We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab.
dont panic and confuse.
Under the ESI Act, 1948 the Employees drawing wages uptoRs. 15000/- per month are eligible to avail ESI facilities subject to the applicable contributory conditions. The ceiling of wages for persons with disability is Rs.25,000/- per month. There is no minimum wage limit for availing ESI facilities.
This information was given by Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Lok Sabha today in reply to a written question.
quote:Press Information Bureau English Releases
Further to Mr. Vikas Sharma's query as above I have another question as under :
Suppose I am drawing gross salary of Rs.23500/- p.m. and due to proposed rise in ESI ceiling to Rs.25000/-, I will be covered in ESI and I shall have to pay 1.75% my contribution and my employers' liability to my ESI contribution will be 4.75% of my gross salary.
Now suppose I am having CTC pay method in a company, do I have to pay all 6.5% of ESI contribution from my pocket only? Is not employer responsible to pay his part of contribution @ 4.75%? People say (also refer Press Note of Livermint News) that in case of CTC system, take home salary of employee will reduce by 6.5% if he is first time covered under ESI. What is all these ? How it all works?
Can any of you friends explain and enlighten me of the facts ?
Thanks and regards,
Though I have written all the above, I feel many companies who work out the salary on a total sum as CTC and bring down by bifurcating the same by different names depending upon its significance in present contributions (like PF, Bonus) or future payments like gratuity, will be working again on it based on the new amendment so that they will not suffer economically.
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