Hi, Can anybody plz do explain how pf and esi are handled by an HR and is it necessary for the registered company to be registered with PF schemes.
From India, Madras
2From India, Madras
hi,
well any organisation where 2 or more employees are
working covered under PF act....as per the rule both
employer n employee contribute to it total contribution is
24% in which 12% contributed by employer n 12% by employee.
ESI ACT
It is applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.The existing wage-limit for coverage under the Act, is Rs.7500/- per month (with effect from 1.4.2004). Now it is 10000/-
CONTRIBUTION
The employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period.
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
1st April to 30th Sept.
1st Oct. to 31st March
From India, Bangalore
well any organisation where 2 or more employees are
working covered under PF act....as per the rule both
employer n employee contribute to it total contribution is
24% in which 12% contributed by employer n 12% by employee.
ESI ACT
It is applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.The existing wage-limit for coverage under the Act, is Rs.7500/- per month (with effect from 1.4.2004). Now it is 10000/-
CONTRIBUTION
The employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period.
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
1st April to 30th Sept.
1st Oct. to 31st March
From India, Bangalore
Hi premlatha & Divya choubey,
Concept of Pf & Esi , leave policy we already discussed in the past.
if you people can go and search in the quick search menu.
Divya i am agree with your ESI Concept but not with the PF
PF
From Employee 12 % ( on basic salary)
From Employer 13.61%
8.33 Pension fund + 3.67 provident fund
1.1 % Account No 2 ( PF Salary i.c Basic Salary)
0.5 % Account No 21( PF Salary i.c Basic Salary)
0.01 % Account No 22 ( PF Salary i.c Basic Salary)
TOTAL WE HAVE TO REMIT TO PF OFFICE IS 25.61 % ON OR BEFORE 15TH OF NEXT MONTH.
Regards
Kugan Paramasivam
09840485689
divya choubey
From India
Concept of Pf & Esi , leave policy we already discussed in the past.
if you people can go and search in the quick search menu.
Divya i am agree with your ESI Concept but not with the PF
PF
From Employee 12 % ( on basic salary)
From Employer 13.61%
8.33 Pension fund + 3.67 provident fund
1.1 % Account No 2 ( PF Salary i.c Basic Salary)
0.5 % Account No 21( PF Salary i.c Basic Salary)
0.01 % Account No 22 ( PF Salary i.c Basic Salary)
TOTAL WE HAVE TO REMIT TO PF OFFICE IS 25.61 % ON OR BEFORE 15TH OF NEXT MONTH.
Regards
Kugan Paramasivam
09840485689
divya choubey
From India
Hi Kungan,
Thaks for your reply. But i am still not understand the following
From Employer 13.61%
8.33 Pension fund + 3.67 provident fund
1.1 % Account No 2 ( PF Salary i.c Basic Salary)
0.5 % Account No 21( PF Salary i.c Basic Salary)
0.01 % Account No 22 ( PF Salary i.c Basic Salary)
WHAT DOES IT MEAN?????
DIVYA...
From India, Bangalore
Thaks for your reply. But i am still not understand the following
From Employer 13.61%
8.33 Pension fund + 3.67 provident fund
1.1 % Account No 2 ( PF Salary i.c Basic Salary)
0.5 % Account No 21( PF Salary i.c Basic Salary)
0.01 % Account No 22 ( PF Salary i.c Basic Salary)
WHAT DOES IT MEAN?????
DIVYA...
From India, Bangalore
hi satya. wat abt .5% i know that goes to link schemes... wat abt other thing.... 1.1%wat all are that means acc 2 ,21,22 wat are that
From India, Bangalore
From India, Bangalore
I have a question:
Under the EPF Act, the company is supposed to contribute 8.33% of the wages towards Pension Scheme (out of total 12 % total employers' contribution). Now, this 8.33% is deducted upto the salary of Rs.6500/- only, even if the salary is more than 6500/-.
For an example:
Employer's salary is Rs.10000/- now on that 8.33% would be 833/- Rs. however, the maximum contribution towards the pension scheme would go Rs.542/- (8.33% of 6500/-) only.
Why it is so? Is there any provison for this in the act?
Pl. help me to satisfy this query.
Jayesh Naik
Ahmedabad
From India, Vadodara
Under the EPF Act, the company is supposed to contribute 8.33% of the wages towards Pension Scheme (out of total 12 % total employers' contribution). Now, this 8.33% is deducted upto the salary of Rs.6500/- only, even if the salary is more than 6500/-.
For an example:
Employer's salary is Rs.10000/- now on that 8.33% would be 833/- Rs. however, the maximum contribution towards the pension scheme would go Rs.542/- (8.33% of 6500/-) only.
Why it is so? Is there any provison for this in the act?
Pl. help me to satisfy this query.
Jayesh Naik
Ahmedabad
From India, Vadodara
Dear Mr. Naik
As per your query, The PF is payable on Basic+DA and the encashment of EL only not on the whole salary first.
Now if the Basic + DA of an employee is Rs. 10000.00 Then the deduction shall be as follows:-
1. Employee Share@12%= Rs.1200.00 (Deposite in A/c No.-1)
2.Employer Share@8.33% (Maxium uptoRs.6500.00)=Rs.541.00 (Deposit in A/c No.-10)
This is the maxium limit of amount which goes to the FPF(As the Basic is more than that of Rs.6500.00 in the case as mentioned above)
3. Employer Share@3.67%(Difference B/W12%-8.33%)=Rs.659.00(Deposit in A/c No.1)
4. Admn Charge payable by the employe on Total amount i.e.Rs.10000.00@1.1%=Rs.110.00 (Deposite in A/c No.-2)
5.EDLI charges payable by the Employer upto Rs.6500.00@.5%=Rs.33.0 (Deposite in A/c No-21.
6. Admn. Charges to EDLI@.01%=Rs.2.00 Minimum.
If you adopted a policy in lieu of EDLI from LIC or any where else and got the exemption form the competent authority, then in that case you have not to pay the EDLI charges to the PF Department. You have to pay the Admn. Charges to EDLI @.005%.
Thanks and Regards
Abhishek Sharma
From India, Delhi
As per your query, The PF is payable on Basic+DA and the encashment of EL only not on the whole salary first.
Now if the Basic + DA of an employee is Rs. 10000.00 Then the deduction shall be as follows:-
1. Employee Share@12%= Rs.1200.00 (Deposite in A/c No.-1)
2.Employer Share@8.33% (Maxium uptoRs.6500.00)=Rs.541.00 (Deposit in A/c No.-10)
This is the maxium limit of amount which goes to the FPF(As the Basic is more than that of Rs.6500.00 in the case as mentioned above)
3. Employer Share@3.67%(Difference B/W12%-8.33%)=Rs.659.00(Deposit in A/c No.1)
4. Admn Charge payable by the employe on Total amount i.e.Rs.10000.00@1.1%=Rs.110.00 (Deposite in A/c No.-2)
5.EDLI charges payable by the Employer upto Rs.6500.00@.5%=Rs.33.0 (Deposite in A/c No-21.
6. Admn. Charges to EDLI@.01%=Rs.2.00 Minimum.
If you adopted a policy in lieu of EDLI from LIC or any where else and got the exemption form the competent authority, then in that case you have not to pay the EDLI charges to the PF Department. You have to pay the Admn. Charges to EDLI @.005%.
Thanks and Regards
Abhishek Sharma
From India, Delhi
Dear Abhishek,
Thanks for your detailed explanation, but have not answered my query. What I am asking is where is the provision in the EPF Act that we have to deduct pension contribution @8.33% on 6500/- only and not on any salary in access of 6500/-, why the maximum amount in pension fund is Rs.641/-
Hope, now you got my question.
Regards,
Jayesh Naik
From India, Vadodara
Thanks for your detailed explanation, but have not answered my query. What I am asking is where is the provision in the EPF Act that we have to deduct pension contribution @8.33% on 6500/- only and not on any salary in access of 6500/-, why the maximum amount in pension fund is Rs.641/-
Hope, now you got my question.
Regards,
Jayesh Naik
From India, Vadodara
Dear Mr. Naik, Thanks for the discussion. You can check this in a Book" WHAT EVERYBODY SHOULD KNOW ABOUT LABOUR LAWS" written by H.L. Kumar. Thnanks and Regards Abhishek Sharma
From India, Delhi
From India, Delhi
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PF & ESI.zip
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