P.F and E.S.I.C Departments are working under the Ministry of Labour. These both departments mainly work for the Employees Welfare.
P.F (PROVIDENT FUND): –
P.F. Deducted on Basic + D.A + Cash value of Food Allowance @ 12%. (Read: Draft notice on including allowance for PF contribution) It is a statutory deduction. D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
Company pays P.F on either actual basic or Capped Basic. Capped basic decided depend on Company rules it is not restricted. It’s applicable those employee basic exceeds Rs. 6500/- only.
Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund.
Employer also needs to pay additional charges on every month over and above PF Company Contribution. The break up is
- 1.1% P.F Administration Charges,
- 0.5 % on Employee Deposit Linked Insurance (E.D. L.I) and
- 0.01% E.D.L.I Administration Charges.
The company needs to file Monthly Returns and Annual Returns. Company have to submit every moth duly paid P.F Challan, Form 12A, Form 5 (additions) and Form 10 (deletions) and Nomination from 2 (newly joined employee details). In annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payment details.
The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joinee to the scheme along with the monthly report.
P.F. Monthly payment due date is 15th (with grace up to 21st) and Annual Return due date is 30th April of every Year as per P.F authorities treated one year is from 1st March to 28th February.
Any employee who wishes to transfer his old company’s PF balances
He can transfer his PF Current A/C with using Form 13 signed by current employer (who he joined new company employer) and old employer to submit Form 3A to P.F office. Employee P.F Number will be change of every company.
Employee can also withdraw their PF amount before retirement subject to certain conditions. Read this to know the Procedure to withdraw PF amount.
E.S.I.C (EMPLOYEES STATE INSURANCE CORPORATION):
1) E.S.I.C is also Statutory Deduction from employee whose GROSS salary is less than or equal to Rs. 15,000/-. If company has below 20 employees in E.S.I.C Purview Company is not liable to pay E.S.I.C.
2) E.S.I.C is calculated on Gross Salary of Employee @ 1.75% as Employee contribution and 4.75% of Employer Contribution there by totaling to 6.5% of Gross Salary.
The Company needs to file Half Yearly Returns for the period
- 1st April to 30 September and
- 1st October to 31st March
There is no monthly Returns for ESIC. Employer must pay the ESIC amounts every month on 15th (with grace by 25th).
In case any employees cross the limit of Rs. 7500/- of Gross Salary, he must continue to pay till the end of half year.
E.S.I.C half Yearly Returns submission / due dates are; November 15th and May 15.
Check out this link to know the Statutory Dues of all the Payments: Statutory Payment Due Dates Chart