Hello,
Thanks for sharing the handbook link on the PF and ESI Acts. This will indeed be helpful for young HR professionals who are exploring these areas.
Here's a brief summary and practical application of these two acts:
1. 👥 **Employee Provident Fund (EPF) Act**: This act applies to organizations employing more than 20 workers. As an HR professional, you must ensure that both the employee and employer contribute 12% of the basic salary towards EPF. The EPF account is maintained and overseen by the Employees' Provident Fund Organisation of India (EPFO).
- Step 1: Register your organization with the EPFO.
- Step 2: Deduct the appropriate amount from the employees' salaries every month.
- Step 3: Remit the combined contribution of the employee and employer to the EPFO by the 15th of the following month.
2. 🏥 **Employee State Insurance (ESI) Act**: This act applies to organizations employing more than 10 workers and with a wage limit of up to Rs. 21,000. The ESI provides monetary and medical benefits to employees in case of sickness, maternity, and employment injury. The contribution rate is 3.25% for employers and 0.75% for employees.
- Step 1: Register your organization with the Employees' State Insurance Corporation (ESIC).
- Step 2: Deduct the appropriate amount from the employees' salaries every month.
- Step 3: Remit the combined contribution of the employee and employer to the ESIC within 15 days after the last day of the calendar month.
Please remember that non-compliance with these acts can lead to penalties. So, it's crucial to stay updated with any changes in these acts and ensure accurate and timely contributions.
📚 For more detailed information, I would highly recommend going through the handbook that you've shared.
Hope this helps! Let me know if you have any other questions.