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 this ESI is to be given to employees, I mean percentages and stuff?
What about gratuity? It would be your kind concern if someone can take time to clear my above doubts in a bit explanatory manner.
Thanks and regards,
Kiran.
From Netherlands
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 this ESI is to be given to employees, I mean percentages and stuff?
What about gratuity? It would be your kind concern if someone can take time to clear my above doubts in a bit explanatory manner.
Thanks and regards,
Kiran.
From Netherlands
Hi Kiran,
Let me start answering your questions one at a time!!
Firstly, an orgniasation has to have a Provident Fund - this could either be through the PF main office at Bandra or they can internally put 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 acknowledgement for the same.
For the PF numbers - they will be in a chronological order after your mail PF number eg 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 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 are covered under this scheme. Under this scheme the employees are eligible for free / reduced medical help at any of the ESIC hospitals and ESIC recognised doctors. Here too there is a contribution from the employer as well as the employee. The employer's contribution is 4.75% and the employees contribution is 1.75% (the last that I know about unless it has changed).
Gratuity is applicable for an organisation 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 organisation for more than 5 years is eligible for gratuity.
Suggest for more details for PF and ESIC - read the law and engage a consultant and for Gratuity interact with LIC.
Hope this helps u!!
Regards,
Chanchal
From India, Mumbai
Let me start answering your questions one at a time!!
Firstly, an orgniasation has to have a Provident Fund - this could either be through the PF main office at Bandra or they can internally put 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 acknowledgement for the same.
For the PF numbers - they will be in a chronological order after your mail PF number eg 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 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 are covered under this scheme. Under this scheme the employees are eligible for free / reduced medical help at any of the ESIC hospitals and ESIC recognised doctors. Here too there is a contribution from the employer as well as the employee. The employer's contribution is 4.75% and the employees contribution is 1.75% (the last that I know about unless it has changed).
Gratuity is applicable for an organisation 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 organisation for more than 5 years is eligible for gratuity.
Suggest for more details for PF and ESIC - read the law and engage a consultant and for Gratuity interact with LIC.
Hope this helps u!!
Regards,
Chanchal
From India, Mumbai
hi!
thanks a lot for updating our knowledge abt the same..
am having a query.. for the same. earlier i was employed as an outsouced employee.. my pf was deducted.. n now from last 2 month i had applied to withdraw the pf amount.. but still i havent't got any response, neighter from nay PF authority nor from the firm's on whoes payrol i was..
from where culd i enquir abt the same..
hlp me out.
regards,
Amit
From India, Delhi
thanks a lot for updating our knowledge abt the same..
am having a query.. for the same. earlier i was employed as an outsouced employee.. my pf was deducted.. n now from last 2 month i had applied to withdraw the pf amount.. but still i havent't got any response, neighter from nay PF authority nor from the firm's on whoes payrol i was..
from where culd i enquir abt the same..
hlp me out.
regards,
Amit
From India, Delhi
Hi Amit,
Glad I could help!!
Well the PF rules for withdrawl of PF from an organisation are such :
1. The Employee has to fill up the withdrawl forms for his/her PF after 2 months from the date of leaving the organisation.
2. The forms are then signed by the authorised signatory of your organisation and are submitted to the PF office.
3. The PF withdrawl procedure then takes another 2-3 months before it reaches your bank account.
If u need to check the status of the same then please first check with your organisation 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 and give them your PF number as a reference and check the status of the same.
Hope this helps u!!
Regards,
Chanchal
From India, Mumbai
Glad I could help!!
Well the PF rules for withdrawl of PF from an organisation are such :
1. The Employee has to fill up the withdrawl forms for his/her PF after 2 months from the date of leaving the organisation.
2. The forms are then signed by the authorised signatory of your organisation and are submitted to the PF office.
3. The PF withdrawl procedure then takes another 2-3 months before it reaches your bank account.
If u need to check the status of the same then please first check with your organisation 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 and give them your PF number as a reference and check the status of the same.
Hope this helps u!!
Regards,
Chanchal
From India, Mumbai
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 with the amount that is accrued 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
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 with the amount that is accrued 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
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. 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 to a link for the PF office, I am afraid but I don't think there is a website for the same......
Chanchal
From India, Mumbai
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. 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 to a link for the PF office, I am afraid but I don't think there is a website for the same......
Chanchal
From India, Mumbai
Hi Abi,
Welcome!! Yes one can withdraw from the PF account without closing it but there is a catch to it.
1. An employee needs to be a member of the Provident Fund for a minimum of around 3-4 years.
2. He/she can withdraw / take a loan from the account for specific reasons like marriage, house loan, further studies etc
3. 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 advice you to consult a PF consultant and/or the local PF office.
Regards,
Chanchal
From India, Mumbai
Welcome!! Yes one can withdraw from the PF account without closing it but there is a catch to it.
1. An employee needs to be a member of the Provident Fund for a minimum of around 3-4 years.
2. He/she can withdraw / take a loan from the account for specific reasons like marriage, house loan, further studies etc
3. 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 advice you to consult a PF consultant and/or the local PF office.
Regards,
Chanchal
From India, Mumbai
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