Plz Let Me Know The Rules And Procedure Of Pf And ESI

Dear Senior,
I am working in an NGO,as Hr Generalist.I want to know all the rules procedure regarding PF & ESI.I was about to promote in the Organization,but because of not having proper knowledge of the rules & procedures of PF & ESI,I was not promoted.
As far as my work experience concern,then I have been working here since 8 months & this is my first job.I have completed Master in Personnel Management from Pune University in June 2010.
I request you all.plz let know all the facts,rules,regulation,procedures,forms
means everything about PF & ESI as soon as possible.
Eagerly waiting for your replies.
Thanking You
With Regards,
Shweta Singh

Dear Shweta,
How are you?
Please refer the Labour Law Books, you will get maximum knowledge than ever.
But as you said you are fresher for the statutory, i would like to suggest you, to read these acts first.
And if in any case you need help , we are there for you.
B/R
DK Sharma

Dear Sir,
I am fine,thanks for your concern.I have almost read the EPF ACT 1952 and ESI ACT 1948 in my college days,please don't take it in otherwise.I want to know about all the forms,rules & regulations.
Since,I hardly get chance to work in PF & ESI in my organization,because whenever I ask for the work in PF & ESI,then my senior tells me,there is some complication,so from next month I'll give you work in this.I have been listening this since 8 months.I am very much interested to work on this.
So can you plz tell me the way,by which I'll be expert in this.
Plz seniors help me out,I am eagerly waiting for your replies.
Thanking You
With Regards,
Shweta Singh

Kindly search PF calculation on this site, i have found the following few days ago this might help:

The PF is payable on Basic+DA and the encashment of EL only not on the whole salary first.

Now if the Basic + DA of an employee is Rs. 10000.00 Then the deduction shall be as follows:-

1. Employee Share@12%= Rs.1200.00 (Deposite in A/c No.-1)

2.Employer Share@8.33% (Maxium uptoRs.6500.00)=Rs.541.00 (Deposit in A/c No.-10)

This is the maxium limit of amount which goes to the FPF(As the Basic is more than that of Rs.6500.00 in the case as mentioned above)

3. Employer Share@3.67%(Difference B/W12%-8.33%)=Rs.659.00(Deposit in A/c No.1)

4. Admn Charge payable by the employe on Total amount i.e.Rs.10000.00@1.1%=Rs.110.00 (Deposite in A/c No.-2)

5.EDLI charges payable by the Employer upto Rs.6500.00@.5%=Rs.33.0 (Deposite in A/c No-21.

6. Admn. Charges to EDLI@.01%=Rs.2.00 Minimum.

If you adopted a policy in lieu of EDLI from LIC or any where else and got the exemption form the competent authority, then in that case you have not to pay the EDLI charges to the PF Department. You have to pay the Admn. Charges to EDLI @.005%.

Employee State Insurance Act, 1948:

 ESI : Employee State Insurance is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 15000/-permonth (w.e.f 2010) and Employer contributes 4.75%

on the gross salary of the employee and the aggregate 1.75% + 4.75% is remitted to the

ESI Department.

4.75% of gross salary (Employers contribution) +1.75% of gross salary (Employees Contribution)

Note: The person who r getting more above 15,000 Gross salary, is not applicable for ESI Act

Example:

Employee Side- 1.75% of gross/month

So if gross of an employee is 8000/month then

ESI contribution would be 8000*1.75% = 140 Rupees

Employer side- 4.75% of gross/month

ESI contribution would be 8000* 4.75% = 380 Rupees.

Salary Structure:(Vary from Company to Company and Cities to Cities)

BASIC + DA = 25-30% of CTC / 30-35% of CTC / 40-50% of CTC

(Dearness Allowance is a component, which fluctuates to handle inflation)

HRA = Maximum 50% basic (Metro cities) 40% basic (non metro cities)

Conveyance Allowances = 800 (fixed) (Vary from company / Place to Company / Place)

Other Allowances like

CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly)

gross pay + employers pf+employers ESI + bonus = CTC

i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.

CTC is cost to company and the components are

Basic

+HRA

+CONVEYANCE

+MOBILE REIMBURSHMENT

+MEDICAL reimburshment

+All allowances

+LTA

+employer cotri of PF

+Employer Cotri towards ESI

+Total variable incentives

+Perks & benefits

+ insurance Premium (in case of Group insurance)

Hi Shewta,
I m also advised to you for read the Act. Actually the basic things you will came to know, then you can do it n.
Basic rule of ESI.
As you know the celling of ESI 15000/-
on that account both parties contribute. one is Employee's & IInd is Employees. both of them their calculation are diffrent like employer pay 4.75% and employees pay 1.75%. mean total contribution 6.5. that was the basic rules of esi.
inspite of that what type of salary components providing employe'r. As per act on washing allowance did not deduct ESI.
thanks & regards
Rajesh Kumar

Sir,
I am working in a cement company on contract base my ESI are already deduct from my salary last four years but i have no any ESI card provide by contractor. Please tell me what i have to do and what about the money which deduct from my salary since last four years.

It is not simply replyable over mails. Pl go through Labour Law books available in the market.
Srinivasa Bhushanam

It is not simply replayable over mails. Please go through Labour Law books available in the market.
Srinivasa Bhushanam

Dear Sir
I am working as Executive and have some confusion in ESI, suppose when ESI is deducted and no one has recieved card as well as number, So if any employee get injured than how that employee will be benifited and remittance will be paid
Thanks & Regards
Radhe Shyam Singh

Hi Kuldeep,
If your contractor has not helped you out.... please take time-out and visit the 'Local Office' of ESIC (Employee State Insurance Corporation). Please carry your 'Temporary Identification Certificate' (TIC) with you. TIC might have been issued to you when you or your contractor first registered for ESI. The only problem being TIC is like an acknowledgement valid for 3 months.
You have all the rights to possess an IDENTITY CARD. It helps you and your family to cover certain expenses.
PLEASE DONT SIT AROUND THINKING WHAT TO DO NEXT..... take the initiative.... and along with you TAKE the support of OTHER EMPLOYEES from your company who's ESI contribution is being deducted from your salaries...
It is your RIGHT....!
Regards
Lionel
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