ESI, PF, Pension, Gratuity Calculation and Eligibility
From India, Coimbatore
Acknowledge(0)
Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
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.
From India, Gurugram
Acknowledge(0)Amend(0)
46[ 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.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Benefits.doc
Employee Benefits.zip