Dear all Plz clarify why the contributions, 1.75% & 4.75% on ESI and 12% &13.61 % on PF both the employee and Employer Thanking You in advance A.T.NAIDU Hr.Exe
first of all i will clarify you that Pf contribution is 12% from employee side as well as 12% from employer side .1.61 % is other different admin and EDLI charges.
now comes to your question it is really vague.it is as per the act.ESI is paid as per ESI act and PF is paid as per PF act and what ever is the provisions in act that has to be followed.
j s malik
You being an HR Exeutive, you should be aware of statutory things. As per ESI Rules on the gross wages for employees/workers it is 1.75% and for employers its 4.75% and this ESI facility is extended upto the extent of Rs. 10,000/- and PF is calculated at 12% on employees on Basic+DA and the same is applicabe to the employers, wheein they have to pay 1.61% towards EDLI and Administrative Charges.
You may please note the employer can pay EDLI contribution directly to PF Office or through LIC of India.
These are called statutory requirements laid down the Central Government for the beneift of wrokers and is not be questioned. You should appreciate that medical is provided to the worker/employee when he/she is sick or meets with an accident while at work. Also, ESI provides 15 days wages to the sick worker/employee in case he employer does not pay wages.
I hope you understood the concept
Thanks 7 REgds,
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