Curious About the Latest Provident Fund and ESI Rates in India? Let's Discuss!

What is the new provident fund rate in India? Can anyone clarify my doubt on this? And ESI?

Thanks & Regards,
Robert

Hi, PF is 12% of the wages; both the employer and employee have to contribute. The deduction rate is the same. For ESIC, the employer's contribution is 4.75%, and the employee's contribution is 1.75%.

Regards

Provident Fund and ESIC Exemption Criteria

If any new employee has more than Rs. 6500 as basic & DA, then they may be exempted from PF contribution. For ESIC, if anyone has gross wages exceeding Rs. 15000, they shall be exempted from ESIC at any time during their service.

Regards,
Anand

Actually, PF is calculated on Basic + DA. However, PF calculation is limited to Rs. 6500 in the case of employees who are drawing more basic than this. Nonetheless, employees' contribution is 12%, and the employer contribution is 13.61%. This 13.61% is divided as follows: 8.33% (Pension Fund), 3.67% (Employer Contribution to PF), 1.61% (further divided as 1.1% Admin charges on PF, 0.5% Employee Deposit Linked Insurance, 0.01% Service Charge on EDLI).

Similarly, ESI is calculated on Gross Salary, and the rate is 1.75% of Gross Salary for employees and 4.75% of Gross Salary for employers. However, those who have a salary of more than 15,000 need not pay ESI; instead, they receive an allowance called Medical Allowance, which is not more than 1,250 per month.

Dear Mr. Robert,

PF Calculation for Factories, Shops & Establishments:

1) Employee's Contributions on Basic + DA - 12.00%
2) Employer's Contributions on Basic + DA - 12.00%
i) Administrative Charges - 1.10%
ii) EDLI - 0.50%
iii) EDLI Charges - 0.01%

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Employer's Total Contributions: 13.61%

3) Total of Employee's & Employer's Contributions = 12 + 13.61 = 25.61%

If an employee joins with a Basic + DA beyond Rs. 6500/- at the time of joining, he is exempted as an EXCLUDED EMPLOYEE if a Joint Declaration is submitted to the EPFO for exemption.

ESI Calculation for Factories, Shops & Establishments:

ESI is calculated on all components up to Rs. 15000/- per month of the salary except the Washing Allowance & Conveyance Allowance. Beyond Rs. 15000/-, the ESI is not applicable.

1) Employee's Contributions - 1.75%
2) Employer's Contributions on Basic + DA - 4.75%

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3) Total of Employee & Employer Contributions - 6.50%

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The ESI member is eligible for the Medical Benefit from the date of joining in the ESI covered company, but for Sickness Benefits, the contribution period must be satisfied.

Regards,

PADALA VENKATA SUBBARAO
LABOUR WELFARE OFFICER
SRI SARVARAYA SUGARS LIMITED
(COCA-COLA BOTTLING UNIT)
KESAVARAM, EG DT(AP)