- Date 12 Mar 2022
- Category Business
ABOUT THIS PROJECT
Employee’s Provident Fund (EPFO)
These registrations are being managed by consultancy firms on a larger basis. One of the best-known firms in Jaipur Rajasthan is Legal Dekho Services owned by Mr. Advocate Chandan Singh. The consultancy is serving various industries by providing the facility of Online EPF Registration. Now let’s discuss the facts related to the EPF.
HIGHLIGHTS OF PROVIDENT FUND / PF REGISTRATION
EPFO or PF is an arrangement made by the government and managed by Employee’s Provident Fund Organization (EPFO), which is covered under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The EPF organization is controlled by the Ministry of Labour and Employment, Government of India. The Act was framed to provide benefits to salaried class employees. Under this act, the employees are entitled to receive a pension, insurance, or special benefits on specific occasions by contributing a nominal amount towards this fund. The contribution is being deposited from applicable for both employee and employer.
Benefits of PF
Earlier this registration was being done manually by visiting the organization. But now it can be easily done online. An important investment plan for future needs has been made mandatory by the government for the employees drawing a basic salary less than Rs. 15000/-. The fund accumulated would be tax-free and if withdrawal is being made after 5 years of registration then the maturity amount with interest will also be treated as the tax-free income. The contribution also helps employees by facilitating to the withdrawal of partial amounts for expenses like house construction, daughter’s wedding, in the case of critical illness, higher education, etc. Thus, it is very important to contribute towards this fund for both employer and employee.
12% of Basic Salary of Employee deposited directly towards EPF
12% of Employer contribution is divided as –
8.33% of contribution towards Employees’ Pension Scheme
3.67% of contribution towards Employees’ Provident Fund
1.1% of contribution towards EPF Administration Charges ( After 01/04/2017 0.65% )
0.5% of contribution towards Employees’ Deposit Linked Insurance ( minimum RS. 500/-)
0.01% of contribution towards EDLI Administration Charges( After01/04/2017 RS. 0/-)
Employee’s State Insurance Corporation (ESIC)
Employee State Insurance Corporation Act 1948 was introduced by the government to provide social security and medical facilities to employees and their families. The Act is applicable to the employees drawing a gross monthly salary of Rs. 21000/-. The fund contributed towards ESIC is being managed by Employee State Insurance Corporation. Registered employees and their families are eligible to get medical benefits including surgical and obstetric treatment, ambulance services, supply of all drugs, super-specialty consultation, etc.
HIGHLIGHTS OF ESIC REGISTRATION
ESIC Registration is applicable to the establishments which in an implemented area and have more than 10 employees. Once, the organization gets registered, a 17 digit unique identification code will be allotted to them. It is the statutory responsibility of the employer to get registered under this act after achieving the said employee level within 15 days.
Benefits of ESI
Provides complete medical assistance to the employee
It also includes dependents
These benefits can be availed at different ESI dispensaries, clinics, and hospitals
Any payment made at the hospital is completely reimbursable
ESIC contribution is must be made by the employer for all employees drawing a monthly gross salary of up to Rs.21,000 per month. The employer contribution is 4.75% and the employee contribution is 1.75% of the wages. The total contribution made towards ESI Fund will be 6.50% of the total monthly gross.