28 April 2016
ESI -Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons. Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs. *Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same. The existing wage limit for coverage under the Act is Rs. 15,000/- per month Gross Salary( w.e.f. 01/05/2010). ESI Employee Contribution 1.75% And Employer 4.75% Total 6.5% to Be paid Monthly
PF-Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to: Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. Employing 20 or more persons .Cinema Theatres employing 5 or more persons.
Voluntary Coverage If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment ( voluntary coverage under section 1(4) )
the Employees' Provident Fund and Miscellaneous Provisions Scheme, 1952 (EPF Scheme) from Basic Salary INR 6,500 to INR 15,000, with effect from 1 September 2014. The Employees' Provident Fund Organisation (EPFO) has, by its circular dated 28 August 2014. Above 15000 Basic it is Employer discreation to Pay PF to the extent of R.15000/- or Actual Basic .
Employee Contribution 12% Full towards PF ,Employer contribution 12% (3.67% PF +8.33%Pension)Employer has to pay additional 1.61% towards Administrative charges (1.10% Adm charges +.50 % EDLIF Charges) =13.61%
Note: Pension value 8.33% is always constant PF value can be variable depending on the Basic & DA
Exemption Limit For ESI Above 15000/- Gross Salary exemption Limit For PF Above 15000/ BASIC+DA
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