4. COMPARISON BETWEEN ESI & PF ESI PF CONTRIBUTION RATE Employee contribution – 1.75% of the wages (w.e.f. 1.1.97) Employer’s contribution – 4.75% of the wages Employees in receipt of a daily average wage up to Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees. Both the employees and employer contribute to the fund at the rate 12% of the basic wages, dearness allowance and retaining allowance if any payable to employees per month. CONTRIBUTION PERIOD 1 st April – 30 th September 1 st October – 31 st March Contribution for the current month is deposited in the subsequent month BENEFIT PERIOD 1 st January – 31 st June 1 st July – 31 st December - ESI PF CONTRIBUTION RATE Employee contribution – 1.75% of the wages (w.e.f. 1.1.97) Employer’s contribution – 4.75% of the wages Employees in receipt of a daily average wage up to Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees. Both the employees and employer contribute to the fund at the rate 12% of the basic wages, dearness allowance and retaining allowance if any payable to employees per month. CONTRIBUTION PERIOD 1 st April – 30 th September 1 st October – 31 st March Contribution for the current month is deposited in the subsequent month BENEFIT PERIOD 1 st January – 31 st June 1 st July – 31 st December - ANNUAL CONTRIBUTION FOR THE PERIOD - Is from 1 st of March to 28/29 of Feb BENEFITS TO EMPLOYEE Medical benefit Medical benefit after retirement Sickness benefit Maternity benefit Disablement benefit Temporary Disablement benefit Permanent Disablement benefit Funeral expenses Dependent’s benefit Retirement Medical care Housing Family obligation Financing of insurance polices BENEFITS TO EMPLOYER Employer exempted from the applicability of the ESIC for Medicare facility , Maternity Benefit Act , Workmen’s Compensation Act -
8. TYPES OF BENEFITS - PF TYPES OF BENEFITS ELIGIBILITY ELIGIBLE AMOUNT FORM DOCUMENTARY SUPPORT Advance from the fund for repayment of loan 10 years membership of the fund and member should have taken loan from the government body 36 months wages (Basic + DA) or Members own share of contribution + Company’s share of contribution with interest thereon 31 A certificate from the lending authority furnishing the details of loan and outstanding amount Advance from the fund for illness Stay in hospital at least for a month 6 months wages (Basic + DA) 31 A certificate from the medical practitioner for hospitalization or operation Advance from the fund for marriage / Advance from the fund for education 17 years membership of the fund and minimum balance in member’s account should be Rs. 1000/- 50% of member’s own share of contribution 31 Declaration by the member which is attested by the employer Grant of advance in abnormal conditions, Natural calamities etc Certificate of damage from appropriate authority, State Government declaration Rs. 5000/- or 50% of member’s own share of contribution (To apply within 4 months) 31 Certificate of damage from appropriate authority To physically handicapped member for purchase of an equipment required to minimize the hardship on account of handicap Production of medical certificate from a competent medical practitioner to the effect that he is physically handicapped Basic wages + DA for six months or own share of contribution with interest or cost of equipment whichever is least 31 Certificate from the medical practitioner to the effect that the member is physically handicapped.
