Training for worker on PF and ESIC.ppt
- 1. Information / Awareness about ESI & PF
- 2. EMPLOYEE’S PROVIDENT FUND What is Provident Fund? The provident fund is a contributory amount collected by both the employer & employee to secure the future of Employees of an organization. It is a joint effort made by an employer & employee both, so as to save a handsome amount and secure his future when an employee is not in the position to work.
- 3. How PF is contributed? The Employee Contribution is 12% of Basic salary goes to Employee’s PF. The Employer’s contribution is divided under various schemes i.e. • 3.67% goes to PF • 8.33% goes to Family Pension • 0.5% goes to Employee Deposit Link Insurance Scheme. • 1.11 % is administrative charges on the above deductions.
- 4. Benefits of PF Highest interest rate currently @ 9.5 % p.a. If PF is continuously deducted for 10 yrs, one will become eligible to get pension after retirement from services. Any employee whose PF is being deducted in case of his death at any time during the employment, his spouse & two children will be eligible to get pension. From EDLI scheme you will be eligible to get an amount up to 72,000 as a quick relief in case of sudden death of employee during employment. Further PF amount is also exempted from income tax.
- 5. Employee State Insurance Schemes (ESI) Employee state insurance schemes are the schemes of social insurance under which industrial workers are compulsorily insured against certain risks such as sickness, maternity,& employment injury. The insured worker is given certain benefits out of the fund created by the contributions from the workers, their employers and the state when-ever any of these contingencies arise.
- 6. Contributions Under ESI ESI contribution made by employee is 1.75% of the gross salary of employee not more than Rs.7500/-. ESI contribution made by Employer is 4.75% of the gross salary of employee.
- 7. Benefits of ESI There are six benefits under ESI schemes. 1. Sickness Benefit 2. Maternity Benefit 3. Medical Benefit 4. Disablement Benefit 5. Dependent Benefit 6. Funeral Benefit
- 8. Sickness benefit Sickness benefit consists of periodical payments in the event of his/ her sickness, certified by a duly appointed medical practitioner or any other person possessing such qualifications & experience as specified by the corporation. The periodical payments do not compensate fully for the wage loss as the rate of sickness benefit approximates only half of wage loss.
- 9. Maternity Benefit Maternity Benefit provides for periodical payment in case of confinement/miscarriage/ sickness arises out of pregnancy confinement and premature birth to an insured women employee. The daily rate of Maternity Benefit is twice the wages of the women worker concerned. The benefit is payable for a maximum period of 12 weeks
- 10. Medical Benefit Medical Benefit is payable in the form of medical treatment for and attendance on insured persons.
- 11. Disablement Benefit If an insured employee is injured in the course of his employment he will receive free medical treatment & temporary disablement benefit in case which is about 70% of his wages as long as the temporary disablement lasts. In case of permanent total disablement the injured employees will get life pension at full rate, while incase of permanent disablement a portion of it is will be granted as life pension.
- 12. Dependence Benefit If an insured employee dies as a result of an accident or an occupational disease arising out of and in the course of employment, his dependents benefits of 40 % more than the standard benefit rate as pension. When an insured person dies of employment injury, dependence benefit shall be payable to 1. Son (until he attains 18 yrs of age) 2. Widow (life or until re-marriage) 3. Daughter (until he attains 18 yrs of age or marriage which ever is earlier)
- 13. Funeral Benefit Funeral benefit comprises payment towards the expenditure on the funeral of an insured person who has died. It is payable to the eldest surviving member of the deceased person’s family. The amount of funeral benefit is not to exceed rupees 1500/- A claim for payment of the benefit must be made within 3 months of the death of insured person or within such extended period as allowed by the corporation or an authority.