Hi, Can some one explain clearly abt PF and ESI? Its importance and how its calculated?
From Oman
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1From Oman
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Hi,
The formalities for ESI are that you must have a minimum of 20 employees, regardless of whether they are receiving a salary of more than 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Those earning 10001/- or more will be exempted from ESI.
Yes, ESI and ESIC are the same. ESIC stands for Employee State Insurance Corporation.
The employer should register the factory or establishment with the ESI Corporation within 15 days of the applicability of the ESI Act. The registration declaration must 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 the name, designation, and address of the manager controlling such persons, in respect of offices located outside. Once the application is approved, the ESI regional office will assign a code number to the employer.
Only after this can you register your employees with the ESI. They must fill out a declaration form (FORM 1), clearly stating Male or Female. All declaration forms should be countersigned by the employer.
Next, prepare a return of declaration in Form 3 separately for Male & Female within 10 days of filling out the declaration form.
Every employee will then be assigned a temporary identification number.
For PF formalities, the company must be at least 3 years old to register with the PF department. Similarly, for this Act, the minimum number of employees required is 20.
Every employer of an establishment covered by the Employee Provident Fund Act must submit Form 5A (in duplicate) to the commissioner, providing details of all branches and departments, owners, directors, partners, or any other person controlling its affairs within 15 days of the scheme's applicability.
Upon receipt of Form 5A, the commissioner will verify the information provided and, once satisfied, allocate an Establishment Code No.
PF contribution is 12% of basic from both the employee and employer sides. Out of this, 24%, 8.33% goes to the pension fund, while the rest goes to the provident fund.
The ceiling for this contribution is 6500/- basic per month.
In contrast, ESI contributions are based on the gross/month salary. Employees contribute 1.75%, while employers contribute 4.75%.
I hope the information is now clearer to you.
Feel free to revert if there are any issues in understanding it.
From India, Ahmadabad
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The formalities for ESI are that you must have a minimum of 20 employees, regardless of whether they are receiving a salary of more than 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Those earning 10001/- or more will be exempted from ESI.
Yes, ESI and ESIC are the same. ESIC stands for Employee State Insurance Corporation.
The employer should register the factory or establishment with the ESI Corporation within 15 days of the applicability of the ESI Act. The registration declaration must 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 the name, designation, and address of the manager controlling such persons, in respect of offices located outside. Once the application is approved, the ESI regional office will assign a code number to the employer.
Only after this can you register your employees with the ESI. They must fill out a declaration form (FORM 1), clearly stating Male or Female. All declaration forms should be countersigned by the employer.
Next, prepare a return of declaration in Form 3 separately for Male & Female within 10 days of filling out the declaration form.
Every employee will then be assigned a temporary identification number.
For PF formalities, the company must be at least 3 years old to register with the PF department. Similarly, for this Act, the minimum number of employees required is 20.
Every employer of an establishment covered by the Employee Provident Fund Act must submit Form 5A (in duplicate) to the commissioner, providing details of all branches and departments, owners, directors, partners, or any other person controlling its affairs within 15 days of the scheme's applicability.
Upon receipt of Form 5A, the commissioner will verify the information provided and, once satisfied, allocate an Establishment Code No.
PF contribution is 12% of basic from both the employee and employer sides. Out of this, 24%, 8.33% goes to the pension fund, while the rest goes to the provident fund.
The ceiling for this contribution is 6500/- basic per month.
In contrast, ESI contributions are based on the gross/month salary. Employees contribute 1.75%, while employers contribute 4.75%.
I hope the information is now clearer to you.
Feel free to revert if there are any issues in understanding it.
From India, Ahmadabad
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P.F.
Every Month Returns:
Form 12 A - Monthly Contribution Report
Form 5 - Employees Additional Report (If you include new employees this month, you must provide details in this return. Otherwise, submit a "Nil" Return)
Form 10 - Monthly Deletion Report (If you need to delete an employee's name this month, specify the names and details in this report. Otherwise, submit a "Nil" Return)
Combined Challan P.F. Office Copy.
Annual Returns:
Form 6A - Annual Contribution Report
Form 3A - Employees Individual Contribution Card
Contribution Employee
P.F. A/C - 12%
Employer Contribution:
P.F. A/C - 3.67%
Pension A/C - 8.33%
E.D.L.I. - 0.5%
P.F. Admin Charges - 1.10%
E.D.L.I. Admin Charges - 0.01%
All contributions should be calculated based on Basic & D.A. only.
Thanks. It may help you.
Suthanthira Selvan
From India, Madras
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Every Month Returns:
Form 12 A - Monthly Contribution Report
Form 5 - Employees Additional Report (If you include new employees this month, you must provide details in this return. Otherwise, submit a "Nil" Return)
Form 10 - Monthly Deletion Report (If you need to delete an employee's name this month, specify the names and details in this report. Otherwise, submit a "Nil" Return)
Combined Challan P.F. Office Copy.
Annual Returns:
Form 6A - Annual Contribution Report
Form 3A - Employees Individual Contribution Card
Contribution Employee
P.F. A/C - 12%
Employer Contribution:
P.F. A/C - 3.67%
Pension A/C - 8.33%
E.D.L.I. - 0.5%
P.F. Admin Charges - 1.10%
E.D.L.I. Admin Charges - 0.01%
All contributions should be calculated based on Basic & D.A. only.
Thanks. It may help you.
Suthanthira Selvan
From India, Madras
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