Kindly let me know where to look for the amendments in ESI and PF and also knowledge about other statutory compliances like gratuity, bonus etc. Opened the EPI website but where will i find i have seen lot of people suggest this. If a firm has more than 20 employees then only PF and ESI will apply otherwise not am i correct?
From India, Lucknow
From India, Lucknow
EPF-(Employee provident Fund 1952)-To promote Retirement Savings
EPS-(Employee Pension Scheme 1995) –Provide Post Retirement Savings
EDLI- (Employee Deposit Linked Insurance Scheme 1976)- Relief to family members in case of sudden death
Interest Rate-8-9 %
Withdraw Reason- Medical emergencies, Marriage, Home Loan, House construction
10% rate is applicable for
• Any establishment in which less than 20 employees are employed.
• Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
• Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
• Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
## Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution. The Employer Share is difference of the EE Share (payable as per statute) and Pension Contribution.
!! Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable. Note: - If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-
@@ In case Establishment is exempted under PF Scheme, Inspection charges @0.18%, minimum Rs 5/- is payable in place of Admin charges. In case the Establishment is exempted under EDLI Scheme, Inspection charges
@ 0.005%, minimum Re 1/- is payable in place of Admin charges.
ESIC-
Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons.
The State Govt. has extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
Contribution
.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept.1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Benefits
The section 46 of the Act envisages following six social security benefits:-
(a) Medical Benefit
(b) Sickness Benefit (SB)
1. Extended sickness Benefit (ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit (MB)
(d) Disablement Benefit
1. Temporary disablement benefit (TDB)
2. Permanent disablement benefit (PDB)
(e) Dependent’s Benefit (DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers’ wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini L
EPS-(Employee Pension Scheme 1995) –Provide Post Retirement Savings
EDLI- (Employee Deposit Linked Insurance Scheme 1976)- Relief to family members in case of sudden death
Interest Rate-8-9 %
Withdraw Reason- Medical emergencies, Marriage, Home Loan, House construction
10% rate is applicable for
• Any establishment in which less than 20 employees are employed.
• Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
• Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
• Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
## Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution. The Employer Share is difference of the EE Share (payable as per statute) and Pension Contribution.
!! Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable. Note: - If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-
@@ In case Establishment is exempted under PF Scheme, Inspection charges @0.18%, minimum Rs 5/- is payable in place of Admin charges. In case the Establishment is exempted under EDLI Scheme, Inspection charges
@ 0.005%, minimum Re 1/- is payable in place of Admin charges.
ESIC-
Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons.
The State Govt. has extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
Contribution
.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept.1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Benefits
The section 46 of the Act envisages following six social security benefits:-
(a) Medical Benefit
(b) Sickness Benefit (SB)
1. Extended sickness Benefit (ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit (MB)
(d) Disablement Benefit
1. Temporary disablement benefit (TDB)
2. Permanent disablement benefit (PDB)
(e) Dependent’s Benefit (DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers’ wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini L