Hello, I have some basic doubts regarding PF & ESI.
First of all, after getting candidates done with filling their PF forms at the time of induction, where are these forms being submitted and how to open a PF account for your employee, and what are all the challans that are needed to be taken for this process.
What is ESI - all about it in practice? How is this ESI given to employees, I mean percentages and such?
What about gratuity? It would be greatly appreciated if someone could take the time to clear my above doubts in an explanatory manner.
Thanks and regards,
Kiran.
From Netherlands
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18First of all, after getting candidates done with filling their PF forms at the time of induction, where are these forms being submitted and how to open a PF account for your employee, and what are all the challans that are needed to be taken for this process.
What is ESI - all about it in practice? How is this ESI given to employees, I mean percentages and such?
What about gratuity? It would be greatly appreciated if someone could take the time to clear my above doubts in an explanatory manner.
Thanks and regards,
Kiran.
From Netherlands
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Hi Kiran,
Let me start by answering your questions one at a time!
Firstly, an organization has to have a Provident Fund - this could either be through the PF main office at Bandra or they can internally set up a PF fund. If the PF is with the main office, then after the forms are filled, the same need to be submitted to the office where you will receive an acknowledgment for the same.
For the PF numbers - they will be in a chronological order after your mail PF number e.g., MH-1234-01, MH-1234-02, MH-1234-03, MH-1234-04, etc. I suggest you get a PF & ESIC consultant to help you out on a retainership basis.
Challans are to be filled while paying the PF amounts to the PF office, and they are divided into Employee share, Employer share, and Admin charges.
ESIC is the Employees' State Insurance Corporation wherein any employee drawing a salary of Rs. 7500/- and below is covered under this scheme. Under this scheme, the employees are eligible for free/reduced medical help at any of the ESIC hospitals and ESIC-recognized doctors. Here too there is a contribution from the employer as well as the employee. The employer's contribution is 4.75% and the employee's contribution is 1.75% (the last that I know about unless it has changed).
Gratuity is applicable for an organization after 5 years of existence, and all employees have to be covered under the same. You can take a gratuity policy from LIC, and they will guide you as to what the amount of premium is and the details of the policy. Any employee who has been with the organization for more than 5 years is eligible for gratuity.
For more details on PF and ESIC - read the law and engage a consultant, and for Gratuity interact with LIC.
Hope this helps you!
Regards,
Chanchal
From India, Mumbai
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Let me start by answering your questions one at a time!
Firstly, an organization has to have a Provident Fund - this could either be through the PF main office at Bandra or they can internally set up a PF fund. If the PF is with the main office, then after the forms are filled, the same need to be submitted to the office where you will receive an acknowledgment for the same.
For the PF numbers - they will be in a chronological order after your mail PF number e.g., MH-1234-01, MH-1234-02, MH-1234-03, MH-1234-04, etc. I suggest you get a PF & ESIC consultant to help you out on a retainership basis.
Challans are to be filled while paying the PF amounts to the PF office, and they are divided into Employee share, Employer share, and Admin charges.
ESIC is the Employees' State Insurance Corporation wherein any employee drawing a salary of Rs. 7500/- and below is covered under this scheme. Under this scheme, the employees are eligible for free/reduced medical help at any of the ESIC hospitals and ESIC-recognized doctors. Here too there is a contribution from the employer as well as the employee. The employer's contribution is 4.75% and the employee's contribution is 1.75% (the last that I know about unless it has changed).
Gratuity is applicable for an organization after 5 years of existence, and all employees have to be covered under the same. You can take a gratuity policy from LIC, and they will guide you as to what the amount of premium is and the details of the policy. Any employee who has been with the organization for more than 5 years is eligible for gratuity.
For more details on PF and ESIC - read the law and engage a consultant, and for Gratuity interact with LIC.
Hope this helps you!
Regards,
Chanchal
From India, Mumbai
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Hi,
Thank you very much for updating our knowledge about the same.
I have a query regarding my previous employment. I was employed as an outsourced employee, and my Provident Fund (PF) was being deducted. I applied to withdraw the PF amount two months ago, but I have not received any response yet. Neither from the PF authority nor from the firm that had me on their payroll.
Where can I inquire about the status of my PF withdrawal request?
Please assist me.
Regards,
Amit
From India, Delhi
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Thank you very much for updating our knowledge about the same.
I have a query regarding my previous employment. I was employed as an outsourced employee, and my Provident Fund (PF) was being deducted. I applied to withdraw the PF amount two months ago, but I have not received any response yet. Neither from the PF authority nor from the firm that had me on their payroll.
Where can I inquire about the status of my PF withdrawal request?
Please assist me.
Regards,
Amit
From India, Delhi
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Hi Amit,
Glad I could help!!
Well, the PF rules for withdrawal of PF from an organization are as follows:
1. The employee has to fill up the withdrawal forms for his/her PF after 2 months from the date of leaving the organization.
2. The forms are then signed by the authorized signatory of your organization and submitted to the PF office.
3. The PF withdrawal procedure then takes another 2-3 months before it reaches your bank account.
If you need to check the status of the same, please first check with your organization if they have sent the forms to the PF office. If they have, then request them for your PF number, and you could call up the PF office on your own, give them your PF number as a reference, and check the status of the same.
Hope this helps you!!
Regards,
Chanchal
From India, Mumbai
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Glad I could help!!
Well, the PF rules for withdrawal of PF from an organization are as follows:
1. The employee has to fill up the withdrawal forms for his/her PF after 2 months from the date of leaving the organization.
2. The forms are then signed by the authorized signatory of your organization and submitted to the PF office.
3. The PF withdrawal procedure then takes another 2-3 months before it reaches your bank account.
If you need to check the status of the same, please first check with your organization if they have sent the forms to the PF office. If they have, then request them for your PF number, and you could call up the PF office on your own, give them your PF number as a reference, and check the status of the same.
Hope this helps you!!
Regards,
Chanchal
From India, Mumbai
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Hi Chanchal,
Knowing the topic of discussion is PF and ESI, I have a doubt regarding PF. Assuming an employee is working with "X" company for 1 year. After 1 year, the amount accrued in his PF account is 40,000. In an emergency, if the employee wants to withdraw the amount that is accrued in his account, is he allowed to do it? If so, what is the procedure that needs to be followed? Can he check the PF account details online? Please provide me the link if so!
Regards,
Abi
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Knowing the topic of discussion is PF and ESI, I have a doubt regarding PF. Assuming an employee is working with "X" company for 1 year. After 1 year, the amount accrued in his PF account is 40,000. In an emergency, if the employee wants to withdraw the amount that is accrued in his account, is he allowed to do it? If so, what is the procedure that needs to be followed? Can he check the PF account details online? Please provide me the link if so!
Regards,
Abi
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Hi Abi,
Well, the one instance that I know of wherein an employee can withdraw the PF amount on an urgent basis is when he/she is leaving the country for another job or is relocating to another country. For this, the employee needs to submit his/her visa, air tickets, proof of employment, etc., for the same. I am not aware of any other instance wherein it can be withdrawn on an urgent basis - you will need to check the same with the local PF office.
As for a link to the PF office, I am afraid, but I don't think there is a website for the same...
Chanchal
From India, Mumbai
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Well, the one instance that I know of wherein an employee can withdraw the PF amount on an urgent basis is when he/she is leaving the country for another job or is relocating to another country. For this, the employee needs to submit his/her visa, air tickets, proof of employment, etc., for the same. I am not aware of any other instance wherein it can be withdrawn on an urgent basis - you will need to check the same with the local PF office.
As for a link to the PF office, I am afraid, but I don't think there is a website for the same...
Chanchal
From India, Mumbai
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Hi Chanchal,
Thank you very much for your prompt reply. Apart from visiting outstation, are we allowed to withdraw the current amount while leaving the PF account open? For example, can one withdraw the present PF amount without closing the account?
Regards,
Abi
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Thank you very much for your prompt reply. Apart from visiting outstation, are we allowed to withdraw the current amount while leaving the PF account open? For example, can one withdraw the present PF amount without closing the account?
Regards,
Abi
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Hi Abi,
Welcome! Yes, one can withdraw from the PF account without closing it, but there is a catch to it. An employee needs to be a member of the Provident Fund for a minimum of around 3-4 years. He/she can withdraw or take a loan from the account for specific reasons like marriage, house loan, further studies, etc. The amount sanctioned will never be all the amount in the account and will vary from 30% to 70% of the amount in the account.
For more details on the same, I would advise you to consult a PF consultant and/or the local PF office.
Regards,
Chanchal
From India, Mumbai
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Welcome! Yes, one can withdraw from the PF account without closing it, but there is a catch to it. An employee needs to be a member of the Provident Fund for a minimum of around 3-4 years. He/she can withdraw or take a loan from the account for specific reasons like marriage, house loan, further studies, etc. The amount sanctioned will never be all the amount in the account and will vary from 30% to 70% of the amount in the account.
For more details on the same, I would advise you to consult a PF consultant and/or the local PF office.
Regards,
Chanchal
From India, Mumbai
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