1. Employee State Insurance
&
Provident Fund
Prateek Aloni

2. 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.

3. 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 Period
1st April to 30th Sept 1st Jan to 30th June of the year
following
1st 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

4. Benefits of ESI

5. Advantages to EMPLOYERS
1. 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.

6. Benefits to the EMPLOYEES

7. Medical Benefits to the
Employees
 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.

8. Employee State Insurance Act-1948
 Form to be used under ESI Scheme
1. Form No. 1 :- ESI Declaration form for New Entrants
2. Form No. 1B :- Changes in Family declaration
3. Form No. 72 :- Application for Duplicate Card
4. Form MRO 266 :- Application form for change of
Name / Year of Birth of insured person Woman
5. Form No.6 :- ESI half yearly return
6. ESI Challans :- With in 21 days from the case of every
Month .
7. Form 37 :- For registering with Local ESI doctor

9. Provident fund & Misc.
Provision Act

10. 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

11.  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.

12. Rate of Contribution: PF
P.F. E.P.S. Adm. Total
Charges
Employees' 12%* NIL NIL 12%
Contribution
Employers 3.67% 8.33% 1.61% 13.61%
Contribution
Total 15.67% 8.33% 1.61% 25.61%
* * 12% of BASIC salary

13. 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

14. Provident fund
 Form to be used under Provident Fund Scheme
1. Form 2 :- PF & EPS Declaration for every new Entrants
2. 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.

15. THANK YOU….