Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family. Units or Establishments that have 10 or more employees, drawing the wages up to Rs. 21,000/- (15000/- Before 1st January, 2017) a month are required to be registered for ESIC under the ESI Act 1948 and amendments made thereunder.
The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.
PF is one of The primary platforms of savings for working class in India. An Establishment or business is mandatorily required to obtain EIN No. if total employee strength is 20 or more. The total strength of employee Includes contractors or temporary employees like housekeeping staff, daily wage worker security or other temporary workers in the business. Even if a company has employee strength less than 20 then too company can apply EIN. Provident fund Registration certificate should be obtained within 30 days from the date of completing 20 employees.
EPF is divided into two parts which are provident fund and Employee Pension Scheme. The subscriber Contribution 12% of basic plus daily allowance goes to Provident Fund. In case of employer contribution, 8.33% goes to Employee Pension Scheme out of 12%, rest goes to the provident fund account.The members who complete the age 58 years and completed 10 years of service without any withdrawal gets the benefits of a pension.Member can withdraw from these accumulations to cater to financial exigencies in life – No need to refund unless misused.
On resignation, the member can settle the account. The member receives his PF contribution, Employer Contribution, and Interest.