Seeking Help with Statutory Compliance, PF, and ESIC Norms in India – Can You Clarify These Questions?

Hello All,

I have doubts about some questions. If anyone can help me out by replying to those questions and sending the answers to my email, I will be grateful for that information:

1. Do you know about statutory compliance?
2. How much is the contribution for PF by the employee and employer in both cases:
- a) if there is a pension scheme
- b) if there is no pension scheme
3. Which form is used for PF nomination and withdrawal?
4. What are the rules for gratuity and how is it calculated?
5. Why do we use form 10c?
6. Which form is used for ESIC nomination?
7. What are the ESIC norms in an organization?
8. PMS
9. Capability Development
10. Employee Engagement
11. OD 5) Career Planning and Succession Management
12. SPOs, etc.

The questions cover various crucial aspects of statutory compliance, PF contributions, and ESIC norms in India. Here are detailed responses to each query:

1. Statutory Compliance: Statutory compliance refers to the legal framework that organizations must adhere to concerning labor laws, taxation, and other regulations. It ensures that a company operates within the legal boundaries set by the government.

2. PF Contributions:
- With Pension Scheme: The employee's contribution to the Provident Fund (PF) is typically 12% of their basic salary, and the employer contributes an equal amount. If there is a pension scheme, the contribution towards the pension fund is 8.33% of the employee's basic salary.
- Without Pension Scheme: In the absence of a pension scheme, the entire 12% contribution goes towards the PF.

3. PF Nomination and Withdrawal: Form 2 is used for PF nomination, where employees can nominate their family members to receive the PF amount in case of their demise. Form 19 is used for PF withdrawal.

4. Gratuity Rules and Calculation: Gratuity is a statutory benefit provided to employees upon retirement or resignation after completing a certain period of continuous service. The gratuity amount is calculated using a specific formula based on the employee's last drawn salary and years of service.

5. Form 10c: Form 10c is used for claiming benefits under the Employee Pension Scheme (EPS) such as pension withdrawal or scheme certificate.

6. ESIC Nomination: ESIC nomination is done using Form 1, where employees can nominate their family members for ESIC benefits.

7. ESIC Norms: Employees' State Insurance Corporation (ESIC) norms in an organization include providing health insurance and medical benefits to employees covered under the ESIC scheme. Employers and employees contribute a percentage of the wages towards ESIC.

8. PMS: Performance Management System (PMS) is a strategic approach to ensure employees' performance aligns with the organization's goals through continuous feedback, goal setting, and performance evaluation.

9. Capability Development: Capability development focuses on enhancing employees' skills, knowledge, and competencies to improve performance and drive organizational growth.

10. Employee Engagement: Employee engagement involves creating a positive work environment where employees are motivated, committed, and actively contribute to the organization's success.

11. Career Planning and Succession Management: Career planning involves setting career goals and paths for employees, while succession management ensures a pipeline of talent for key roles within the organization.

12. SPOs: SPOs may refer to Specific, Measurable, Achievable, Relevant, and Time-bound objectives in the context of performance management or goal setting.

These topics are crucial for HR professionals to ensure legal compliance, employee welfare, and organizational success.