May I know the PF & ESI rate for current financial year,and what about the limits to deduction the PF as well as ESI
Good Morning :-P!!!
PF Contributions : 1. Employee 12%
2. Employer 12%
PF is optional on and over Rs. 6500 ( Basic Salary)
ESI Contributions: 1. Employee 1.75%
2. Employer 4.75 %
ESI limit is Rs. 10000 gross Salary
PF of Basic+DA
ESI on Gross earnings(Washing allowance is exempted)
Difference between gross salary and gross earnings is
eg: your gross salary is 9500/month and you worked over time/got holiday wage or any other component like incentive etc where the earning of that month is 11000 you are entitled for ESI deduction.
for your suggestions and corrctions if any...,
Coverage - Act is applicable to non-seasonal factories using power and employing 10 or more persons and non-power using factories 20 or more persons.
Earning wages limit- Gross Salary Rs. 10,000/- w. e. f. 01.04.2006.
Contribution : By Employer @ 4.75%
By Employee @ 1.75%
Registration and number allotment- Duly filled Form-01
For Employees Form 01 & Declaration Form no. 03 within 10 days of joining, kept one copy of Form-3 for record.
Identity Cards : Form 4 the ESI Office will issue the same.
Register for ESI Record : Every employer shall maintain a register in Form-6 which is prescribed in rule-32.
Contribution periods 1st : 1st April to 30th September
2nd : 1st October to 31st March
Challans Deposit : Deposit in bank by 21st of every month.
Returns of contribution : On Form no. 5 in quadruplicate with Six Challans within or before 11 May & 12 Nov of every year mandatory certified by the Chartered Accountant if the member are 40 nos. or more w. e f. 01.04.2008.
Special Provision :
(i) Within 42 days of the termination of the contribution period to which it related.
(ii) Within 21 days of the date of permanent closure of the factory.
(iii) Within 7 days of the date f receipt of requisition in that behalf from the appropriate office.
Notice of Accident : As soon as practicable after the accident.
Maintenance of Accident Book : Form-15 any injury to an insured person.
Report to Accident :
1. Immediately if the injury is serious. i.e. is likely to be cause to death or permanent disablement or loss of a member.
2. In any other case within 24 hours after the receipt of the notice or when the accident came to his notice or to his foremen or other official under whose supervision the insured person was employed at the time of accident.
3. If the injury result in the death at the place of employment, the report to IMO and Local Office should be sent through a special messenger.
Every Employer shall send a report in Form-16 to the nearest Local Office and to the nearest Insurance Medical Officer in triplicate i.e.
(1) One deposit to Local Office
(2) Second deposit to IMO
(3) Kept for their records.
Benefit Period : If the person joined insurable employment for the first time say 5th January, but his contribution period will be 5th Jan to 31st March and his corresponding first benefit will be from 5th October to 31st December.
Sr. No. To be deemed as a wages Not to be deemed as a wages
1 Basic Allowance Contribution paid by employer on any pension / PF or ESI
2 Dearness Allowance Daily Allowance paid for period spent on tour
3 House Rent Allowance Encashment of leaves
4 City Compensatory Allowance Washing Allowance
5 OT Wages Amount towards reimbursement for duty related journey
6 Production Incentive Gratuity payable on discharge
7 Payment for day of rest Benefit paid under ESI
8 Night Shift Allowance Payment of Inam which does not form part of the terms of employment
9 Meal / Food Allowance
10 Suspension Allowance
11 Conveyance Allowance
Damages or contribution or any other amount due but not paid in time-
Sr. No. Period of delay Maximum rate of damages in % per annum of the amount due
1 Less than 2 months 5 %
2 Grater than 2 but less than 4 months 10 %
3 Grater than 4 but less than 6 months 15 %
4 Grater than 6 months 25 %
Penalties : Different punishment have been prescribed for different types of offences in terms of section 85 :
(i) Six month imprisonment and fine Rs. 5000/-
(ii) One year imprisonment and fine
And under section 85-A
(i) Five year imprisonment and not less than 2 years
And under section 85-C(2) of the ESI Act which are self explanatory
Besides these provisions, action also can be taken under section 406 of the IPC in case where an employer deduct contribution from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.
1) employers PF contribution 3.67% of basic
2) Employers contribution towards pension is 8.33% of basic
3) Employees PF contribution is 12% of basic
4) EDLI charges deduct from employer which will be 0.50% of basic
5) Admin charges deduct from Employer which will be 1.10% of basic
6) EDLI admin charges deduct from employer which will be 0.01% of basic
Asst HR Othello
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