishment is also liable to pay inspection charges at the rate of 0.005% of the basic wages and dearness allowance, subject to a minimum of Re.1 per month. It does not have to pay any administration charges.
Regards, Srikanth
From India, Hyderabad
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