EPF (Employees Provident Fund)
Thank you for reading this post, don't forget to subscribe!The Provident Fundis a social welfare scheme, established under the Employees Provident Fund and Miscellaneous Provision Act,1952.
The main function of the scheme is to provide saving benefits and retirement benefits after the retirement of employees.
Contribution Rate: The Contribution to Provident fund is based on basic salary. Both the Employee & the Employer contribute their shares and the total amount will be deposited by the employer. Employee contributions is deducted from his salary. The total contribution splits in 3 separate funds -EPF, EPS & EDLI. Where EPF is the Employees Provident Fund, EPS is the Employees’ Pension Scheme, EDLI is the Employee Deposit Linked insurance scheme.
Employee contribution is 12% of basic salary to EPF only
Employer contribution 12% of basic salary (3.67% to EPF & 8.33% to EPS). Apart from EPF & EPS, Employer also paid 0.5% of total wages to EPF Admin charges & another 0.5% of total wages to EDLI.
Due Dates:The payment date is 15th of the next month. The employer must deposit and file their return before due date or on 15th of each month.
ESIC(Employees State Insurance Corporation)
ESI is a social security scheme, and it is established under ESI Act, 1948. It provides all medical benefits for the employee and there family. ESI is eligible for those employees whose income are below Rs.21000/- per Month.
Contribution Rates: Employers Contribution is 3.75% on gross salary & Employees contribution is 0.75% on gross salary deducted from salary of the Employee. The employer paid the total contribution of 4.50% to ESIC on or before 15th of the next month.
