Refresh Your Knowledge on EPF & ESIC of India: Any Suggestions or Insights?

I have attached a brief PPT on EPF & ESIC of India. I think it would refresh our knowledge about these entities. If you have any suggestions, kindly let me know.

Thank you.

Regards

Could you please tell me if an employee who has resigned from their job after completing 2 years wants to withdraw their PF contribution? According to my knowledge, they will receive their Employee contribution of 12%, Employer contribution of 3.67%, and interest as per government rules.

Please confirm if my understanding is correct. I am confused about receiving the employer contribution. Will we receive both the employer contributions (8.33% + 3.67%) or only one account contribution between them?

Thanks & Regards,
Monali

Dear Monali,

Employer shares are deposited in two accounts: Account No. 1, known as the Provident Fund, and Account No. 10, as the Pension Fund. When you apply for a withdrawal before completing 10 years of service, you need to fill out two forms (Form 10C & 19) for a total withdrawal.

Regards,

PF & ESIC Applicability for Group Companies

My company is a group of companies. Under this, we have 7 companies with different operations. We have PF & ESIC registration for 1 company due to a staff strength of 100 employees, but in the other companies, there are only 8-9 employees.

My query is whether PF & ESIC are applicable for my other 6 companies, considering they are part of the same group of companies (with the same directors).

Kindly confirm with relevant documents/sections, etc.

Regards,
Praveen

Hi Monali, here, every employee is eligible to receive the whole amount of 12% + (8.33% + 3.67%) + interest. Also, they can withdraw the same amount after completing at least 6 months' tenure in the company. The EPS part is applicable only when they complete 10 years of service. Therefore, the 8.33% part is never retained by the government.

Regards, Mahipal

As per my knowledge, any non-seasonal factories using power and employing ten (10) or more persons, or non-seasonal and non-power using factories and establishments employing twenty (20) or more persons, are eligible to register for ESIC. Additionally, every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify, in this behalf are eligible for EPF registration. If you go through the document file attached here by me, it is clearly mentioned there (Page 7, 11).

Regards