ESI, PF, LWF & Gratuity

Benefits and usages of ESI, PF, LWF and Gratuity

1. ESI, PF & LWF Benefits and Application Process Presented By: Anita Verma (HR Manager)

2. ESIC Full Form- Employee State Insurance Corporation Established In 1948 for factory Workers, Later on applicable to all establishments in which number of employees are more than 10. Applicable to all employees, whose gross salary is less than 21000/- per month. ESIC contribution rates: Employer Share-3.25% Employee Share-0.75% Total Contribution-4.00%

3. Benefits to Employees

4. Sickness Benefits

5. Maternity Benefits

6. Disablement Benefits

7. PF- Provident Fund

8. Applicability of the Act To every establishment employing 20 or more employees. Any establishment to which the act applies shall continue to be governed by the act even if the number of persons employed therein at any time falls below. Contributions: Employee Contribution- 12% on Basic + DA Employer Contribution-3.67% on Basic+DA and 8.33% in EPS Admin Charges-1.10% on Basic+ DA

9. Forms to be used under EPF Scheme Form 2: PF & EPS declaration for every new entrants. Form 19 & 10 C: Withdrawal form for Left Employees Form 13: For transfer of PF/EPS Form 31: For application of Advance from Fund. From 10 D: Application for Pension (Death Case) Form 5(If): Insurance refund (Death Case) Form 20: Provident Fund Withdrawn in death case Form 15 Online withdrawal of Claims can be proceeded now a days.

10. Process of PF Withdrawal- Login to EPFO Member Portal

11. Step 2 – Then on the homepage of Unified Portal, select the option “Online Services” tab. Here, you can withdraw EPF and EPS online and also can check the claim status online.

12. Enter Bank Details Here and verify the same by agreeing the terms and conditions.

13. Enter the Purpose of Withdrawal as outbreak of Pandemic(Covid-19), Enter Address details as per Adhar , Enter Required Amount and Upload scanned Copy of Cheque Which is of Maximum 500 kb size. Your name and Bank details must be clear in the picture.

14. Track Claim Status In order to check the claim status, login with your details and click on track claim status. Select your Current PF Account and Check Status

15. Labour Welfare Fund The scope of this Act is extended to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral etc. State specific Labour Welfare Funds are funded by contributions from the employer, employee and in few states, the government also. Some of the major benefits of labour welfare are : (1) Improved Industrial Relations ( 2) Increase in the General Efficiency and Income (3) High Morale ( 4) Creation of Permanent Labour Force (5) Improvement in the Mental and Moral Health ( 6) Change in the Outlook of Employers and ( 7) Social Benefits.

16. Bonus Act 1965 The Payment of  Bonus Act , 1965 provides for a minimum  bonus  of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the  bonus  payable to employees drawing wages or salary not exceeded to Rs . 25000/ -per Month. Eligibility: Employee shall be  eligible  for  bonus  for minimum of 8.33% of the salary/wages even if there is loss in the establishment whereas a maximum of 20% of the employee's salary/wages is payable as  bonus  in an accounting year depending upon the employer. He must attend the office minimum for a period of 30 days in a year. Frequency: Bonus can either be paid in monthly salary or annually that depends on employer.

17. Gratuity Act-1972 An act to provide for a scheme for the payment of Gratuity to employees engaged in factories, Mines, oilfields, Plantations, Ports, Railway Companies, Shops or other establishments. Eligibility for Gratuity: Gratuity shall be payable to an employee on termination of his employment after he/she has rendered continuous service for not less than 5 years – On his Superannuation or On his retirement or resignation Or his death or disablement(Five years services not required) due to accident or disease.

18. In Case of Death of Employee In case of death of Employee, gratuity payable to him shall be paid to his nominee or If no nomination has been made, to his heirs, whereas if heirs is a minor the share of such minor shall be deposited with the controlling authority ( i.e. government officer) who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains the majority.

19. Gratuity to disabled Employees Computing the gratuity payable to an employee who is re-employed, after his disablement, on reduced wages, His wages for the period preceding his disablement , shall be taken to be the wages received by him during that period , and His wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.

20. Calculation of Gratuity For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen (15) days’ basic wages based on the rate of wages last drawn by the employee concerned. For Example: Ram has rendered his services for continuously 10 years to a company and his basic wages are 10000/- per month. Now the gratuity amount will be calculated as: Gratuity= No. Of Years of Service x Basic Wages x 15/26 Gratuity Amount = 10 x 10000 x 15/26 = 57692/- Note: The amount of gratuity payable to an employee shall not exceed Rs.3,50,000/-

21. Forfeiture of Gratuity Employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer , shall be forfeited to the extent of the damage or loss so caused; the gratuity payable to an employee may be wholly or partially forfeited if the services of such employee have been terminated for his disorderly conduct or any other act of violence on his part, or any act which constitutes an offence , provided that such offence is committed by him in the course of his employment.

22. Any Query? Feel Free to Ask 