PF (Provident Fund)
PF registration is compulsorily for certain class of companies. Employee provident fund is a fund accumulated by salaried employees for the retirement benefits. In a simple word, it is a retirement plan for all salaried employee. Saving for retirement is the ultimate goal on the financial road that the salaried employee shoots at. And that’s where Employee Provident Fund comes into the picture.
In most of the cases, it’s forced saving that is resisted initially by most employees. But once you get used to that bite out, it works to your advantage.The Employee Provident Fund is maintained by the Employees’ Provident Fund Organisation of India.
1) Insurance Benefit
2) Pension Benefits
3) Withdrawal Benefit
4) Death Benefits
5) On Marriage, Education needs for self, child or any sibling
6) On purchase of your Dream House
7) On Medical Emergency
What is ESI (Employees’ State Insurance) Act
ESI is a self-financed comprehensive Social Security Scheme for social protection of the covered ’employees’ in the organized sector, against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
Applicability of ESI:
ESI is compulsory for entities employing 10 or more persons, Earlier it was 20 revised to 10. ESI contribution is required for all the employees earning wages less than Rs. 21,000/- per month.
Benefits of ESI Registration:
1) For all employees earning Rs.21000 or less per month as wages, the employer contributes 4.75% and the employee contributes 1.75%, Total share 6.5%. State Govt. share is 1/8th and central govt. share is 7/8th.
2) This fund is managed by the ESI Corporation according to rules and regulations stipulated there in the ESI act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organized sector. The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefits in certain contingencies and maternity benefits in case of women employees.
3) These medical benefits are available in 1418 ESI dispensaries and through 1678 private medical practitioners. Impatient care is available in 145 ESI hospitals and 42 hospital annexes with 19387 beds and disablement benefits and family pension for disablement and death respectively.