Re: Provident Fund

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 Employer and Employee have to contribute, the deduction rate is same and for ESIC the Employers contribution is 4.75% and Employees Contribution is 1.75%

If any new employee is having more thanRs. 6500 basic & da ,Then he may be exempted from PF contribution.
ESIC if any one is having more than Rs.15000 gross wages then he shall be exempted from ESIC at any TIME OF SERVICE.
Anand

Yes you are right .He is entilte for ESIC till respctive block- period ie up to Sept & April of a year.Maximunm 6 months. ( for which period he has crossed Rs.15000 gross wages).

actually PF is calculated on Basic + DA. But PF calculation is limitted to Rs.6500 in case of employees who are drawing more basic than this.. How ever employees' contribution is 12% and employer contribution is 13.61%. This 13.61% is divided as 8.33% (Pension Fund), 3.67% (Employer Contribution to PF), 1.61%(which 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 are having a salary of more than 15000, need not pay ESI, instead they have an allowance called Medical Allownce which is not more than 1250 per month.

Dear Mr.Robert,

The PF & ESI Calculations are mentioned hereunder separately.

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

ESI Calculation for Factories, Shops & Establishments:

ESI is calculated on all components upto 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 Contribution period is to be satisfied.

Regards,

PADALA VENKATA SUBBARAO

LABOUR WELFARE OFFICER

SRI SARVARAYA SUGARS LIMITED

(COCA-COLA BOTTLING UNIT)

KESAVARAM, EG DT(AP)

:

In case if any employer is having separate better insurance policy then he has been exmpted from EDLI Charges ie 0.50 & 0.01%.

Dear V.Srikanth
My question is in what circumstances EDLI is exempted .?(Employee deposit linked Insurance-EDLI)

Dear AnandaKG
Provisions for exemption from the EDLIS are listed under Section 17 of the EPF&MP Act 1952 along with Section 28(1) of EDLIS. An exemption from EDLIS is granted where the employees receive an insurance benefit without making any separate contribution or paying premium. It is necessary that this insurance benefit be greater than the insurance benefit provided under the EDLIS. An establishment exempted from the operation of the EDLIS is required to submit a monthly return to the RPFC. The establishment is also liable to pay inspection charges at the rate of 0.005% of the basic wages and dearness allowance, subject to a minimum of Re.1 per month. It does not have to pay any administration charges.
Regards, Srikanth