1. Employees Provident Funds & Employees State Insurance

2. Eligibility  Any person who is employed for work of an establishment or  Employed through contractor in or in connection with the work of an establishment.Applicability  every establishment which is a factory engaged in any industry specified in schedule I and in which 20 or more person are employed.  any other establishment employing 20 or more persons which central government may by notification, specify in this behalf.  any establishment employing even less than 20 persons can be covered volunatarily under section 1 (4) of the act.  cinema theatres employing 5 or more persons

3. Application of the Act  The act extends to the whole of India [sec.1(2)] except to the state of Jammu & Kashmir The Act not applies to:  The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)  16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules framed by the Govt.  16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules

4. Employees’ Provident Funds & Misc. Provisions Act, 1952 & The scheme Benefits: Employees covered enjoy a benefit of social security in the Form of an: 1.Financial nest egg to which employees and employers contribute equally throughout the covered persons employment. (This sum is payable normally on retirement or death.) 2. Employees pension scheme 3. Employees deposit linked insurance scheme.

5. Benefits  Employees can take advances / withdraw the PF in case of retirement, medical care, housing, family obligation, education of children & financing of life Insurance Polices  Upto 90% of the PF amount can be withdrawn at the age of 54 years or before one year of actual retirement  PF amount of the deceased member is payable to nominees / legal heirs  Equal contribution by the employer  PF A/c can be transferred if any member changes from one establishment to other where the PF Scheme is applicable

6. Advances / Withdrawals Purchase of site for construction of House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalisation for more than a month / major surgical operation / suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc Marriage of self / son / daughter / sister / brother Education of son / daughter Physically handicapped member for purchasing an equipment to minimize the hardship due to handicap

7. Interest Interest is credited to the members PF A/c on monthly running balance Interest rate is fixed by the Central Government in consultation with the Central Board of trustees of EEPF every year during March / April The present rate of interest is 8.25% Nomination The member can nominate other person / persons to receive the Fund amount in the event of his death. The nomination details provided by the members are maintained at the Regional Provident Fund Office for use in the event of death of the member

8. Full Settlement PF A/c settled immediately under the following circumstances: Retirement after 58 years Retirement on account of permanent incapacity Termination of service on retrenchment Voluntary Retirement Scheme (VRS) Permanent migration from India to settle abroad / taking employment For female members leaving service for getting married PF A/c settled after two months under the circumstances; Resignation from the services

9. Employees’ Pension Scheme: Introduction To give long term protection / financial security to employee upon retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme Application Scheme is compulsory for all the existing members who become members of the Employees Provident Fund Scheme Eligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent total disablement during service

10. Contribution under EPF Scheme,1952 1. Employees : 12% on (Basic + DA) 2. Employer : (a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

11. 1. Employee: Not required 2. Employer : (a) 8.33% on Basic + DA It is to be noted that where the pay of the member exceeds Rs. 6,500/- per month, the contribution payable by the employer will be limited to the amt. payable on his pay of Rs. 6,500/- only. THE EMPLOYEES’ PENSION SCHEME, 1995 CONTRIBUTION

12. Pension for life: (Pensionable Pay X Pensionable Service) / 70 To the member, on superannuation/retirement and invalidation: To the members of the family upon death of the member: Pension to Widow/Widower for life or till re-marriage: Commutation of pension up to 1/3rd of pension amount Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years. Superannuation/retirement pension under the new scheme will be payable on fulfilling:- – Minimum 10 years eligible service and – Attaining age of 58 years. EMPLOYEE PENSION SCHEME, 1995

13. Application EDLI scheme,1976 is compulsory for all the existing members who become members of the PF Scheme Life insurance benefit (death coverage) of the employee is available under this scheme while in service Calculation EDLI is calculated on EDLI slab – Rs. 6500/- 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and transferred to EDLI fund 0.01% EDLI Administration charges calculated on total EDLI wages EDLI / administration charges are payable by the employer Eligible Person who is eligible to receive PF dues of deceased member who died while in service is only eligible to receive EDLI fund Exemption Employer can seek exemption from the Scheme if similar / better benefits are provided other than the Scheme with the consent of majority of employees

14. The Employees’ Deposit-Linked Insurance Scheme, 1976 Contribution 1.Employees : Not required 2. Employer : (a) 0.5% on Basic + DA (b) Administrative Charges : 0.01% on Basic +DA

15. EDLI Scheme Assurance Benefit : The benefit provided under the Employees' Deposit Linked Insurance Scheme is called Assurance Benefit. On the death of the member while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme. Scale of Assurance Benefit : the amount of benefits has been increased to Rs. 100,000/- from 2010

16. CONTRIBUTIONS

17. Payment of contribution The employer shall pay the contribution payble to the employees provident fund, employees deposite linked insurance, and employees pension fund in respect of the Member of the employees pension fund by him directly by or through a contractor. It shall be the responsibility of the principal employer to pay the contributions payble to the EPF, EDLI and EPS by him self in respect of the employees directly employed by him and also in respect of the employees employed by or through a Contractor.

18. Employer Role & Responsibility

19. MONTHLY RETURNS Filing monthly Electronic Challan cum Return (ECR) with the EPFO within 15 days of the close of each month. Provide list of new employees joined in the establishment during the preceding month & are qualified to become member in fund – Part B Provide list of employees leaving service during the preceding month – Part C Provide Member’s Arrear details – Part D

20. Penalty 12–37% interest is payable for the delayed period in remitting contributions/ administrative charges depending upon the delayed period Exemption Employer can seek exemption from the Scheme if similar / better benefits are provided other than the Scheme by forming a Voluntary PF Trust which will work under the rules & regulations of EPFO

21. Employee Role & Responsibility

22. Provide details of self & nominees (Form-2) for PF & Pension Scheme at the time of joining the establishment In case of already having PF A/c, apply for transfer of previous A/c to the present A/c If willing to increase contribution, inform the same to the employer to deduct the amount from the salary (Voluntary Provident Fund). Voluntary PF can be upto 100% of wages Understand that the employer is not liable to pay any contribution on voluntary PF Understand that Employees' Provident Fund Organization does not have any agent / middlemen

23. List of Forms

24. Forms For Claiming Benefits Under PF Scheme FormPurpose 13 (revised) For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme 14 Application for financing a life insurance policy out of PF A/c 19 To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination 20 In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation 31 For the use of PF members to avail advances / withdrawals as provided in the scheme

25. FormPurpose 10 CTo be submitted by a member to withdraw his EPS fund 10 D To be submitted by the first claimant i.e. - member - widow / widower - Orphan - nominee

26. FormPurpose 5 (I.F.) To be submitted by the person eligible to receive the PF A/c dues of the deceased member who died while in services

27. INTERNATIONAL WORKER

28. Who is an International Worker (IW)? An International Worker (IW) may be an Indian worker or a foreign national. International Worker means: - Any Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement; - An employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in India to which the EPF & MP Act, 1952 applies;

29. 2. Is an Indian worker holding COC (Certificate of Coverage), an International Worker? Merely holding the COC does not make an employee an International Worker. He becomes IW only after being eligible to avail the benefits under social security programme of any country. After obtaining COC, the employee is exempted from contributing to the social security systems of the foreign country with whom India has SSA, hence he is not eligible to avail the benefits under the social security programme of that country.

30. 3. Who is an 'excluded employee' under these provisions? 'Excluded employee' means:- A detached International Worker contributing to the social security programme of the home country and certified as such by a Detachment Certificate for a specified period in terms of the bilateral SSA signed between that country and India or an International Worker, who is contributing to a social security programme of his country of origin, either as a citizen or resident, with whom India has entered in to a bilateral comprehensive economic agreement containing a clause on social security prior to 1st October,2008, which specifically exempts natural persons of either country to contribute to the social security fund of the host country

31. 6. Whether PF rules will apply to an employee if his salary is paid outside India? Yes, the provisions will apply irrespective of where the salary is paid. The PF contributions are liable to be paid on wages DA, and Retaining Allowance, if any, payable to the employee by establishment in India. 7. Whether PF will be payable only on the part of salary paid in India in case of split payroll? In case of split payroll the contribution shall be paid on the total salary earned by the employee in the establishment covered in India.

32. 8. 'Monthly Pay' for calculating contributions to be paid under the Act? The contribution shall be calculated on the basis of monthly pay containing the following components actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis: Basic wages Dearness allowance (all cash payments by whatever name called paid to an employee onaccount of a rise in the cost of living) Retaining allowance Cash value of any food concession

33. 9. What portion of salary on which PF would be payable in case an individual has multiple country responsibilities and spends part of his time outside India? Contribution is payable on the total salary payable on account of the employment of the employee employed for wages by an establishment covered in India even for responsibility outside India. 10. Is there a minimum period of days of stay in India which the employee can work in India without triggering PF compliance? No minimum period is prescribed. Every eligible International Worker has to be enrolled from the first date of his employment in India.

34. 11. Is there a cap on the salary up to which the contribution has to be made by both the employer as well as the employee? No, there is no cap on the salary on which contributions are payable by the employer as well as employee. 12. Is there a cap on the salary up to which the employer’s share of contribution has to be diverted to EPS? No, there is no cap on the salary up to which the employer’s share of contribution has to be diverted to EPS, 1995 and the same is payable on total salary of the employee. 13. What is a Social Security Agreement (SSA)? A Social Security Agreement is a bilateral instrument to protect the social security interests of workers posted in another country. Being a reciprocal arrangement, it generally provides for avoidance of double coverage.

35. 14. What are the provisions covered in a Social Security Agreement (SSA)? Generally a Social Security Agreement covers three provisions. They are: a) Detachment: a) Detachment: Applies to employees sent on posting in another country, provided they are complying under the social security system of the home country. b) Exportability of Pension: b) Exportability of Pension: Provision for payment of pension benefits directly without any reduction to the beneficiary choosing to reside in the territory of the home country as also to a beneficiary choosing to reside in the territory of a third country. c) Totalisation of Benefits: c) Totalisation of Benefits: The period of service rendered by an employee in a foreign country is counted for determining the "eligibility" for benefits, but the quantum of payment is restricted to the length of service, on pro-rata basis.

36. 15. What is the status of the Social Security Agreements (SSA)? Eight Social Security Agreements in respect of Belgium, Germany, Switzerland, Denmark,Luxembourg, France, South Korea and the Netherlands have been made effective from 1st September, 2009, 1st October, 2009, 29th January, 2011, 1st May, 2011, 1st June, 2011, 1st July, 2011, 1st November, 2011 and 1st December, 2011 respectively. 16. Should the eligible employees from any country other than the countries with whom India has entered a social security agreement contribute as International Workers? Each and every worker from a country not having either SSA or bilateral comprehensive economic agreement with India has to be covered mandatorily.

37. 17. Regarding Indian employees working abroad and contributing to the Social Security Scheme of that country with whom India has a Social Security Agreement, are they coverable for PF in India or treated as excluded employees? No, only employees working in establishments situated and covered in India may be covered in India. 18. Regarding Indian employees working abroad and contributing to the social security scheme of a country with which India DOES NOT have a Social Security Agreement, are they coverable for PF in India? If an Indian employee is employed in any covered establishment in India and sent abroad on posting, he is liable to be a member in India as a domestic Indian employee, if otherwise eligible. He is not an International Worker.

38. 19. Whether International Worker employed in India and being paid in foreign currency are coverable? Yes, such nationals drawing salary in any currency and in any manner are to be covered as IWs. 20. Whether International Workers employed directly by an Indian establishment are coverable? International Workers employed directly by an Indian establishment would be coverable under the EPF and MP Act, 1952 as Iws.

39. 21. What is the criterion for receiving the withdrawal benefit for services less than 10 years under EPS, 1995? Only those employees covered by a SSA will be eligible for withdrawal benefit under the EPS, 1995, who have not rendered the eligible service (i.e. 10 years) even after including the totalisation benefit if any as may be provided in the said agreement. In all other cases of IWs not covered under SSA, withdrawal benefit under the EPS, 1995 will not be available.

40. 22. How long can an Indian employee retain the status of "International Worker"? An Indian employee attains the status of "International Worker" only when he becomes eligible to avail benefits under the social security programme of other country by virtue of the eligibility gained or going to gain, under the said agreement on account of employment in a country with which India has signed SSA. He/she shall remain in that status till the time he/she avails the benefits under EPF Scheme. In other words, once an IW, always an IW. 23. Whether the International Worker will earn interest even after cessation of service after three years also in view of provisions of inoperative accounts? Since the provisions of inoperative accounts are not applicable in case of international workers, they will continue to earn interest till the amount of Provident Fund is finally withdrawn.

41. 24. Under what circumstances accumulations in the PF account are payable to an InternationalWorker The full amount standing to the credit of a member's account is payable in the following circumstances: (I) persons covered SSAon ceasing to be an employee in an establishment covered under the Act. (II) persons NOT covered SSA- (i) on retirement from service in the establishment at any time after 58 years of age; (ii) on retirement on account of permanent and total incapacity for work due to bodily or mental infirmity, duly certified by the authorised medical officer; 25. Is there a cap on the salary up to which the contribution has to be made under the EDLI Scheme, 1976 by the employer? Yes, the cap on the salary up to which contribution has to be made under the EDLI Scheme, 1976 is Rs. 6,500.

42. ESI

43. THE EMPLOYEE’S STATE INSURANCE ACT 1948

44. ESI Scheme for India is an integrated social security scheme tailored to provide Social Production to workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or Occupational hazardAPPLICABILITY Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

45. Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs. *Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same. The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010). Registration Registration Registration is the process by which every employer/factory and its every employee employed for wages, is identified for the purpose of the Scheme, and their individual records are set up for them.

46. Seasonal factories Factories exempted as seasonal Mines Railway running sheds Govt. factories or establishments and Indian naval, military, or air force Other Govt. notified exempted establishments NON - COVERAGE

47. TIME AND METHOD OF PAYMENT OF CONTRIBUTION Both employer and employees contribution are to be piad in cash or in cheque in SBI or any other bank authorised by ESI By filling a challan with in 21 days following the end of the calender month in which the contribution falls due.

48. WAGES Defined … Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorised leave, lock out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include :- a). Any contribution paid by the employer to any pension fund or Provident fund, or under this act; b). Any traveling allowance or the value of any traveling concession; c). Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment ; or d). Any gratuity payable on discharge.

49. The Scheme is primarily funded by contribution raised from Insured Employees and their employers Payable such as 1. Employees’ Contribution – 1.75% of the Wages 2. Employers’ Contribution – 4.75% of the Wages TOTAL - 6.5 % of the Wages Employees in receipt of an average daily wage of Rs.40/- or Less, are exempted from Payment of their share of contribution (w.e.f 8.4.2000) but are entitled to all social security benefits under the Scheme.

50. Contribution & Benefit Period … Employees covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six month time span from 1 st April to 30 th September and 1 st October to 31 st March. Cash benefits under the scheme are generally liked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two type of periods are elucidated below. Contribution Period Benefit Period 1 st April to 30 th September 1 st January to 30 th June of the following year 1 st October to 31 st March 1 st July to 31 st Dec.

51. ADVANTAGES OF EMPLOYERS … 1. Employers are absolved of their liabilities of providing medical facilities to employees and their dependents in kind or in the form of fixed cash allowance, reimbursement of actual expenses, lump sum grant or opting for any other medical insurance policy of limited scope unless it is a contractual obligation of the employer 2). Employers are exempted from the applicability of the : - (a). Maternity Benefit Act (b). Workmen's’ Compensation Act in respect of employee covered under the ESI Scheme 3). Employers have their disposal, a productivity, well secured workforce, an essential ingredient for better productivity

52. 4). Employers are absolved of any responsibility in times of Physical distress of workers such as sickness, employment injury or Physical disablement resulting in loss of wages, as the responsibility of Paying cash benefits shits to the corporation in respect of insured employees 5). Any sum paid by way of contribution under the ESI Act is deducted in computing ‘income’ under the Income Tax Act ADVANTAGES OF EMPLOYERS …

53. Benefits to Employees … ESI Scheme Major Social Security Benefits in Cash and Kind include … 1. Medical Benefit – for self & Family 2. Sickness Benefit – for self 3. Maternity Benefit - for self 4. Disablement Benefit a). Temporary Disablement Benefit – for self b). Permanent Disablement Benefit – for self 5. Dependents’ Benefit – for dependents in case of death due to employment injury

54. In addition, the Scheme also provides some other need based benefits to insured workers. These are: i). Funeral Expenses – to a person who performs the last rites of IP ii). Rehabilitation allowances – for self iii). Vocational Rehabilitation - for self iv). Old age Medicare – for self and spouse v). Medical Bonus – for insured women and IP’s wife

55. Obligation of the Employers … 1). Get your Factory / establishment registered with in 15 days after the Act becomes applicable. Submit Form 01 to the Regional office for this purpose. Obtain Employer’s code No. for use in all ESIC Forms / documents and correspondence with the offices of the ESI Corporation. Section 2(12) or 1(5) of ESI Act 2). Fill up Declaration Forms in respect of all coverable employees and submit the same to the Regional Office/ Local Office of the corporation well before the ‘Appointed Day’ and obtain insurance Numbers from the concerned Local Office/ Regional Office, In respect of newly appointed employees, fill up the declaration form soon after appointment of such employees and submit the same to the Local Office Concerned.

56. 3). Pending receipt of identity cards/ identity certificates you may issue “certificate of employment” in Form 86 to the covered employee(s) enabling them to avail cash/medical Benefits 4). Pay ESI contribution (Employee's Share @4.75% and the Employer’s share @ 1.75% of the wages) with in 21 days of the month following, in which the wages fall due. 5).Maintain an Accident Book as prescribed under the Factory Act / ESI Act. 6).Submit an Accident Report to the Local Office / ESI Dispensary concerned immediately in respect of accidents that could result in death or disablement and within 24 hours of its occurrence otherwise. Minor accidents which do not cause absence from work need not be reported 7).Grant leave to insured employees on the basis of sickness certificates issued by any authorised ESI doctor.

57. Maintain the following records/ registers properly for the purpose of inspection 1.Attendance Registers / Muster Rolls (in respect of all employees including those employed through contractors) 1.Wage register 2.Cash Book / Bank Book 3.Account Books including Ledgers and Vouchers, 1. Balance Sheet. 1.Employees’ Register 1.Accident Book 1.Returns of Contribution Return of Declaration Forms Copies of Challans 1.Inspection Book

58. 9. Submit return of contribution within 42 days of the expiry of contribution period. 10. Intimate the date of closure of shifting (Temporary or Permanent) of the Factory / Establishment to the Regional office / Local Office within seven days of its closure or shifting 11. Promptly report change in business activity, ownership of the concern or its management. 12. Ascertain the liability towards ESI dues, while taking over the ownership of any factory/establishment by purchase, gift, lease or license or in any other manner whatsoever as new owner is liable to discharge the past liabilities if any

59. FORM NO.SUBJECTRELEVANT REGULATION TO BE USED BY FORM-01Employer's Registration Form10 BEmployer FORM- 01(A) Form of annual information on factory/establishment covered under ESI Act 10 CEmployer FORM-1Declaration Form11 & 12Employer FORM-1(A)Family Declaration Form15-AEmployer FORM-2Addition/Deletion in Family Declaration Form 15-BEmployer FORM-3Return of Declaration Form14Employer FORM-5Return of Contribution26Employer FORM-5(A)Advance payment of contribution31Employer FORM-5 (New) Return of Contribution (New)31Employer FORM-6Register of Employees32Employer FORM-9Claim for Sickness/ Temporary Disablement Benefit/Maternity Benefit 63 & 89(B)IP/Beneficiary LIST OF FORMS

60. FORM-11Accident Book66Employer FORM-12Accident Report from Employer68Employer FORM-14Claim for Permanent Disablement Benefit 76(a)IP/Beneficiary FORM-15Claim for Dependent Benefit80IP/Beneficiary FORM-16Claim for periodical payment of Dependent Benefits 83(A)IP/Beneficiary FORM-19Claim for Maternity Benefit and notice of work 88, 89 & 91IP/Beneficiary FORM-20Claim for Maternity Benefit after the death of an Insured Women leaving behind the child 89(A)IP/Beneficiary FORM-22Funeral Expenses Claim95(E)Beneficiary FORM-23Life Certificate for Permanent Disablement Benefit 107IP/Beneficiary FORM-24Declaration and Certificate for Dependents Benefit 107(A)IP/Beneficiary

61. THANK YOU