Navigating Statutory Deductions: How Do Sick and Maternity Leave Affect ESIC and PF?

Statutory Deductions During Leave

1) Are statutory deductions such as PF and ESI applicable during sick or maternity leave?

Accident Occurrence and Holidays

2) What should be done if an accident occurs on a Friday night, and Saturday is a factory/establishment W/O, followed by a government holiday on Sunday?

ESIC Calculation During Leave

3) How is ESIC calculated if an employee is on sick leave, given that the employee is entitled to half pay during sick leave according to the leave policy? Additionally, how is it calculated for a female employee on maternity leave when she is entitled to full wages during maternity leave?

Maternity and Sick Leave Benefits Under the Law

The question is very well explained in law:

During maternity, a woman is entitled to maternity benefits under the Maternity Benefit Act. Her active services are held in abeyance during that time, so the period is referred to as a "vacuum." Therefore, no ESIC or PF is deducted. The Payment of Wages Act is supplemented by the Maternity Benefit Act for that period.

Sick Leave and ESIC Provisions

Regarding sick leave, under ESIC, there are specific provisions for sick leave and sickness benefits. However, setting ESIC aside, it is deducted from wages that an employee earns in lieu of work. If you are paying sickness benefits, that is not considered wages. Therefore, over and above the payment for work, there is no deduction as that is not wages but a benefit.

For more information, visit http://esisimplified.blogspot.in/

Regards

On sick leave (due to a common illness) - yes. But in the case of maternity leave or ESI sickness benefits, EPF & ESI - NO.

V. Murali

Dear Friends,

Do I have to file monthly contributions for the employee in ESIC and PF if he is on ESIC leave for 1 month?