Regarding pf and esi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 Dear Sir,

To whom PF and ESI will apply? On what basis it has been deducted.? What is the percentage to be deducted for PF and ESI?

Regards,
Dhanapal. A

Anil Sankar V

Anil Sankar V (Expert)
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01 May 2013 The promulgation of Employees’ State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good medical care to workers and their immediate dependants.

Employee
1.75% of Basic

Employer:-
4.75% of Basic
&
Admin Charges
1.61%

IN case of PROVIDENT FUND:

"Employee" as defined in Section 2(f) of the Act means any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of the establishment.

Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include
(A) The cash value of any food concession;
(B) Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment.
(C) Any present made by the employer.

Employee:
8.33% Pension Fund
3.67% PF Fund

Employer Rate:-

12% Basic
1.61% Admin Charges