Ceiling Limit @ Legal Terminology in EPF & ESIC
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Ceiling Limit @ Legal Terminology in EPF & ESIC

duke Started The Discussion:

I am interested in this topic and want certain clarifications.

1. salary for PF deduction has been raised to amount limit?
2.salary for ESI deduction has been raised to amount limit?
3. what A/c No. 1, A/c No. 2, A/c No. 21, A/c No. 22, stands for;
Can some body help me with this break-up why this A/c No. have been designated and their purpose behind it by the PF deptt.?

PF ACCOUNTS EMPLOYER Cont. EMPLOYEE Cont. TOTAL
A/C I 3.67 % of Basic 12 % of Basic 3.67 % + 12 %
A/C II 1.1 % of Basic - 1.1 % of Basic
A/C X 8.33 % of Basic - 8.33 % of Basic
A/C XXI 0.5 % of Basic - 0.5 % of Basic
A/C XXII 0.01 % of Basic - 0.01 % of Basic
T O T A L 13.61 % of Basic 12 % of Basic 25.61 % of Basic

Regards
Duke
dipakmalik gmail.com

Madhu.T.K - Member Since: Sep 2007
As per EPF....Act, 1952, an employee of an organisation employing a minimum of 20 employees, whose gross salary (Basic + DA) doesnot exceed Rs 6500 per month is required to become a member. This is mandatory. But if the company desires, those whose starting salary exceed Rs 6500 can also become PF members. Once covered, an employee will continue to be covered whatever be the salary. Similarly, a covered establishment will not go out of coverage of EPF if the number of employees comes down below 20.

A/C Nos mentioned are for remittance purpose. An employer is suppose to collect 12% of the gross salary as employees contribution and a similar amount is to be contributed by the employer. The employer's contribution of 12% is to be divided into 8.33% and 3.67% and the same are deposited in A/C No 10 and A/C No 01 respectively. The employees share of 12% is also deposited in account No. 01. The account No. 01 represents Provident Fund and Account No. 10 represents Pension Fund.
Besides these, employer has to deposit 1.1% of the total salary bill (of the eligible employees) to Account No. 02 as Administrative charges, 0.5% of the salary to A/C No. 21 towards Employees Deposit Linked Insurance and 0.01% towards administrative charges of EDLI to A/C No. 22. Deposit to A/C Nos 02, 21 and 22 are to be made by employer alone and the sum cannot be recovered from the salary of employees.

ESI is applicable to those establishments employing 10 or more workers. ESI is covered to those whose salary per month doesnot exceed Rs 10000. A covered employee will cease to be insured when his salary exceed Rs 10000. However he will be within coverage upto the end of the contribution period. From the next contribution period onwards he will be out of cover. Under ESI, there are two contribution period, viz, Apri- Sept and Oct- Mar.
The rate of employees share is 1.75% and employer's share is 4.75%

Regards,

Madhu.T.K

marwah.rajesh - Member Since: Feb 2010
Dear

If you can give me Notification from EPFO for deduction ofAdministrativecharges (EDLI) of Employer and calculation of the same
In my opinion it should be calculate on Basic salary+DA Employer share but not more 6500/- Am I correct or wrong
For Example
Basic Salary Employer PF 8.33% Employer PF3.67%
Employee 1 10000 541 659
Employee 2 5000 417 183

Please tell me about calculation of EDLI 1.1%, 0.5% and 0.01% it will be on 8.33% amount or total of both

Rajesh Marwah

sanjib_kjr - Member Since: Jun 2011
Presently the esic ceiling increased to rs.15,000/-. Those who have earned monthly rs.15,000/- only entitle for esic.

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