PF AND ESIC

Objective :
Employees covered enjoy a benefit of social security
Eligibility:
Every employee becomes eligible for joining the scheme from the date of joining the service
Benefits :
Employees provident fund scheme takes care of following needs of the members;
(1) Retirement
(2) Medical care
(3) Housing
(4) Family obligation
(5) Financing of insurance polices

•Contribution Rate
Both the employees and employer contribute to the fund at the rate of 12% of the basic wages,
dearness allowance and retaining allowance allowance,if any payable to employees per month
•Contribution Period:
Contribution for the current month is deposited in the subsequent month
•Annual Contribution for the Period
Is from 1st
of march to 28/29 Feb
• Annual Statement of account:
As soon as possible and after the close of each period of currency of contribution, annual
statements of accounts will be sent to each member through of the factory or other
establishment where the member was last employed.
The statement of accounts in the fund will show the opening balance at the beginning of the
period, amount contribution during the year, the total amount of interest credited at the end of
the period or any withdrawal during the period and the closing balance at the end of the period.
Member should satisfy themselves as to the correctness of the annual statement of accounts and
any error should be brought through employer to the notice of the correctness Provident Fund
Office within 6 months of the receipt of the statement.

Nomination:
The member of Provident Fund shall make a declaration in Form 2, a nomination conferring
the right to receive the amount that may stand to the credit in the fund in the event of death.
The member may furnish the particulars concerning himself and his family.
These particulars furnished by the member of Provident Fund in Form 2 will help the
Organization in the building up the data bank for use in event of death of the member.
Transfer of Provident Fund account:
Transfer of Provident Fund account from one region to other, from Exempted Provident
Fund Trust to Unexempted Fund in a region and vice-versa can be done as per Scheme.
Transfer Application in form 13 may be submitted to the concerned Provident Fund Office.
Withdrawal before retirement:
A member can withdraw up to 90% of the amount of provident fund at credit after attaining
the age of 54 years or within one year before actual retirement on superannuating whichever
is later. Claim application in form 19 may be submitted to the concerned Provident Fund
Office.

FAQs
Is employee the only beneficiary of Fund?
Benefit will be paid to him/her and in his/her absence to his/her family
What is meant by Family?
Family means employees' spouse and children below 25 years of age.
Suppose an employee does not have a Family and he/she dies before receiving benefit.
Does his/her pension get lost?
No, if he/she does not have a family, benefits will be paid to his/her nominee, who will receive
the benefit in his/her absence.
Suppose member has not nominated anyone?
The pension will be paid to the dependent parents.

FAQs
Can member change his/her nomination?
He/She can change his/her nomination whenever he/she decides within the framework
of rules for such nomination. In other words if he/she has a family, nomination should
be in favor of a member(s) of the family. If he/she has no family he/she can nominate
anyone he/she wishes.
How many years service is required to be eligible to receive member pension?
Minimum 10 years eligible service will entitle for member pension.
What is the time taken for disposal of the application in the Provident Fund office?
The claims received complete in all respects are disposed off within a maximum period
of 30 days from the date of receipt of claims in the office..
What is the voluntary rate of Provident Fund contribution by the member?
As per the Act, the member has to contribute at the rate of 12% of his basic pay, D.A.
& retaining allowance if any. In case the member wants to contribute more than this,
voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the
employer is not bound to contribute at the enhanced rate.

Various Forms :
•Form 2- For Nomination
•Form 13-For transferring the Provident Fund account of a member from one establishment
to another establishment covered under the act / scheme
•Form 19-To be submitted by a member to withdraw his Provident Fund dues on leaving
service/retirement/termination
•Form 20-In the event of death of member, this form is to be used by a nominee / family
member to claim the member's Provident Fund accumulation
•Form 10D-To be submitted by the first claimant i.e. member or widow/widower or
orphan or nominee as the case may be
•Form 10C- For claiming : Refund of Employer share / Withdrawal benefit /Scheme
certificate for retention of membership
•Form 31- For the use of Provident Fund members to avail advances / withdrawals as
provided in the scheme.

Types of
Benefit
Eligibility Eligible Amount Form Documentary Support
Advance
from the
fund for
repayment
of loan
10 years membership
of the fund & member
should have taken loan
from Govt. Body
36 month wages (Basic +
DA)
OR
Members own share of
Contribution +
Company’s share of
Contribution with interest
thereon.
No.31 A certificate from the
lending authority
furnishing the details of
loan and outstanding
amount.
68 BB : REPAYMENT OF LOAN

Types of Benefit
Eligibili
ty
Eligibl
e
Amou
nt
F
o
r
m
Documentary
Support
Advance from the fund for illness viz.
hospitalisation for more than a month, major
surgical operation or suffering from TB,
Leprosy, Paralysis, Cancer, Heart ailment
etc.
Stay in
Hospital
at least
for a
month
6
moths
wages
(Basic
+ DA)
N
o
.
3
1
A certificate from
the Medical
Practitioner for
hospitalisation or
operation.
68 J : ADVANCE FROM FUND FOR ILLNESS

Types of Benefit Eligibility
Eligible
Amount
For
m
Documenta
ry Support
l Advance from
the fund for
Marriage of
self/son/daughter/
sister/brother etc.
l Advance from
the fund for
education of
Son/Daughter
l 7 years membership of
the fund & minimum
balance in member’s
account should be Rs.
1000/-
l 50% of
member’s
own share
of
contributio
n
No.
31
Declaration
by the
member
which is
attested by
the
employer.
68 K : ADVANCE FROM THE FUND FOR MARRIAGE

Types of
Benefit
Eligibility Eligible Amount
For
m
Docu
menta
ry
Suppo
rt
Grant of
advance in
abnormal
conditions,
Natural
calamities etc.
l Certificate
of damage
from
appropriate
authority.
l State Govt.
declaration.
l Rs. 5000/- or 50%
of member’s own
share of contribution
(To apply within 4
months)
No.
31
l
Certifi
cate
from
the
Appro
priate
Author
ity.
68L : ADVANCE IN ABNORMAL CONDITIONS

Eligibl
e
Amou
nt
Fo
r
m
Documentary
Support
Grant of advance
to members
affected by cut in
the supply of
electricity
l The advance may be granted only to a
member whose total wages for any one
month commencing from the month of
January 1973 were 3/4th
or less than 3/4th
of
wages for a month
l
Wages
for a
month
OR
l
Rs.300
/-
N
o.
31
Certificate
from State
Govt.
regarding cut
in the supply
of electricity.
68 M : ADVANCE TO MEMBER AFFECTED BY CUT
IN THE SUPPLY OF ELECTRICITY

Eligible
Amount
Form
Document
ary
Support
To Physically
Handicapped member for
purchase of an equipment
required to minimize the
hardship on account of
handicap.
Production of medical
certificate from a
competent medical
practitioner to the effect
that he is physically
handicapped
Basic wages+
DA for six
months
or own share of
contribution
with interest or
cost of
equipment
which ever is
least.
No.31 Certificate
from the
Medical
practitione
r to the
effect that
the
member is
physically
handicapp
ed..
68 N : GRANT OF ADVANCE TO MEMBERS WHO ARE
PHYSICALLY HANDICAPPED

Contribution , Collection & Period
Contribution
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the
Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in
respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified
rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is
1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in
every wage period. Employees in receipt of a daily average wage upto Rs.40/- are exempted from payment of
contribution. Employers will however contribute their own share in respect of these employees.
Wage ceiling for coverage increased to Rs. 15000/- w.e.f. 1st May,10
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution
from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days
of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized
designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of
six months duration as under.
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

Benefits under the ESI Scheme
The section 46 of the Act envisages following six social security benefits :-
a.Medical Benefit
b.Sickness Benefit
Extended sickness Benefit(ESB)
Enhanced Sickness Benefit
c.Maternity Benefit(MB)
d.Disablement Benefit
•Temporary disablement benefit(TDB)
•Permanent disablement benefit(PDB)
e.Dependant's Benefit(DB)
f.Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying
capacity as a fixed percentage of the workers wages, whereas, they are provided social
security benefits according to individual needs without distinction. Cash Benefits are
disbursed by the Corporation through its Local Offices LOs/ Mini Local Offices
(MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.
In addition, the scheme also provides some other need based benefits to insured
workers.
These includes : Rehabilitation allowance & Vocational Rehabilitation

TYPE OF MEDICAL BENEFITS PROVIDED
The Employees’ State Insurance Scheme provides full medical care in the form of medical attendance,
treatment, drugs and injections, specialist consultation and hospitalization to insured persons and also to
members of their families where the facility for Specialist consultation, hospitalization has been extended to
the families. For the families, this benefit has been divided into two categories as under:-
FULL MEDICAL CARE
This consists of hospitalization facilities and includes specialist services, drugs and dressings and diets as
required for in-patients.
EXPANDED MEDICAL CARE
This consists of consultation with the specialists and supply of special medicines and drugs as may be
prescribed by them in addition to the out-patient care. This also includes facilities for special laboratory tests
and X-Ray examinations.
Apart from the curative services provided through hospitals and dispensaries, the Corporation also provides the
following facilities including family welfare services.
IMMUNIZATION
The Corporation has embarked upon a massive programme of immunization of young children of insured
persons. Under this programme, preventive inoculation and vaccines are given against diseases like diphtheria,
pertusis, polio, tetanus, measles, mumps, rubella, tuberculosis etc.

FAMILY WELFARE SERVICES
Along with the immunization programme, the Corporation has been undertaking provision of family Welfare
Services to the beneficiaries of the Scheme. The Corporation has organized these services in 180 centres
besides reserving 330 beds in hospitals for undertaking tubectomy operations. So far, 828976 sterilization
operation viz. 176197 vasectomies and 652779 tubectomies have been performed upto 31.3.1999. The ESI
Corporation has also extended additional cash incentive to insured persons to promote acceptance of
sterilization method by providing sickness cash benefit equal to full wage for a period of 7 days for vasectomy
and 14 days for tubectomy. The period for which cash benefit is admissible is extended beyond the above
limits in the event of any complications after Family Planning operations.
SUPPLY OF SPECIAL AIDS
Insured persons and members of their families are provided artificial limbs, hearing aids, and artificial
appliances like spinal supports, cervical collars, walking calipers, crutches, wheel chairs and cardiac pace
makers as a part of medical care under the Scheme.

Sickness Benefit
Sickness Benefit represents periodical cash payments made to an IP during the period of certified sickness
occurring in a benefit period when IP requires medical treatment and attendance with abstention from work on
medical grounds. Prescribed certificates are; Forms 8,9,10,11 & ESIC-Med.13. Sickness benefit is roughly
50% of the average daily wages and is payable for 91 days during 2 consecutive benefit periods. Qualifying
Conditions
(i)To become eligible to Sickness Benefit, an IP should have paid contribution for not less than 78 days during
the corresponding contribution period.
(ii)A person who has entered into insurable employment for the first time has to wait for nearly 9 months
before becoming eligible to sickness benefit, because his corresponding benefit period starts only after that
interval.
(iii)Sickness Benefit is not payable for the first two days of a spell of sickness except in case of a spell
commencing within 15 days of closure of earlier spell for which sickness benefit was last paid. This period of
2 days is called "waiting period". This provision should be clearly understood by IMOs/IMPs as actual
experience shows that such of IPs who want to avail medical leave on flimsy grounds generally come for First
Certificate/First & Final Certificate within 15 days of earlier spell, usually on unpaid holidays and/or on each
weekly off etc, to avoid loss of benefit for 2 days due to fresh waiting period.

Extended Sickness Benefit (ESB)
IPs suffering from long term diseases were experiencing great hardship on expiry of 91 days Sickness benefit.
Often they, though not fit for duty, pressed for a Final certificate. Hence, a provision for paying Sickness
Benefit for an extended period (Extended Sickness Benefit)of upto 2 years in a ESB period of 3 years.
1. An IP suffering from certain long term diseases is entitled to ESB, only after exhausting Sickness Benefit
to which he may be eligible. A common list of these long term diseases for which ESB is payable, is
reviewed by the Corporation from time to time. The list was last reviewed on 5.12.99 and revised
provisions of ESB became effective from 1.1.2000 and at present this list includes 34 diseases which are
grouped in 11 groups as per International Classification of diseases and theo names of many existing
diseases have been changed as under :-

I Infectious Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Empyema
4. AIDS II Neoplasms
5. Malignant Diseases
6. III Endocrine, Nutritional and Metabolic Disorders
7. Diabetes Mellitus-with proliferative retinopathy/diabetic foot/nephropathy. IV Disorders of Nervous System
8. Monoplegia
9. Hemiplegia
10. Paraplegia
11. Hemiparesis
12. Intracranial Space Occupying Lesion
13. Spinal Cord Compression
14. Parkinson’s disease
15. Myasthenia Gravis/Neuromuscular Dystrophies V Disease of Eye
16. Immature Cataract with vision 6/60 or less
17. Detachment of Retina
18. Glaucoma VI Diseases of Cardiovascular System
19. Coronary Artery Disease:-
a. Unstable Angina
b. Myocardial infraction with ejection less than 45%
1. Congestive Heart Failure- Left , Right
2. Cardiac Valvular Diseases with failure/complications
3. Cardiomyopathies
4. Heart disease with surgical intervention alongwith complications VII Chest Diseases
5. Bronchiectasis
6. Interstitial Lung Disease
7. Chronic Obstructive Lung Diseases (COPD) with congestive heart failure (Cor Pulmonale) VIII Diseases of the Digestive System
8. Cirrhosis of liver with ascities/chronic active hepatitis IX Orthopaedic Diseases
9. Dislocation of vertebra/prolapse of intervertebral disc
10. Non union or delayed union of fracture
11. Post Traumatic Surgical amputation of lower extremity
12. Compound fracture with chronic osteomyelitis X Psychoses
13. Sub-group under this head are listed for clarification
a. Schizophrenia
b. Endogenous depression
c. Manic Depressive Psychosis (MDP)
d. Dementia
XI Others
1. More than 20% burns with infection/complication
2. Chronic Renal Failure
3. Reynaud’s disease/Burger’s disease.

1. In addition to the above list, Director General/Medical Commissioner are authorised to sanction ESB for a
maximum period upto 730 in cases of rare but treatable diseases or under special circumstances, such as,
adverse reaction to drugs which have not been included in the above list, depending on the merits of each
case, on the recommendations of RDMC/AMO or either authorised officers runniong the medical
scheme.
2. To be entitled to the Extended Sickness Benefit an Insured Persons should have been in continuous
employment for 2 years or more at the beginning of a spell of sickness in which the disease is diagnosed
and should also satisfy other contributory conditions.
3. ESB shall be payable for a period of 124 days initially and may be extended up to 309 days in chronic
suitable cases by Regional Dy. Medical Commissioner/Medical Referee/Administrative Medical
Officer/Chief Executive of the E.S.I. Scheme in the State or his nominee on the report of the specialist(S)
Enhanced Sickness Benefits
It was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy /Tubectomy.
Insured Persons eligible to ordinary sickness benefit are paid enhanced sickness benefit at double the rate
of sickness benefit i.e., about full average daily wage for undergoing sterilisation operations for family
welfare. Duration of enhanced Sickness Benefits is upto 7 days in the case of Vasectomy and upto 14
days in the case of the Tubectomy from the date of operation or from the date of admission in the
hospital as the case may be. The period is extendable in case of post operative complications.

Maternity Benefit
Maternity Benefit is payable to an Insured Woman in the following cases subject to contributory conditions:-
Confinement-payable for a period of 12 weeks (84 days) on production of Form 21 and 23.
Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 weeks (42 days) from the date
following miscarriage-on the basis of Form 20 and 23.
Sickness arising out of Pregnancy, Confinement, Premature birth-payable for a period not exceeding one
month-on the basis of Forms 8, 10 and 9.
In the event of the death of the Insured Woman during confinement leaving behind a child, Maternity Benefit
is
payable to her nominee on production of Form 24 (B).
Maternity benefit rate is double the Standard Benefit Rate, or roughly equal to the average daily wage.

Temporary Disablement Benefits(TDB)
(a) TDB is payable to an employee who suffers employment injury (EI) or Occupational Disease and is
certified to be temporarily incapable to work. "Employment Injury" has been defined under Section 2(8)
of the Act, as a personal injury to an employee caused by accident or occupational disease arising out of
and in the course of his employment, being in insurable employment, whether the accident occurs or the
occupational disease is contracted within or outside the territorial limits of India.
b. Certificates Required for TDB:
• Accident Report in form 16,
• Form 8,9,10, 11 and ESIC Med.13.
b. Eligibility for TDB :
• The benefit is not subject to any contributory conditions. An IP is eligible from the day he joins the
insurable employment.
• (d) TDB Rate is 40% over and above the normal sickness benefit rate. This works out to nearly
85% of the average daily wages.
b. Duration of TDB :
• There is no prescribed limit for the duration of TDB. This is payable as long as temporary
disablement lasts and significant improvement by treatment is possible. If a Temporary
Disablement spell lasts for less than 3 days (excluding day of accident), IP will be paid sickness
benefit, if otherwise eligible. A special point for IMOs/IMPs is that some IPs may resist taking a
Final Certificate especially before 3 days for fear of loss of TDB.

Permanent Disablement Benefit (PDB)
(a) PDB is payable to an IP who suffers permanent residual disablement as a result of EI (including
Occupational Diseases) and results in loss of earning capacity. The proper authority for assessing loss of
earning capacity for injuries is the Medical Board and for Occupational Diseases, Special Medical Board.
(b) The duration of PDB may be for the period given by Medical Board, if assessment is provisional or for
entire life if assessment is final.
(c) PDB Rate: The PDB rate is calculated as percentage of loss of earning capacity as assessed by the
Medical Board/MAT/EI Court in relation to TDB. List of injuries deemed to result in permanent total
disablement and percentage loss of earning capacity has been previewed in 2nd
Schedule to ESIC Act,
1948. Hence, the maximum rate of PDB can be equal to the rate of TDB. PDB amount is revised by the
ESIC from time to time to adjust for inflation. The latest enhancement is with effect from 01.08.2002
(d) Commutation of PDB (Regulation 76-B): IP whose PDB has been assessed as final and who has been
awarded the same at the rate not exceeding Rs.1.50 per day may apply for commutation of periodical
payments of PDB into a lump-sum. When an application for commutation is made within 6 months of
the date of communication of Medical Board decision periodical payments shall be commuted into a
lump sum provided the total commuted value does not exceed Rs.10,000 at the time of commencement
of final award. However, where such an application is made after expiry of 6 months, LO/RO will refer
the case to MR/PTMR to certify whether the IP has an average expectation of life for his age. Such a
certificate is issued by Medical Referee in the relevant place on RO/LO letter.
(e) Age of an IP will have to be proved to the satisfaction of the Corporation in all cases. Medical Boards
assess the age of IPs who are not able to produce satisfactory proof of age and opinion of Medical Board
shall be final in this regard.

Dependants’ Benefit(DB)
The dependants’ benefit is payable to the dependants as per Section 52 of the Act read with provision of 6(A)
of Section 2 in cases where an IP dies as result of EI. The age of dependants, has to be determined either by
production of Documentary evidence as specified in Regulation 80(2) or Age certified by Medical Officer In
charge of Government Hospital or Dispensary.
The minimum rate of DB w.e.f 1.1.90 is Rs.14/- per day and these rates of the DB are increased from time to
time. The latest enhancement is with effect from 01.08.2002
Cash Benefits Funeral Expenses
Funeral expenses not exceeding Rs. 5000/- is payable towards expenditure on the funeral of a deceased IP.

Commonly used forms in the ESI Scheme
Form1 -Declaration Form
Form 1 A -Family Declaration Form
Form 1 B -Changes in Family Declaration Form
Form 3 -Return of Declaration Forms
Form 6 - Return of Contributions
Form 12 - Sickness of Temporary Disablement Benefit
Form 12 A - Maternity Benefit for Sickness
Form 13 - Sickness or Temporary disablement or maternity benefit for sickness
Form 13 A - Maternity benefit for sickness
Form 14 - Sickness or temporary disablement or maternity benefit for sickness
Form 14 A - Maternity Benefit for Sickness
Form 16 - Accident report from employer
Form 17 - Dependant's or funeral benefit (Death Certificate)
Form 18 -Dependant's Benefit (Claim Form)
Form 18 A - Dependant's Benefit ( Claim for periodical payments)
Form 19 -Maternity Benefit (Noice of Pregnency)
Form 20 - Maternity Benefit ( Certificate of Pregnancy
Form 21 - Maternity Benefit (Cetificate of expected confinement)
Form 22 - Claim for Maternity Benefit
Form 23 - Maternity Benefit (Certificate of confinement or miscarriage)
Form 24 - Maternity Benefit (Notice of work)
Form 25 -Claim for Permanent Disablement Benefit
Form 26 -Certificate for permanent disablement benefit
Form 27 - Declaration and certificate for depenant's benefit

PF AND ESIC

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PF AND ESIC