Professional Documents
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Meaning-:
Statutory means "of or related to statutes," or what we normally call laws or regulations. Compliance just means to comply with or adhere to. So statutory compliance means you are following the laws on a given issue. The term is most often used with organizations, who must follow lots of regulations. When they forget or refuse to follow some of those regulations, they are out of statutory compliance. A company that follows all the rules, is in statutory compliance.
Purpose-:
Safeguarding the employees and the enterprise from untoward risks by managing and consulting on issues such as retirement benefits and Taxation
ESI
Contd..
There are two contribution periods each of six months duration as on 1st April to 30th Sept and 1st Oct. to 31st March and two corresponding benefit periods also of six months duration as on.1st January to 30th June and 1st July to 31st December .
Contribution for the purpose of Employees' pension Scheme 8.33% of (12% of employers contribution towards Provident Fund) or Rs.540/- which ever is less, will be transferred to Employees pension scheme and the balance amount will go towards Employee Provident Fund
Provident Fund
Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death. It extends to the whole of India except the State of Jammu and Kashmir. Every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employee.
Every other establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify and any other establishment so notified by the Central Government even if employing less than 20 persons.
PF is contributed from both the sides employee as well as employer @12% of the basic salary to the employees fund.
Professional Tax
Professional tax or employment tax is a state-based tax. It is allowed as a deduction from the gross income before computing the tax. Duration for deduction is half-year, shall be from the 1st day of April to the 30th day of September and from the 1st day of October to the 31st day of March of a year. PT is deducted slab wise , salary 1 to 3000-nil . 3000 to 3500 Rs 60, Rs.3501 to 5000 - Rs 120 , Rs 5001 to 10000- Rs 175 and above 10000 Rs 200 per month except Rs 300 in the month of february. Employee means a person employed on salary and is a Government servant receiving pay from the revenue of the Central Government or any State Government is entitled to pay profession tax Any organization whether incorporated or not, which is owned or controlled by the Central Government or any State Government is eligible to pay PT
Gratuity
Gratuity is an amount given to employees by employer when they leave the job after completing five years or minimum 240 days per year or after retirement. The number of year may differ from company to company Gratuity is payable under the payment of wages act. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease Gratuity is calculated as Basic + DA divided by 26 * No of years of service *15. It is calculated as last drawn salary divided by 26 multiply by 15 and then multiply by the no of years of services (min 5 yrs or minimum 240 days per year).
Conclusion
The present day legal climate is one of uncertainty and confusion. In most cases, a law comes to light only after its contravention, resulting in severe penalties. Statutory Compliances is a must in keeping you away from the long arm of the law!