Kindly let me know where to look for the amendments in ESI and PF and also knowledge about other statutory compliances like gratuity, bonus etc. Opened the EPI website but where will i find i have seen lot of people suggest this. If a firm has more than 20 employees then only PF and ESI will apply otherwise not am i correct?
From India, Lucknow
From India, Lucknow
EPF-(Employee provident Fund 1952)-To promote Retirement Savings
EPS-(Employee Pension Scheme 1995) –Provide Post Retirement Savings
EDLI- (Employee Deposit Linked Insurance Scheme 1976)- Relief to family members in case of sudden death
Interest Rate-8-9 %
Withdraw Reason- Medical emergencies, Marriage, Home Loan, House construction
10% rate is applicable for
• Any establishment in which less than 20 employees are employed.
• Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
• Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
• Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
## Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution. The Employer Share is difference of the EE Share (payable as per statute) and Pension Contribution.
!! Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable. Note: - If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-
@@ In case Establishment is exempted under PF Scheme, Inspection charges @0.18%, minimum Rs 5/- is payable in place of Admin charges. In case the Establishment is exempted under EDLI Scheme, Inspection charges
@ 0.005%, minimum Re 1/- is payable in place of Admin charges.
ESIC-
Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons.
The State Govt. has extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
Contribution
.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept.1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Benefits
The section 46 of the Act envisages following six social security benefits:-
(a) Medical Benefit
(b) Sickness Benefit (SB)
1. Extended sickness Benefit (ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit (MB)
(d) Disablement Benefit
1. Temporary disablement benefit (TDB)
2. Permanent disablement benefit (PDB)
(e) Dependent’s Benefit (DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers’ wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.
In addition, the scheme also provides some other need based benefits to insured workers.
These includes:
i. Rehabilitation allowance
ii. Vocational Rehabilitation
iii. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)
LWF-
What is Labour Welfare Fund?
Labour welfare is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
(Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc.) And in some states it is to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra etc.).
In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories.
The last date of deduction of the contribution amount is 30 June and 31 December every year. The employers must file the returns to the Maharashtra Labour Welfare Board on or before 15 July and 15 January every year.
Maternity Benefits Act -1961
-She must less than 80 days in the 12 months immediately preceding the date of her delivery.
-Given written notice to the employer about 7 weeks before the date of the delivery that she will be absent before & after her delivery.
-After delivery within 48 hours of a child birth, a proof of pregnancy is required.
-In case of miscarriage -6 weeks leave
-Tubectomy operation - Leave with wages @ of maternity benefit for a period of 2 weeks.
-Nursing Breaks- 4 [Including rest interval]
-Increase of maternity benefit-
-Paid maternity leave increased to 26 weeks.
-Leave prior to expected delivery date -8 Weeks (2 Month)
-Leave after delivery -18 weeks (4 Month)
Minimum Wages Act 1948-
Rate of Wages-
Revised from 1st Jan 2024 to 30th June 2024
Skilled
14700/- Per Month
Semi-skilled
13,924/- Per Month
Unskilled 13,089/- Per Month
Minimum rate of wages.
An Act to provide for fixing minimum rates of wages in certain employments. WHEREAS it is expedient to provide for fixing minimum rates of wages in certain employments;
1] Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under section 3 may consist of—
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance"); or
(ii) (ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorized; or
(iii) (iii) An all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.
2] The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rates shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate Government.
Minimum time rate wages for piece work.- Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate.
The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent.
THE PAYMENT OF WAGES ACT, 1936-
The Payment of Wages Act, 1936 (Act) is essentially meant to benefit industrial employees who do not have very high salaries. It applies to all employees working in a factory or working through a sub-contractor or directly with the railway administration or those employed in the industrial sector as the Act specifies.
In 2017, the Government of India increased the ceiling limit to Rs. 24,000 per month. This means that employees with wages u to the ceiling limit are covered under the Act.
Wages 2(vi)
Wages mean all remunerations expressed in terms of money or are capable of being so expressed.
Time period of wages (Sec 5)-
Where there are <1000 persons employed wages shall be paid before of the 7th day after the last day of the wage period.
Where there are >1000 persons employed wages shall be paid before of the 10th day after the last day of the wage period.
In case employer terminates the service of an employee, the employee is entitled to receive his dues within expiry of 2 working days.
Mode of wage payment (Sec 6)-
Currency coins, Cheque, Direct credit to employee’s bank account.
Total amount of deductions [Sec 7(3, 4)]-
Co-operative societies –Not exceeding 75% of wage
Other Cases-Not exceeding 50% of wage
Registers Records & Notices [Sec 13 A]-
1-Particulars of person employed (Attendance)
2-The work performed by them
3-The wage period to them
4-Deduction made from wages
5-Receipts given by them of a period of 3 month after the date of last entry date.(salary slip)
From India, Mumbai
EPS-(Employee Pension Scheme 1995) –Provide Post Retirement Savings
EDLI- (Employee Deposit Linked Insurance Scheme 1976)- Relief to family members in case of sudden death
Interest Rate-8-9 %
Withdraw Reason- Medical emergencies, Marriage, Home Loan, House construction
10% rate is applicable for
• Any establishment in which less than 20 employees are employed.
• Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
• Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
• Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
## Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution. The Employer Share is difference of the EE Share (payable as per statute) and Pension Contribution.
!! Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable. Note: - If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-
@@ In case Establishment is exempted under PF Scheme, Inspection charges @0.18%, minimum Rs 5/- is payable in place of Admin charges. In case the Establishment is exempted under EDLI Scheme, Inspection charges
@ 0.005%, minimum Re 1/- is payable in place of Admin charges.
ESIC-
Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons.
The State Govt. has extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
Contribution
.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept.1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Benefits
The section 46 of the Act envisages following six social security benefits:-
(a) Medical Benefit
(b) Sickness Benefit (SB)
1. Extended sickness Benefit (ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit (MB)
(d) Disablement Benefit
1. Temporary disablement benefit (TDB)
2. Permanent disablement benefit (PDB)
(e) Dependent’s Benefit (DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers’ wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.
In addition, the scheme also provides some other need based benefits to insured workers.
These includes:
i. Rehabilitation allowance
ii. Vocational Rehabilitation
iii. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)
LWF-
What is Labour Welfare Fund?
Labour welfare is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
(Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc.) And in some states it is to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra etc.).
In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories.
The last date of deduction of the contribution amount is 30 June and 31 December every year. The employers must file the returns to the Maharashtra Labour Welfare Board on or before 15 July and 15 January every year.
Maternity Benefits Act -1961
-She must less than 80 days in the 12 months immediately preceding the date of her delivery.
-Given written notice to the employer about 7 weeks before the date of the delivery that she will be absent before & after her delivery.
-After delivery within 48 hours of a child birth, a proof of pregnancy is required.
-In case of miscarriage -6 weeks leave
-Tubectomy operation - Leave with wages @ of maternity benefit for a period of 2 weeks.
-Nursing Breaks- 4 [Including rest interval]
-Increase of maternity benefit-
-Paid maternity leave increased to 26 weeks.
-Leave prior to expected delivery date -8 Weeks (2 Month)
-Leave after delivery -18 weeks (4 Month)
Minimum Wages Act 1948-
Rate of Wages-
Revised from 1st Jan 2024 to 30th June 2024
Skilled
14700/- Per Month
Semi-skilled
13,924/- Per Month
Unskilled 13,089/- Per Month
Minimum rate of wages.
An Act to provide for fixing minimum rates of wages in certain employments. WHEREAS it is expedient to provide for fixing minimum rates of wages in certain employments;
1] Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under section 3 may consist of—
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance"); or
(ii) (ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorized; or
(iii) (iii) An all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.
2] The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rates shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate Government.
Minimum time rate wages for piece work.- Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate.
The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent.
THE PAYMENT OF WAGES ACT, 1936-
The Payment of Wages Act, 1936 (Act) is essentially meant to benefit industrial employees who do not have very high salaries. It applies to all employees working in a factory or working through a sub-contractor or directly with the railway administration or those employed in the industrial sector as the Act specifies.
In 2017, the Government of India increased the ceiling limit to Rs. 24,000 per month. This means that employees with wages u to the ceiling limit are covered under the Act.
Wages 2(vi)
Wages mean all remunerations expressed in terms of money or are capable of being so expressed.
Time period of wages (Sec 5)-
Where there are <1000 persons employed wages shall be paid before of the 7th day after the last day of the wage period.
Where there are >1000 persons employed wages shall be paid before of the 10th day after the last day of the wage period.
In case employer terminates the service of an employee, the employee is entitled to receive his dues within expiry of 2 working days.
Mode of wage payment (Sec 6)-
Currency coins, Cheque, Direct credit to employee’s bank account.
Total amount of deductions [Sec 7(3, 4)]-
Co-operative societies –Not exceeding 75% of wage
Other Cases-Not exceeding 50% of wage
Registers Records & Notices [Sec 13 A]-
1-Particulars of person employed (Attendance)
2-The work performed by them
3-The wage period to them
4-Deduction made from wages
5-Receipts given by them of a period of 3 month after the date of last entry date.(salary slip)
From India, Mumbai
Thats very nice of you..thank you so much..but the changes will keep on happening in future.where should i look for further changes in these for future to keep myself abreast.
From India, Lucknow
From India, Lucknow
You can read out the new amendments on google. You will get more information about a Legal Act.
From India, Mumbai
From India, Mumbai
Thanks Sujata,Is there any other way apart from google that i can keep a tab on the amendments and have knowledge about statutory compliances.
From India, Lucknow
From India, Lucknow
Here's a guide on where to look:
1. Official Websites
Employees' Provident Fund Organisation (EPFO): The EPFO's official website (epfindia.gov.in) is the primary source for updates on PF. Look for sections like "Circulars" under the "Documents" tab for the latest notifications, amendments, and guidelines.
Employees' State Insurance Corporation (ESIC): For ESI, visit the ESIC's official website (esic.in). Similar to the EPFO website, check for updates in the "Circulars/Notices" section under the "What's New" or "Publications" tab.
Ministry of Labour and Employment: The ministry's website (labour.gov.in) provides comprehensive information on various labor laws, including updates and amendments.
2. Legal Databases and Platforms
Platforms like Manupatra, India Kanoon, and SCC Online provide access to legal documents, case laws, and amendments. These platforms might require a subscription.
3. Professional Advisory Services
Consulting with a legal advisor or a consultancy firm specializing in labor laws can provide personalized advice and keep you updated on compliance requirements.
4. Industry Associations and Bodies
Associations like CII (Confederation of Indian Industry), FICCI (Federation of Indian Chambers of Commerce & Industry), and NASSCOM often provide updates and guidance on statutory compliances to their members.
Understanding PF and ESI Applicability
Employees' Provident Fund (PF): Generally, the PF is applicable to establishments employing 20 or more employees. However, certain establishments can opt for PF coverage voluntarily even if they have fewer than 20 employees.
Employees' State Insurance (ESI): The ESI scheme is applicable to non-seasonal factories employing 10 or more persons. However, the threshold varies for different states and sectors, with some extending to establishments with 20 or more employees.
Other Statutory Compliances
Gratuity: The Payment of Gratuity Act, 1972, applies to establishments with 10 or more employees. Employees become eligible for gratuity after five years of continuous service.
Bonus: The Payment of Bonus Act, 1965, applies to establishments with 20 or more employees. However, once the Act becomes applicable, it continues to apply even if the number of employees falls below 20.
To ensure compliance and stay updated on the latest amendments, regularly check the official websites and consider subscribing to newsletters or updates from legal advisory services. Additionally, participating in workshops, seminars, and webinars on labor laws and statutory compliance can also be beneficial.
From India, Mumbai
61. Official Websites
Employees' Provident Fund Organisation (EPFO): The EPFO's official website (epfindia.gov.in) is the primary source for updates on PF. Look for sections like "Circulars" under the "Documents" tab for the latest notifications, amendments, and guidelines.
Employees' State Insurance Corporation (ESIC): For ESI, visit the ESIC's official website (esic.in). Similar to the EPFO website, check for updates in the "Circulars/Notices" section under the "What's New" or "Publications" tab.
Ministry of Labour and Employment: The ministry's website (labour.gov.in) provides comprehensive information on various labor laws, including updates and amendments.
2. Legal Databases and Platforms
Platforms like Manupatra, India Kanoon, and SCC Online provide access to legal documents, case laws, and amendments. These platforms might require a subscription.
3. Professional Advisory Services
Consulting with a legal advisor or a consultancy firm specializing in labor laws can provide personalized advice and keep you updated on compliance requirements.
4. Industry Associations and Bodies
Associations like CII (Confederation of Indian Industry), FICCI (Federation of Indian Chambers of Commerce & Industry), and NASSCOM often provide updates and guidance on statutory compliances to their members.
Understanding PF and ESI Applicability
Employees' Provident Fund (PF): Generally, the PF is applicable to establishments employing 20 or more employees. However, certain establishments can opt for PF coverage voluntarily even if they have fewer than 20 employees.
Employees' State Insurance (ESI): The ESI scheme is applicable to non-seasonal factories employing 10 or more persons. However, the threshold varies for different states and sectors, with some extending to establishments with 20 or more employees.
Other Statutory Compliances
Gratuity: The Payment of Gratuity Act, 1972, applies to establishments with 10 or more employees. Employees become eligible for gratuity after five years of continuous service.
Bonus: The Payment of Bonus Act, 1965, applies to establishments with 20 or more employees. However, once the Act becomes applicable, it continues to apply even if the number of employees falls below 20.
To ensure compliance and stay updated on the latest amendments, regularly check the official websites and consider subscribing to newsletters or updates from legal advisory services. Additionally, participating in workshops, seminars, and webinars on labor laws and statutory compliance can also be beneficial.
From India, Mumbai
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STATUTORY COMPLIANCES CHECKLIST ON VARIOUS LABOUR LAWS.xls