What is the process of PF and ESICFormality. IS ESI same as ESIC. What is the process?. Whoes work is it? Accounts Dept or HR Dept Regards Jaya Ramprakash :?:
From India, Mumbai
8From India, Mumbai
Hi Jaya,
The formalities for ESI is you must have a strength of 20 employees, no matter whether they are getting salary more than 10000/- or lesser. As maxcimum ceiling of ESI contribution is upto 10000/- Gross/Month only. Those getting 10001/- will be exempted from the ESI.
Yes ESI and ESIC is same. ESIC stands for Employee State Insurance Corporation..
The Employer should get the Factory or Establishment registered with the ESI Corporation within 15 days of the applicability of ESI Act. The declaration of registration is to be filled in form 01, along with a separate sheet containing the name and address of the Establishment, number of employees, nature of duty and name, designation and address of the manager controlling such persons, in respect of office situated outside. After been satisfied with the application the ESI regional office will allot a code number to the employer.
After that only you can register your emplyees with the ESI. They have to fill up a declaration form FORM 1, written clearly Male or Female. All the declaration forms should be counter signed by the employer.
Then prepare a return of declaration in form 3 separate for Male & Female within 10 days of filling of declaration form.
Then every employee shall be alloted an temporary identification number.
For PF formalities the company must be 3 years old. After that only it can be registered with the PF department. Even for this Act also the minimum number of employee should be 20.
Every employer of an establishment to which the Employee Provident Fund Act applies, should submit in Form 5A(in duplicate) to the commisioner, particulars of all the branches and departments, owners, directors, partners if any or any other person who is controlling its affair within 15 days of its applicability of the scheme.
On receipt of Form 5A, the commisioner shall verify the particulars submitted and after been satisfied shall allot an Establishment Code No.
Hope now it will be very much clear with you.
Feel freeto revert if any problem is there to get it understand.
Regards,
Amit Seth.
From India, Ahmadabad
The formalities for ESI is you must have a strength of 20 employees, no matter whether they are getting salary more than 10000/- or lesser. As maxcimum ceiling of ESI contribution is upto 10000/- Gross/Month only. Those getting 10001/- will be exempted from the ESI.
Yes ESI and ESIC is same. ESIC stands for Employee State Insurance Corporation..
The Employer should get the Factory or Establishment registered with the ESI Corporation within 15 days of the applicability of ESI Act. The declaration of registration is to be filled in form 01, along with a separate sheet containing the name and address of the Establishment, number of employees, nature of duty and name, designation and address of the manager controlling such persons, in respect of office situated outside. After been satisfied with the application the ESI regional office will allot a code number to the employer.
After that only you can register your emplyees with the ESI. They have to fill up a declaration form FORM 1, written clearly Male or Female. All the declaration forms should be counter signed by the employer.
Then prepare a return of declaration in form 3 separate for Male & Female within 10 days of filling of declaration form.
Then every employee shall be alloted an temporary identification number.
For PF formalities the company must be 3 years old. After that only it can be registered with the PF department. Even for this Act also the minimum number of employee should be 20.
Every employer of an establishment to which the Employee Provident Fund Act applies, should submit in Form 5A(in duplicate) to the commisioner, particulars of all the branches and departments, owners, directors, partners if any or any other person who is controlling its affair within 15 days of its applicability of the scheme.
On receipt of Form 5A, the commisioner shall verify the particulars submitted and after been satisfied shall allot an Establishment Code No.
Hope now it will be very much clear with you.
Feel freeto revert if any problem is there to get it understand.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Amit,
You have explained stuff very nicely..........
Could you let know benefits one can get after receiving TIC?...and how much time will it take to get PIC..
Throw some light on Cash benefits under ESIC..Eligibility and all..
Thanks in anticipation...
Regards,
Chaitali
Surat, Gujarat.....
From India, Vadodara
You have explained stuff very nicely..........
Could you let know benefits one can get after receiving TIC?...and how much time will it take to get PIC..
Throw some light on Cash benefits under ESIC..Eligibility and all..
Thanks in anticipation...
Regards,
Chaitali
Surat, Gujarat.....
From India, Vadodara
Hi Chaitali,
Thanks.. for such a wonderful compliments.
After gettin TIC one may get benefits at the ESI dispensaries but before that he has to collect a medical card from the ESI office only.
The PIC is been alloted within 1 month from getting the TIC but the employee can receive it only after completion of 3 months of services with the organisation.
The amount of benefit is calculated with respect to the contributions paid during the correspondening "contribution period" which are as below-
1. If contribution period is 1st April to 30th September then you may avail the benefits of those in the period of 1st January to 30th June of the following year and
2. If contribution period is 1st Oct to 31st Mar of the following year then one may avail benefits of those in the period of 1st July to 31st Dec.
The ESI department has some standard benefit rate,which is in turn linked to the average daily wages of the employee.
Standard Benefit Rate-
1.If Average daily wages is <28 then 14 or full average daily wage
2.If ____________ >= 28 but < 32 then _______ 16 or _______
So you may say that it is almost half of the average daily wages of the employee. But those who are getting 280 and above they will get 145 only, this is the ceiling, but i hope now it must be increased after increasing the ceiling of gross salary from 7500/- to 10,000/-.
Hope now it must be very much clear with you.
Keep in touch and feel free to ask if have any query.
Regards,
Amit Seth.
From India, Ahmadabad
Thanks.. for such a wonderful compliments.
After gettin TIC one may get benefits at the ESI dispensaries but before that he has to collect a medical card from the ESI office only.
The PIC is been alloted within 1 month from getting the TIC but the employee can receive it only after completion of 3 months of services with the organisation.
The amount of benefit is calculated with respect to the contributions paid during the correspondening "contribution period" which are as below-
1. If contribution period is 1st April to 30th September then you may avail the benefits of those in the period of 1st January to 30th June of the following year and
2. If contribution period is 1st Oct to 31st Mar of the following year then one may avail benefits of those in the period of 1st July to 31st Dec.
The ESI department has some standard benefit rate,which is in turn linked to the average daily wages of the employee.
Standard Benefit Rate-
1.If Average daily wages is <28 then 14 or full average daily wage
2.If ____________ >= 28 but < 32 then _______ 16 or _______
So you may say that it is almost half of the average daily wages of the employee. But those who are getting 280 and above they will get 145 only, this is the ceiling, but i hope now it must be increased after increasing the ceiling of gross salary from 7500/- to 10,000/-.
Hope now it must be very much clear with you.
Keep in touch and feel free to ask if have any query.
Regards,
Amit Seth.
From India, Ahmadabad
Hi chaitali.. Welcome yours and all mine pleasures. BTW may you explain what you couldn’t get. Regards, Amit Seth.
From India, Ahmadabad
From India, Ahmadabad
Amit, Contribution period and Standard Benefit Rate....Calculation is confusing.. Rgds, Chaitali
From India, Vadodara
From India, Vadodara
Hi Amit
Would be grateful if you could explain how PF from the employer and employee are filed under what Form ? Using what forms and procedure is it done every month.Same with gratuity . Statutory compliances is something that every interviewer asks. Please shed some light on it .
Thanks
Jenna
You could also reply back to me at my email id
From India, Kochi
Would be grateful if you could explain how PF from the employer and employee are filed under what Form ? Using what forms and procedure is it done every month.Same with gratuity . Statutory compliances is something that every interviewer asks. Please shed some light on it .
Thanks
Jenna
You could also reply back to me at my email id
From India, Kochi
Dear Amit Seth
I have read all the reply, thanks you have explained everything very nice.
Just one query, if organization start with 39 employee, from a very first day of it's registration, in this case they need to apply for PF registration or not ?
Please confirm
With warm regards
Vikas Seth
From India, Ahmadabad
I have read all the reply, thanks you have explained everything very nice.
Just one query, if organization start with 39 employee, from a very first day of it's registration, in this case they need to apply for PF registration or not ?
Please confirm
With warm regards
Vikas Seth
From India, Ahmadabad
Dear Amit,
Thanks for all the knowledge you have shared with all. I am sure you can
clear my doubts on certain points.
Is the labour element in Repairs & Maintenance covered under ESI?
Does the act cover expenses labour element, if any, of accounts such as
office maintenance, office expenses, staff welfare expenses etc.?
How will a small company employing 20 people cope with keeping all the records.
Is it possible to quote the sections.
T S A Padmanabhan
From India, Delhi
Thanks for all the knowledge you have shared with all. I am sure you can
clear my doubts on certain points.
Is the labour element in Repairs & Maintenance covered under ESI?
Does the act cover expenses labour element, if any, of accounts such as
office maintenance, office expenses, staff welfare expenses etc.?
How will a small company employing 20 people cope with keeping all the records.
Is it possible to quote the sections.
T S A Padmanabhan
From India, Delhi
Hi Jenna,
Thanks for your comments..
After getting an Establishment code number,the Employer is required to give the list of all employees entitled to become members of the scheme on the date of its applicability, in form 9 within 15 days of such date. This return of membership is to be accompanied by nomination of each such employee in form 2.
The employer is required to submit a monthly return in Form 5 giving the names and other particulars of the new members. This form is to be submitted within 15 days of the close of every month along with nomination form of each member. If no new members join the fund in a month, then a "NIL" return should be sent.
Besides, the employer is required to submit a copy of the wage payment register of members of the fund who have left the service within 15 days of the close of every month.
A monthly return of contributions in the prescribed form within 25 days of close of every month, along with triplicate copies of challans for the amount of contributions & Administrative charges deposited.
If no contribution has been recovered then a "NIL" return should be furnished by the employer.
Lastly employer has to submit annual return of contribution in FORM 6-A.
Hope now it has been clear with you regarding the obligations of employer's.
Regards,
Amit Seth.
From India, Ahmadabad
Thanks for your comments..
After getting an Establishment code number,the Employer is required to give the list of all employees entitled to become members of the scheme on the date of its applicability, in form 9 within 15 days of such date. This return of membership is to be accompanied by nomination of each such employee in form 2.
The employer is required to submit a monthly return in Form 5 giving the names and other particulars of the new members. This form is to be submitted within 15 days of the close of every month along with nomination form of each member. If no new members join the fund in a month, then a "NIL" return should be sent.
Besides, the employer is required to submit a copy of the wage payment register of members of the fund who have left the service within 15 days of the close of every month.
A monthly return of contributions in the prescribed form within 25 days of close of every month, along with triplicate copies of challans for the amount of contributions & Administrative charges deposited.
If no contribution has been recovered then a "NIL" return should be furnished by the employer.
Lastly employer has to submit annual return of contribution in FORM 6-A.
Hope now it has been clear with you regarding the obligations of employer's.
Regards,
Amit Seth.
From India, Ahmadabad
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