Understanding the Latest ESI and PF Amendments: What's the New Ceiling Point?

Hi friends,

Can you tell me about the new amendment in ESI and PF? What is the ceiling point of ESI?

I believe that until there is a change in the limit of PF and ESI, the following applies:

ESI Ceiling
ESI Ceiling: ₹10,000 (Gross salary)
ESI Contribution: 1.75% from the employee side and 4.75% from the employer side of the total salary.

EPF Contribution
EPF Contribution: 12% from both sides or 12% from the employer side and a minimum of ₹780 from the employee side (12% of ₹6,500 basic salary).

Regards

As of now, there are no such notifications in AP. Does it vary from state to state?

Ram
L&T

Mr. Alone, what do you mean by minimum here? Is it right?

EPF contribution: 12% from both sides or 12% from the employer's side and a minimum of Rs. 780 from the employee's side (12% of Rs. 6500 basic salary).

Upcoming Amendments in ESI and PF

The ESI limit is going to be hiked to ₹15,000, and the PF to ₹12,000. For PF, the bill is about to be introduced in Parliament. Another important amendment that is going to happen in ESI is related to the workplace.

Coming back from the workplace to home is also going to be counted as workplace time. This means that if anything happens during the to-and-fro journey to the workplace and home, it will be treated as a workplace accident.

Dear Mr. Vikas,

As per the law, Rs. 780 or 12% of the basic salary, whichever is minimum, should be deducted from the salary as the EPF contribution from the employee side only.

Deepika (Ms. Alone)

Dear Praveen,

ESI limit has been raised to 15000 from 01 May 2010. Gazette notification has already been issued.

PF limit is currently at 6500 and will be raised to 12000.

Hi,

Ms. Alone, could you please confirm if 780/- is the maximum amount? If the amount exceeds this limit, will the PF not be deductible?

Please tell me about the ESI & PF contribution and new amendments in the limit. Also, how many employees are compulsory for mandatory registration in ESI & PF?

Hi, I have just received news that in the latest PF amendment (May 2012), PF deduction is from the gross salary (including HRA, medical allowance, travel allowance, special allowance) instead of basic salary + DA. Our company is practicing the same (on gross salary). Could you provide insight into the actual scenario of the PF issue?

Regards,
Divyesh Patel