Dear seniors,
Require your help for understanding certain terminologies in depth. Plss require ur help..
1. PF
2. ESI
3. IT
4. Gratuity
5. PT
6. Payroll
7. Medical benefits
pls help me
Regards
Vineetha
From India, Bangalore
Require your help for understanding certain terminologies in depth. Plss require ur help..
1. PF
2. ESI
3. IT
4. Gratuity
5. PT
6. Payroll
7. Medical benefits
pls help me
Regards
Vineetha
From India, Bangalore
Dear Vineetha.
Those terminology which u have mention are actually comes from various Acts & Rules made for Labour/Employees in India. It’s not clear from your query what u wanna know abut these terminology...
But let me try to help u understand as far as possible...
1. PF (Provident Fund) : This word has been mentioned in the Act " The Employees' Provident Fund & Misc. Provisions Act, 1952". The Employees' Provident Fund & Misc. Provisions Act, 1952 provides for the institution of Compulsory Provident Fund, Pension Fund and Deposit-Linked Insurance Fund, for the benifit of employees in factories and other establishment. The Act is present applicable to 173 industries and classes of establishment employing 20 or more persons. This Act is Social Security Legislation for the employees working in factories/establishment for the rainy days after the retirement from service. Provident Fund contribution is 12% of Basic Wages of an employee from Employees share from the total contribution of 24% (12% Employees' Contribution + 12 % Employers' Contribution) and another 1.61% is deducted as Administrative Charges. This 12% Employees Contribution which has been deposited under Provident Fund will be available to the employees after retirement/superannuation from the service with interest (rate of interest decide by Govt. of India time to time) as lump sum.
2. ESI (Employees' State Insurance): This word has been mentioned in the Act " The Employees' State Insurance Act, 1948" The Employees' State Insurance Act, 1948 is an Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. it provides for grant of cash benefits to the employees in the recognised contingencies of sickness, maternity and employment injury. It also provides for medical benefits, in kind, to the employees and their families. The Act is present applicable to non-seasonal factories and certain other establishments. its a beneficial peace of legislation intended for above mentioned causes. All the contributions (Employers' and Employees' , 4.75% and 1.75% respectively) and all other moneys received (grants, donations and gifts) on behalf of the ESI Corporation are paid into a Fund called Employees' State Insurance Fund which is held and administered by the Corporation for the purpose of the Act.
3. IT (Income Tax): It is a tax imposed by the Government of India on any body who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India. Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.
4. Gratuity: this word is mentioned in the Act " The Payment of Gratuity Act, 1972. This Act provides for a scheme for payment of gratuity to employees engaged in factories, mines, oilfeild, plantation, ports, railway companies, shop or other establishment and for matters connected therewith or incidental thereto. the act is peace of welfare legislation and its provisions are in the nature of social-security measures like ESI, Provident Fund and Pension. This Act is applicable to every factories, mines, oilfeild, plantation, ports, railway companies, shop or establishment in which 10 or more persons are employed, or were employed, on any day of the preceding 12 months. Formula for calculation of Gratuity
formula for calculation of gratuity= last drawn salary (basic+da)*year of service / 15, payable only after the completion of 5 yrs. of service.
4. PT (Professional Tax) ,5. Payroll and others will discussed latter.
Regards.
Jawed Alam.
From India, Dhanbad
76Those terminology which u have mention are actually comes from various Acts & Rules made for Labour/Employees in India. It’s not clear from your query what u wanna know abut these terminology...
But let me try to help u understand as far as possible...
1. PF (Provident Fund) : This word has been mentioned in the Act " The Employees' Provident Fund & Misc. Provisions Act, 1952". The Employees' Provident Fund & Misc. Provisions Act, 1952 provides for the institution of Compulsory Provident Fund, Pension Fund and Deposit-Linked Insurance Fund, for the benifit of employees in factories and other establishment. The Act is present applicable to 173 industries and classes of establishment employing 20 or more persons. This Act is Social Security Legislation for the employees working in factories/establishment for the rainy days after the retirement from service. Provident Fund contribution is 12% of Basic Wages of an employee from Employees share from the total contribution of 24% (12% Employees' Contribution + 12 % Employers' Contribution) and another 1.61% is deducted as Administrative Charges. This 12% Employees Contribution which has been deposited under Provident Fund will be available to the employees after retirement/superannuation from the service with interest (rate of interest decide by Govt. of India time to time) as lump sum.
2. ESI (Employees' State Insurance): This word has been mentioned in the Act " The Employees' State Insurance Act, 1948" The Employees' State Insurance Act, 1948 is an Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. it provides for grant of cash benefits to the employees in the recognised contingencies of sickness, maternity and employment injury. It also provides for medical benefits, in kind, to the employees and their families. The Act is present applicable to non-seasonal factories and certain other establishments. its a beneficial peace of legislation intended for above mentioned causes. All the contributions (Employers' and Employees' , 4.75% and 1.75% respectively) and all other moneys received (grants, donations and gifts) on behalf of the ESI Corporation are paid into a Fund called Employees' State Insurance Fund which is held and administered by the Corporation for the purpose of the Act.
3. IT (Income Tax): It is a tax imposed by the Government of India on any body who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India. Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.
4. Gratuity: this word is mentioned in the Act " The Payment of Gratuity Act, 1972. This Act provides for a scheme for payment of gratuity to employees engaged in factories, mines, oilfeild, plantation, ports, railway companies, shop or other establishment and for matters connected therewith or incidental thereto. the act is peace of welfare legislation and its provisions are in the nature of social-security measures like ESI, Provident Fund and Pension. This Act is applicable to every factories, mines, oilfeild, plantation, ports, railway companies, shop or establishment in which 10 or more persons are employed, or were employed, on any day of the preceding 12 months. Formula for calculation of Gratuity
formula for calculation of gratuity= last drawn salary (basic+da)*year of service / 15, payable only after the completion of 5 yrs. of service.
4. PT (Professional Tax) ,5. Payroll and others will discussed latter.
Regards.
Jawed Alam.
From India, Dhanbad
Dear Vineetha.
If u have any other things to know in details related to these words u may check books on these Act or may feel free to write me with my e-mail id.
Regards.
Jawed Alam
From India, Dhanbad
If u have any other things to know in details related to these words u may check books on these Act or may feel free to write me with my e-mail id.
Regards.
Jawed Alam
From India, Dhanbad
Dear All.
Thanks for your comments.
Now regarding other words:
4. PT (Professional Tax): Professional Tax is tax imposed on the salaried people working govt.or nongovt offices. professionalTax deducted from the salary of working class is payable to the concerned State Govt where the employees office / company situated. But not all the state govt imposed professional Tax. the rate is depends on the states. Like Income tax is a revenue earned by Govt. of India, Professional Tax is a revenue earned by State Govt. In some states there is no p/tax. Profeesional tax is a source of revenue through those who comes under the jurisdiction of professional tax such as CA,CS,lawyer,technical, software services who earn their income through rendering professional service/s.
There are various slabs of p/tax according to the pay range in different State of India.(since I am not a finance professional I cant contribute more).
5. Payroll: In a company, payroll is financial presentation of salaries for all employees, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. From the HR point of view Payroll is very much necessary to take future decisions related to Human Resouce Planning, Recruitment and Wages & Salry administration/preparation. Its also help us in taking decision whether to and how much the increament an employee shud enhanced. There are basically two types of management is used for Payroll. 1. Manually (traditional) 2. Computerised.
7. Medical benefits: Medical benifits depends upon the Company's HR Policy. As per Factories Act there is provision for medical facilities but medical benifits are beyond these medical facilities like cash less medicine provided to employees, free medical treatment at outdoor, medical leaves, Medical Bill reimbursement on submission of actual documents, etc.
regards.
Jawed Alam
From India, Dhanbad
Thanks for your comments.
Now regarding other words:
4. PT (Professional Tax): Professional Tax is tax imposed on the salaried people working govt.or nongovt offices. professionalTax deducted from the salary of working class is payable to the concerned State Govt where the employees office / company situated. But not all the state govt imposed professional Tax. the rate is depends on the states. Like Income tax is a revenue earned by Govt. of India, Professional Tax is a revenue earned by State Govt. In some states there is no p/tax. Profeesional tax is a source of revenue through those who comes under the jurisdiction of professional tax such as CA,CS,lawyer,technical, software services who earn their income through rendering professional service/s.
There are various slabs of p/tax according to the pay range in different State of India.(since I am not a finance professional I cant contribute more).
5. Payroll: In a company, payroll is financial presentation of salaries for all employees, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. From the HR point of view Payroll is very much necessary to take future decisions related to Human Resouce Planning, Recruitment and Wages & Salry administration/preparation. Its also help us in taking decision whether to and how much the increament an employee shud enhanced. There are basically two types of management is used for Payroll. 1. Manually (traditional) 2. Computerised.
7. Medical benefits: Medical benifits depends upon the Company's HR Policy. As per Factories Act there is provision for medical facilities but medical benifits are beyond these medical facilities like cash less medicine provided to employees, free medical treatment at outdoor, medical leaves, Medical Bill reimbursement on submission of actual documents, etc.
regards.
Jawed Alam
From India, Dhanbad
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