PRESENTATION ON ESIC, PF & EPF

SUDHAKAR YADAV PANKAJ NIHARKAR AMIT PIRANKAR

PRASAD UGALE
GROUP

AMIT SHRINGARPU RE

AMIT PACHAKDAR

RAKESH LAKESHRE E

ROBIN ANGARKHE

SHARAD SANT

WHY THERE IS NEED OF ESIC & EPF ?

Unorganized employees. No Schemes for betterment of workers. Employers were not interested with employee related problems. Absence of Basic facility & post Retirement benefits. Employees are treated like a Machines or Slaves. No benefits to deceased employees families. Survival after Post retirement were become difficult. Cultivating need of saving for future.

Presenter AMIT PIRANKAR

THE EMPLOYEES STATE INSURANCE ACT, 1948

What are the Objectives & Benefits ? Objectives
To provide benefits to Employees in case of sickness, maternity and employment injury and to make provisions for related matters. Benefits

Medical Benefit.
Sickness Benefit. Maternity Benefit. Disablement Benefit. Dependant Benefit. Funeral Expenses.
Presenter AMIT PIRANKAR

TO WHOM ACT APPLIES & NOT APPLIES ?

ACTS APPLY TO

Applied to whole of India. All Factories & Establishment employing 20 or more person. Wage Limit Rs.10,000/- (w.e.f.01/10/2006.).

Act dose not apply to

Seasonal Factories. Mines. Railway running Shed. Govt. Factories or Establishment & Indian Navel, Military or Air Force. On Exemption by Govt. to some Factories or Establishment or Class of Person. Continue
Presenter PRASAD UGALE 5

EMPLOYER

Owner or Occupier of Factory HOD in case of Govt. Contractors

EMPLOYEES Person employed for Wages in Factory or Establishment. Employee drawing wages Up to Rs.10,000/ Apprentices. Causal Workers. EMPLOYEES TO WHOM ACT NOT APPLIES Person drawing salary more than Rs.10,000/ Member of Army, Navy or Air force. Persons Employed in Government Establishment. Construction workers.

Presenter PRASAD UGALE

WHAT ARE THE CONTRIBUTION & CONTRIBUTION PERIOD ?

Contribution Employee & Employee Contribution Rate (w.e.f.01st of Jan., 1997)

Employees Employers Total 1.75% 4.75% 6.50%

Exempted Employees (not for Employer)

Average Daily Wages Rs.70/-.

Payment
21 days of the last day of the Calendar month in which it falls due.

Contribution period
1st April to 30th Sept. 1st Oct. to 31st March

Corresponding Cash Benefit period

1st January of the following year to 30th June. 1st July to 31st December of the year following.
Presenter PRASAD UGALE 7

WHAT ARE THE FORM FOR EMPLOYERS & EMPLOYEES ?

Form No.1 (Registration of Establishment & Factories) Form No.3 (Return of Declaration form) Form No.5 (Return of Contribution) Form No.6 (Register of Employees) Form No.9 (Claim for Sickness / Maternity) Form No.11 (Accident Book) Form No.15 (Claim for Dependant Benefit) Form No.16. (In case of Death Report) Form No.19. (Claim for Maternity) Form No.22. (Funeral Expenses Claim)

Presenter SUDHAKAR YADAV

WHAT ARE THE FILING RULES & REGULATIONS ?

Register of Employees (Regulation 32) Return of Contribution

Contribution period ending 30th September is due by 11th November. Contribution period ending 30th September is due by 11th November.
Pay contribution and submit Return of Contributions

Serious delay or default on your part will burden you embarrass us and ultimately affect your employees

Presenter SUDHAKAR YADAV

WHAT ARE THE PENALTIES ?

Penalties are imposed.. prosecutions may be launched..

not because you offend us, but because you offend your own employees.
Penal Provisions when refuse to respond to show-cause Notices.

Inspection of your factory/establishment is a statutory requirement (Section 45 of ESI Act). But you can avoid it as and when you comply
If an inspection is round the corner, take it that you have done enough default and damage.

extend your sincere co-operation

Presenter AMIT SHRINGARPURE

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WHAT ARE ADDITIONAL BENEFITS & PAYMENT PROCEDURE ?

Temporary Identity Certificate. Permanent photo identity card. Employers has Employers Code Number. Employee has Insurance Number.

PAYMENT OF DEPOSIT OR CONTRIBUTION

Through any authorized branches of SBI either by Cash or Cheque.

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Presenter AMIT SHRINGARPURE

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WHAT IN CASE OF CLOSING FACTORY / ESTABLISHMENT ?

to pay contribution on the day of closure itself, and to submit RC within 7 days. This will help early inspection and deletion of your factory/establishment from records.

END OF ESIC

PART

Presenter AMIT SHRINGARPURE

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EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, 1952

What is a meaning & Benefits of Provident Fund?
The Act is instituted a compulsory contributory fund for the future of the employee after his retirement or for his dependents in case of his early death. PF is that fund which is deducted from the salary of an employee at definite rate.

Presenter ROBIN ANGARKHE

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What are the Objectives & Scope of this Act? Objectives

Make His

provision for future of worker after his retirement

dependant in case of his early death spirit of saving something regularly stabilization of a steady labor force in the industrial centre's.

With

Encourage

Scope
Extend Every

to whole of India except the State of Jammu and Kashmir.

Establishment / Factory specified in the schedule.

20

or more Employees.

Presenter ROBIN ANGARKHE

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TO WHOM THIS ACT APPLIES & NOT APPLIES ?

The Act apply to:

Every Factory employed 20 or more persons Establishment notified by Central Govt. Contract Labor. Educational Institute. Dept. & branches. Person working from home.

The Act does not apply to:

Casual Labor. Apprentice or Trainees. Directors, MD and partners. Charitable Institution ( for Benefit of Employees ). Newly set up establishment ( up to 3 years). Central or state Govt. having own Scheme. Age above 60 yrs.

Presenter RAKESH LAKESHREE

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WHAT ARE THE TYPES OF PROVIDENT FUND?

PROVIDENT FUND

Employees Provident Fund Scheme, 1952

Employees Pension Scheme,1995

Employees Deposit Linked Insurance Scheme, 1976

Presenter RAKESH LAKESHREE

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WHAT DOS FOR EMPLOYEES & EMPLOYERS ? DOS FOR EMPLOYEES

Applicable From the day he joins Salary more than Rs.6,500/- join the scheme.

DOS FOR EMPLOYERS

Enroll all categories of employees . Payment before the 15th of the following month.

Declare Previous Employers details in Form No.11 if any.

Submit Form No.2 (Nomination form) through Employers. Contribution to pay Rs.12% of Salary.

File Form 9, Form 3(P.S.), form 5A.

Monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues. Annual returns in Form 3A and 6A after reconciliation with Challans and form 12A. Attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.

Can Contribute more than prescribed rate.

Make available all relevant records for inspection of visiting officials with due authorization.
Presenter SHARAD SANT 17

TO WHOM EXEMPTIONS UNDER THE SCHEMES ?

Own Provident Fund and Pension Fund

Need to get an exemption from the Government under EPF Act Need to get an authorization under Income Tax Act for tax exemption.

Allowed to set up Exempted Funds when:

Contributions and Benefits under the Employers Scheme are not inferior to that of the Government Scheme Agree to follow all guidelines including Investment Pattern.

Employers can set up own trust

Full funding required Trustees are representatives of Employer and Employees Benefit Administration, Record-keeping and Funds Management done in-house.

2970 Exempted Funds with 4.5 million subscribers (18.8% of total subscribers)
Presenter SHARAD SANT

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WHAT ARE THE RIGHT OF EMPLOYERS & EMPLOYEES ? Right of Employers

Right to deduct the employees contribution. Reasonable opportunity of representing his case against an order passed. Right to appeal.

Right of Employees

Right to nominate the members. Entitled to the following Benefits withdrawing amount from PF:

Premium to Insurance Policies. Purchase or Construction of New house. Repair of Dwelling House. For Repayment of loans. No compensation at the time of lockout. Illness, Daughters Marriage, Education. At the time of Retirement.

Presenter PANKAJ NEHARKAR

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What is Contribution Pattern ?

Statutory Rate

rate of contribution is 12% of emoluments

of contribution shall be 10% in case of the following: Brick, beedi, jute, guar gum factories, coir industry other than spinning sector. declared as sick undertakings by BIFR.

Establishments Matching Out

contribution is to be collected from the employees

of 12% (or 10% as the case may be) of the employers share of contribution, 8.33% is to be remitted towards pension fund. is also required to pay a contribution of 0.5% of the emoluments towards EDLIS1976.
Presenter PANKAJ NEHARKAR

Employer

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24% CONTRIBUTION TO PF - BREAKUP

Nature of Contribution
Employees Contribution
Employers Contribution

Account
Provident Fund

Basis
12% of salary

Pension Fund Provident Fund

8.33% of Rs.6,500/Balance

Total Contribution
Employers Contribution . Misc Accounts (administration charges etc.)

24% of Salary
1.10% of Employees Salary.

Presenter PANKAJ NEHARKAR

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WHAT ARE THE DIFFERENT TYPES OF FORM UNDER EPF SCHEME ?

Under EPF Scheme 1952

EPF registration form for Employer Statement Showing Details of Employees Application for Transfer of EPF Account Application for Claiming EPF Dues Application for Calming EPF of Deceased Person Application for Non-refundable Advances (Registration Form) (Statement IW 1) (Form No.13) (Form No.19) (Form No.20) (Form No. 31)

Under EDLIS 1976

Form to be used by a Nominee / Legal Heir of Deceased or Guardian of the Minor. (Form No. 5(IF))

Under EPF Scheme 1995

Form for claiming withdrawal benefit / Scheme Certificate Application form for Monthly Pension (Form No.10C) (Form No.10D)
Presenter AMIT PACHADKAR 22

WHAT ARE OFFENCES, PENALTIES & DAMAGES ?

Offences

Making a false statement, Misrepresentation Default in payment of Admin Charges Default in payment of Employers Contribution. Contravention of the Condition.

Penalties

Fine Imprisonment

Damages:

Less than 2 months 2 to 4 months 4 to 6 months 6 months And above -

17% 37%

22% 27%

Presenter AMIT PACHADKAR

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