ESIC & PF Compliance

Overview:
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, is aimed at ensuring financial stability for workers post-retirement. Administered by the Employees’ Provident Fund Organization (EPFO), the Act mandates a contributory provident fund scheme, a pension scheme, and an insurance scheme for employees in the organized sector.

Key Features:

Coverage: Applicable to establishments employing 20 or more persons.
Covers employees earning up to ₹15,000 per month at the time of joining the employment.
Contributions: Both employer and employee contribute 12% of the employee’s basic salary and dearness allowance towards the Provident Fund.
Out of the employer’s contribution, 8.33% is diverted to the Employees’ Pension Scheme (EPS), while the remaining 3.67% goes to the EPF.
Schemes under EPF: Employees’ Provident Fund (EPF): A retirement savings scheme where both employer and employee contribute.
Employees’ Pension Scheme (EPS): Provides pension on retirement, disability pension, and family pension.
Employees’ Deposit Linked Insurance Scheme (EDLI): Provides a lump-sum payment to the insured’s family in case of the employee’s death during the service period.

Benefits: Provident Fund Accumulation: Provides a lump sum payment at the time of retirement or separation from employment.
Pension: Ensures a regular monthly income post-retirement.
Insurance: Provides financial security to the employee’s family in case of untimely death.
Importance: Encourages savings among employees, ensuring financial security post-retirement.
Provides social security to employees and their families, contributing to their overall well-being.