Employee State Insurance & Provident Fund Prateek Aloni
Employee State Insurance Scheme • Self financing , social security and health insurance scheme for Indian Workers. • Managed by ESI Corporation. • Started in India in 1948 for factory workers. • Today it provides security to all employees from all the Industries.
Employee state Insurance act-1948 Eligibility :- Any person employed in a company having salary less than or equal to 15000.• Contribution :- Every Employee has to pay 1.75%(of GROSS salary) and employer has to pay 4.75% of the wages towards ESI contribution Contribution Period Benefit Period1st April to 30th Sept 1st Jan to 30th June of the year following1st October to 31st March 1st July to 31st Dec. of the Calendar year• Exception:- Employees in receipt of average daily wage of Rs.50/ or - less are exempted from payment of their share of contribution but are entitled for all benefits under the Scheme. However, employer has to pay employer’s contribution on the wages paid to such
Advantages to EMPLOYERS1. Absolved from the liability of providing medical allowance, reimbursement of actual medical expenses or taking medical insurance policy.2. No need to provide sick leave separately to the employees.3. Employer’s Contribution towards ESI Scheme is qualified as expenses under Income tax Act.
Medical Benefits to theEmployees Free, full and comprehensive medical care. Medical benefit is Extended to the insured person and his dependent family members from the date he / she enters the insurable employment. The Medical care consists of Out patient treatment, In patient treatment ; Diagnostic services, Free supply of drugs and dressings ; Super – specialty treatment and Hospital services.
Employee State Insurance Act-1948 Form to be used under ESI Scheme1. Form No. 1 :- ESI Declaration form for New Entrants2. Form No. 1B :- Changes in Family declaration3. Form No. 72 :- Application for Duplicate Card4. Form MRO 266 :- Application form for change of Name / Year of Birth of insured person Woman5. Form No.6 :- ESI half yearly return6. ESI Challans :- With in 21 days from the case of every Month .7. Form 37 :- For registering with Local ESI doctor
Employees’ Provident Fund Act,1952 Social Security Scheme introduced by the Central Govt. in 1952 under PF & Miscellaneous Provision act 1952. Organized by Employee Provident Fund Organization (EPFO). Basic Objective - To provide monthly compulsory savings for the employees’ consisting of matching contribution from both employee as well as employer. Almost any organization in INDIA required to have registration for PF with basic criterion of being
EPFO pays interest every year on the accumulations received in respect of the member. Present rate of interest is 8.6% on monthly running balance to the employees account. PF department issues PF slips every year to all the employees through the employer which consist of summary of opening balance of employees’ & employer’s share employees’ share, employer’s share, interest earned on employees & employer’s share.
Rate of Contribution: PF P.F. E.P.S. Adm. Total ChargesEmployees 12%* NIL NIL 12%ContributionEmployers 3.67% 8.33% 1.61% 13.61%ContributionTotal 15.67% 8.33% 1.61% 25.61% * * 12% of BASIC salary
Provident fund & Misc. Provision Act PF Process:- Filling up PF Form No. 2 ( PF & EPS Declaration form ) and send it to Zonal office for submission to PF consultant. PF number will be provided by Zonal office through PF MIS. Withdrawal & Transfer Process :- If an employee resigned , then he has to fill Form :- 13 for Transferring the PF fund from previous company to Present company. If an employee resigned , then he has to fill Form :- 19 for withdrawal of Provident fund and Form :- 10 C for withdrawal of Pension scheme. Death of an Employee :- In case death of Employee, Form:- 5(IF) for insurance refund, Form:- 20 for Provident fund withdrawal, Form 10 D for Pension Withdrawal
Provident fund Form to be used under Provident Fund Scheme1. Form 2 :- PF & EPS Declaration for every new Entrants2. Form 19 & 10C:- Withdrawal form for left employee.3. Form 13 :- For Transfer of PF / EPS.4. From 31 :- For application of advance from Fund.5. Form 10 D :- Application for pension ( Death Case ).6. Form 5 (IF) :- Insurance refund ( Death Case ).7. Form 20 :- Provident fund withdrawn ( Death case).8. Form 12 A :- Monthly return which is submitted along with triplicate copy.9. From 3A & 6A :- Annual Return.