Ceiling Limit @ Legal Terminology In EPF & ESIC

I am interested in this topic and want certain clarifications.

1. Has the salary for PF deduction been raised to the amount limit?
2. Has the salary for ESI deduction been raised to the amount limit?
3. What do A/c No. 1, A/c No. 2, A/c No. 21, A/c No. 22 stand for? Can somebody help me with this breakdown? Why have these A/c numbers been designated, and what is their purpose behind it by the PF department?

PF ACCOUNTS | EMPLOYER Cont. | EMPLOYEE Cont. | TOTAL
- A/C I | 3.67% of Basic | 12% of Basic | 3.67% + 12%
- A/C II | 1.1% of Basic | - | 1.1% of Basic
- A/C X | 8.33% of Basic | - | 8.33% of Basic
- A/C XXI | 0.5% of Basic | - | 0.5% of Basic
- A/C XXII | 0.01% of Basic | - | 0.01% of Basic
- TOTAL | 13.61% of Basic | 12% of Basic | 25.61% of Basic

Regards, Duke
dipakmalik@gmail.com

As per the EPF Act of 1952, an employee of an organization employing a minimum of 20 employees, whose gross salary (Basic + DA) does not exceed Rs 6500 per month, is required to become a member. This is mandatory. However, if the company wishes, those whose starting salary exceeds Rs 6500 can also become PF members. Once covered, an employee will continue to be covered regardless of their salary. Similarly, a covered establishment will not lose EPF coverage if the number of employees falls below 20.

The account numbers mentioned are for remittance purposes. An employer is supposed to collect 12% of the gross salary as the employee's contribution, and a similar amount is to be contributed by the employer. The employer's 12% contribution is to be divided into 8.33% and 3.67%, and these amounts are to be deposited in Account No. 10 and Account No. 01 respectively. The employee's share of 12% is also to be deposited in Account No. 01. Account No. 01 represents the Provident Fund, and Account No. 10 represents the Pension Fund.

In addition, the employer has to deposit 1.1% of the total salary bill (of the eligible employees) to Account No. 02 as Administrative charges, 0.5% of the salary to Account No. 21 towards Employees' Deposit Linked Insurance, and 0.01% towards administrative charges of EDLI to Account No. 22. Deposits to Account Nos. 02, 21, and 22 are to be made by the employer alone, and the sum cannot be deducted from the employees' salaries.

ESI is applicable to establishments employing 10 or more workers. ESI coverage applies to those whose monthly salary does not exceed Rs 10000. An employee will cease to be insured when their salary exceeds Rs 10000. However, they will remain covered up to the end of the contribution period. From the next contribution period onwards, they will no longer be covered. Under ESI, there are two contribution periods, namely, April-September and October-March.

The rate of the employee's share is 1.75%, and the employer's share is 4.75%.

Regards,

Madhu.T.K

Dear,

If you can give me a notification from EPFO for the deduction of Administrative charges (EDLI) of Employer and calculation of the same.

In my opinion, it should be calculated on Basic salary + DA Employer share but not more than 6500/-. Am I correct or wrong?

For example:

Basic Salary Employer PF 8.33% Employer PF 3.67%
Employee 1 10000 541 659
Employee 2 5000 417 183

Please tell me about the calculation of EDLI 1.1%, 0.5%, and 0.01%. Will it be on the 8.33% amount or the total of both?

Rajesh Marwah

Presently, the ESIC ceiling has been increased to Rs. 15,000. Those who earn a monthly salary of Rs. 15,000 are entitled to ESIC benefits.