Seeking Guidance on ESI and PF: How Can I Learn and Understand These Better?

Dear Seniors,

Greetings!

Can anybody help me in learning ESI and PF? I need guidance. Kindly help!

Warm Regards,

Kritika Singhal

Hi Kritika,

You may refer to the links below for information on these benefits:

For ESIC: Coverage | Employee's State Insurance Corporation, Ministry of Labour & Employment, Government of India

For PF: EPFO || For Employees

If you have any further queries, you may reply.

Regards,
Asna Siddiqui
Associate HR

Understanding ESIC and PF

For your basic knowledge:

ESIC

- Eligibility: Employee's gross wage is less than INR 21,000.
- Employee Contribution: 1.75% of gross wage.
- Employer Contribution: 4.75% of gross wage.
- Administered by: Employee State Insurance Corporation.
- Benefits: To provide medical/employment benefits to employees and their dependents.

PF

- Eligibility: All employees of an organization with more than 20 employees.
- Employee Contribution: 12% of gross wage.
- Employer Contribution: 12% of gross wage (divided into PF (3.67%) & Pension (8.33%)).
- Administered by: Regional PF Authority.
- Benefits: To provide retirement benefits to employees and their nominees in case of bereavement.

Hope this info helps!

Regards, Asna Siddiqui
Associate HR

Dear Ansa Siddiqui,

PF Employee Contribution: 12% of Basic Wage, not gross. Employer Contribution: 13.36% of Basic Wage.

Regards,
Arvind Kumar
HR Manager

If an employee is the sole earning member in a family, can he/she include siblings as dependents for ESI? Also, for treatments, is there a cap on expenses?

Thanks,
Anoop

After 58 years of age, if a person is still in service, then the contribution to ESI and Employee PF remains the same. Only their Employer PF pension part (8.33% of 12%) will cease, and only the PF contribution (12%) will continue.

If a person is not in service, they are eligible to receive the PF amount on a monthly pension basis or can withdraw it at once, but they will be deprived of ESI benefits after completing the ESI tenure. If they want to opt for ESI benefits post-retirement, they must pay INR 120 per year to receive the benefit.

Regards, Asna Siddiqui