Dear Seniors, I am working in a small organization, and I have no experience and no senior above me. Recently, we started PF and ESIC schemes for our workers. My queries are:
1. Are monthly deductions made in employees' salaries for both employee and employer contributions, meaning a 24% deduction on the monthly basic of the employee?
2. Are any ESIC leaves available for employees?
3. After how many days can an employee receive the benefits of ESIC?
4. Can an employee get the pension fund if they leave the organization before completing 10 years?
5. Is the employer contributing to ESIC?
6. After how many days can an employee withdraw PF from their account?
Please do the needful.
Thanks & Regards,
Amol
From India, Mumbai
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1. Are monthly deductions made in employees' salaries for both employee and employer contributions, meaning a 24% deduction on the monthly basic of the employee?
2. Are any ESIC leaves available for employees?
3. After how many days can an employee receive the benefits of ESIC?
4. Can an employee get the pension fund if they leave the organization before completing 10 years?
5. Is the employer contributing to ESIC?
6. After how many days can an employee withdraw PF from their account?
Please do the needful.
Thanks & Regards,
Amol
From India, Mumbai
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Dear Amol,
You need to make monthly deductions from employees' salaries as mentioned below:
ESI Deductions
- For ESI: 1.75% on Gross Wages up to ₹15,000. After ₹15,000, employees are not eligible for the ESI Scheme.
- Employer contribution to ESI is at 4.75%.
PF Deductions
- For P.F: 12% on Basic Wages. ESI provides only sick leave.
- Pension fund eligibility is only after 10 years by P.F. Yes, employees can get the pension certificate for their EPS account and can receive the pension.
Since joining, employees are eligible for ESI benefits.
Your point no. 6 is not clear.
Regards,
Kamesh
From India, Gurgaon
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1You need to make monthly deductions from employees' salaries as mentioned below:
ESI Deductions
- For ESI: 1.75% on Gross Wages up to ₹15,000. After ₹15,000, employees are not eligible for the ESI Scheme.
- Employer contribution to ESI is at 4.75%.
PF Deductions
- For P.F: 12% on Basic Wages. ESI provides only sick leave.
- Pension fund eligibility is only after 10 years by P.F. Yes, employees can get the pension certificate for their EPS account and can receive the pension.
Since joining, employees are eligible for ESI benefits.
Your point no. 6 is not clear.
Regards,
Kamesh
From India, Gurgaon
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I think it is regarding withdrawal of PF accumulation. Any employee can withdraw his PF accumulation after a wait period of 2 months after leaving the job. Regards Shaukat Hussain
From India, Jaipur
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From India, Jaipur
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Dear, Kamesh & Hussain sir thanks for giving quick reply. my last query is that any employee can withdraw his pf at any stage without leaving organisation. Regards, Amol
From India, Mumbai
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From India, Mumbai
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During the service employee can withdraw his p.f(some part) after 7 years only. and for some special circumstances it’s 5 years. Regards, Kamesh
From India, Gurgaon
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From India, Gurgaon
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Adding further to what other members have already said, please be aware that the employer's contribution, either on P.F. or ESIC, shall not be deducted from the wages of the employee. Only the employee's contribution shall be deducted. Apart from sickness benefit, ESI also provides for medical benefit, maternity benefit, disablement benefit, etc.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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PF Withdrawal and Contribution Details
Once an employee is covered under the PF Act, they must contribute throughout their entire service period. Employees can get advances from their PF for housing, children's education, dependents' marriage, etc., but complete withdrawal is not allowed while remaining in the same employment. Full accumulation can only be withdrawn if the employee resigns or leaves the current job. During the service, full PF withdrawal is possible, but it depends on your management if they re-employ you after resignation. Thus, a reasonable break in service is required.
Regards,
Shaukat Hussain
From India, Jaipur
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Once an employee is covered under the PF Act, they must contribute throughout their entire service period. Employees can get advances from their PF for housing, children's education, dependents' marriage, etc., but complete withdrawal is not allowed while remaining in the same employment. Full accumulation can only be withdrawn if the employee resigns or leaves the current job. During the service, full PF withdrawal is possible, but it depends on your management if they re-employ you after resignation. Thus, a reasonable break in service is required.
Regards,
Shaukat Hussain
From India, Jaipur
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PF guidleines for Pension fund.pdf