In Coimbatore, India, understanding the calculations and eligibility criteria for ESI, PF, Pension, and Gratuity is crucial for both employers and employees. Here's a practical breakdown of each component:
[ B ] ESI (Employee State Insurance):
1. ESI is a social security and health insurance scheme for employees.
2. Eligibility: Employees with a salary of up to INR 21,000 per month are covered under ESI.
3. Contribution: The employer contributes 4.75% of the employee's salary, while the employee contributes 1.75%.
[ B ] PF (Provident Fund):
1. PF is a retirement savings scheme for employees.
2. Eligibility: Employees with a basic salary of up to INR 15,000 must contribute to PF.
3. Contribution: Both the employer and employee contribute 12% of the employee's basic salary to the PF account.
[ B ] Pension:
1. Pension schemes are aimed at providing financial security to employees post-retirement.
2. Eligibility: Employees covered under the EPF scheme are eligible for pension benefits.
3. Calculation: The pension amount is calculated based on the employee's years of service and average salary.
[ B ] Gratuity:
1. Gratuity is a statutory benefit provided to employees upon retirement or resignation.
2. Eligibility: Employees who have completed 5 years of continuous service are eligible for gratuity.
3. Calculation: Gratuity = (Last drawn salary x 15 days x number of years of service) / 26.
Understanding these calculations and eligibility criteria is essential for ensuring compliance with labor laws and providing employees with their entitled benefits in Coimbatore, India.