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Unorganized employees.

No Schemes for betterment of workers.

Employers were not interested with employee related

problems.

Absence of Basic facility & post Retirement benefits.

Employees are treated like a Machines or Slaves.

No benefits to deceased employees families.

Survival after Post retirement were become difficult.

Cultivating need of saving for future.

3PresenterAMIT PIRANKAR

What are the Objectives & Benefits ?

ObjectivesTo provide benefits to Employees in case of sickness, maternity and employment injury and to make provisions for related matters.

Benefits

Medical Benefit.

Sickness Benefit.

Maternity Benefit.

Disablement Benefit.

Dependant Benefit.

Funeral Expenses.

4PresenterAMIT PIRANKAR

ACTS APPLY TO

Applied to whole of India. All Factories & Establishment employing 20

or more person. Wage Limit Rs.10,000/- (w.e.f.01/10/2006.).

Act dose not apply to

Seasonal Factories. Mines. Railway running Shed. Govt. Factories or Establishment & Indian Navel,

Military or Air Force. On Exemption by Govt. to some Factories or Establishment

or Class of Person.

Continue………Presenter PRASAD UGALE 5

EMPLOYER Owner or Occupier of Factory HOD in case of Govt. Contractors

EMPLOYEES Person employed for Wages in Factory or Establishment. Employee drawing wages Up to Rs.10,000/- Apprentices. Causal Workers.

EMPLOYEES TO WHOM ACT NOT APPLIES Person drawing salary more than Rs.10,000/- Member of Army, Navy or Air force. Persons Employed in Government Establishment. Construction workers.

Presenter PRASAD UGALE 6

Contribution Employee & Employee Contribution Rate (w.e.f.01st of Jan.,

1997) Employees 1.75% Employers 4.75% Total 6.50%

Exempted Employees (not for Employer)

Average Daily Wages Rs.70/-.

Payment21 days of the last day of the Calendar month in which it falls due.

Contribution period       Corresponding Cash Benefit period

1st April to 30th Sept.         1st January of the following year to 30th June. 1st Oct. to 31st March        1st July to 31st December of the year following.

7Presenter PRASAD UGALE

Form No.1 (Registration of Establishment & Factories)

Form No.3 (Return of Declaration form) Form No.5 (Return of Contribution) Form No.6 (Register of Employees) Form No.9 (Claim for Sickness / Maternity) Form No.11 (Accident Book) Form No.15 (Claim for Dependant Benefit) Form No.16. (In case of Death Report) Form No.19. (Claim for Maternity) Form No.22. (Funeral Expenses Claim)

Presenter SUDHAKAR YADAV 8

Register of Employees (Regulation 32)

Return of Contribution Contribution period ending 30th September is due by 11th November.

Contribution period ending 30th September is due by 11th November.

× Pay contribution and submit Return of Contributions

Serious delay or default on your part will burden you embarrass us and ultimately affect your employees

9Presenter SUDHAKAR YADAV

Penalties are imposed.. prosecutions may be launched..

not because you offend us,but because you offend yourown employees.

Penal Provisions when refuse to respond to show-cause Notices.

Inspection of your factory/establishment is a statutory requirement (Section 45 of ESI Act). But you can avoid it as and when you comply

If an inspection is round the corner, take it that you have done enough default and damage.

extend your sincere co-operation

Presenter AMIT SHRINGARPURE 10

Temporary Identity Certificate.

Permanent photo identity card.

Employers has “Employer’s Code Number”.

Employee has “Insurance Number”.

PAYMENT OF DEPOSIT OR CONTRIBUTION Through any authorized branches of SBI either by Cash or Cheque.

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Presenter AMIT SHRINGARPURE

to pay contribution on the to pay contribution on the day of closure itself, day of closure itself, andand

to submit RC within 7 days.to submit RC within 7 days.

This will help early inspection and deletion ofThis will help early inspection and deletion of

your factory/establishment from records.your factory/establishment from records.

END OF …………… END OF …………… ESIC PARTESIC PART

12Presenter AMIT SHRINGARPURE

Presenter ROBIN ANGARKHE 13

EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, 1952

What is a meaning & Benefits of Provident Fund?

The Act is instituted a compulsory contributory fund for the future of the employee after his retirement or for his dependents in case of his early death. PF is that fund which is deducted from the salary of an employee at definite rate.

What are the Objectives & Scope of this Act?

ObjectivesMake provision for future of worker after his retirementMake provision for future of worker after his retirement

His dependant in case of his early death His dependant in case of his early death

With spirit of saving something regularly With spirit of saving something regularly

Encourage stabilization of a steady labor force in the industrial centre's. Encourage stabilization of a steady labor force in the industrial centre's.

ScopeScopeExtend to whole of India except the State of Jammu and Kashmir. Extend to whole of India except the State of Jammu and Kashmir.

Every Establishment / Factory specified in the schedule.Every Establishment / Factory specified in the schedule.

20 or more Employees.20 or more Employees.

Presenter ROBIN ANGARKHE 14

The Act apply to: Every Factory – employed 20 or more persons Establishment – notified by Central Govt. Contract Labor. Educational Institute. Dept. & branches. Person working from home.

The Act does not apply to: Casual Labor. Apprentice or Trainees. Directors, MD and partners. Charitable Institution ( for Benefit of Employees ). Newly set up establishment ( up to 3 years). Central or state Govt. having own Scheme. Age above 60 yrs.

 Presenter RAKESH LAKESHREE 15

Presenter RAKESH LAKESHREE 16

Presenter SHARAD SANT 17

DO’S FOR EMPLOYEES DO’S FOR EMPLOYERSApplicable From the day he joins Enroll all categories of employees .

Salary more than Rs.6,500/- join the scheme.

Payment before the 15th of the following month.

Declare Previous Employers details in Form No.11 if any.

File Form 9, Form 3(P.S.), form 5A.

Submit Form No.2 (Nomination form) through Employers.

Monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.

Contribution to pay Rs.12% of Salary.Annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.

Can Contribute more than prescribed rate.

Attest the form  No.2 and  the claims forms submitted by the member/ legal heirs/ nominees.

Make available all relevant records for inspection of visiting officials with due authorization.

Own Provident Fund and Pension Fund

Need to get an exemption from the Government under EPF Act

Need to get an authorization under Income Tax Act for tax exemption.

Allowed to set up Exempted Funds when: Contributions and Benefits under the Employer’s Scheme are not

inferior to that of the Government Scheme

Agree to follow all guidelines including Investment Pattern.

Employers can set up own trust Full funding required

Trustees are representatives of Employer and Employees

Benefit Administration, Record-keeping and Funds Management done

in-house.

2970 Exempted Funds with 4.5 million subscribers (18.8% of total subscribers)

18 Presenter SHARAD SANT

Right of Employers Right to deduct the employees contribution. Reasonable opportunity of representing his case against an order passed. Right to appeal.

Right of Employees Right to nominate the members.

Entitled to the following Benefits withdrawing amount from

PF: Premium to Insurance Policies. Purchase or Construction of New house. Repair of Dwelling House. For Repayment of loans. No compensation at the time of lockout. Illness, Daughter’s Marriage, Education. At the time of Retirement.

Presenter PANKAJ NEHARKAR 19

What is Contribution Pattern ?

Statutory rate of contribution is 12% of emoluments

Rate of contribution shall be 10% in case of the following: Brick, beedi, jute, guar gum factories, coir industry other than spinning  sector.

Establishments declared as sick undertakings by BIFR.

Matching contribution is to be collected from the employees

Out of 12% (or 10% as the case may be) of the employer’s share of contribution, 8.33% is to be remitted towards

pension fund.

Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.

20 Presenter PANKAJ NEHARKAR

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24% CONTRIBUTION TO PF - BREAKUP

Nature of Contribution

Account Basis

Employee’s Contribution

Provident Fund 12% of salary

Employer’s Contribution

Pension Fund 8.33% of Rs.6,500/-

Provident Fund Balance

Total Contribution 24% of Salary

Employer’s Contribution

Misc Accounts(administration charges etc.)

1.10% of Employees Salary.

Presenter PANKAJ NEHARKAR

Under EPF Scheme 1952EPF registration form for Employer (Registration Form)

Statement Showing Details of Employees (Statement IW – 1)

Application for Transfer of EPF Account (Form No.13)

Application for Claiming EPF Dues (Form No.19)

Application for Calming EPF of Deceased Person (Form No.20)

Application for Non-refundable Advances (Form No. 31)

Under EDLIS 1976Form to be used by a Nominee / Legal Heir of Deceased (Form No. 5(IF))or Guardian of the Minor.

Under EPF Scheme 1995Form for claiming withdrawal benefit / Scheme Certificate (Form No.10C)

Application form for Monthly Pension (Form No.10D)

22 Presenter AMIT PACHADKAR

Offences Making a false statement, Misrepresentation Default in payment of Admin Charges Default in payment of Employer’s Contribution. Contravention of the Condition.

Penalties Fine Imprisonment

Damages: Less than 2 months - 17% 2 to 4 months - 22% 4 to 6 months - 27% 6 months And above - 37%

23 Presenter AMIT PACHADKAR

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