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18 October 2019, 11:42   Report Abuse

estartindia





[ Scorecard : 24]


Provident Fund: The aim of the EPF scheme is to promote retirement savings for employees across India. The EPF is a collection of funds built through regular/monthly contributions made by an employee and their employer. It’s amount based on fixed rate..

Employee Provident Fund: Employees provident fund is a very good opportunity for layout for long term declination but if you are acquire predicament executing your ppf account due to transfer or any comprehension and there can be only one PPF account in the name of a specific person alternative of opting a new PPF account , you have the option for relocate your PPF narrative to another city or another bank, accordingly it is enlightened  to transfer your account as a substitute of opening a new one.

Period: The Clinch period of Provident fund account is 15 years account cannot be closed before 15 years although it can be transfigured in regulation to transfer the narrative from one subdivision bank to another subdivision bank, you will have to fill an utilization form in the bank branch location where you have account in bank.

Provident Fund Registration Applicability:                   

  1. PF registration is applicable for all enactments where employees engaged 20 or more enhanced person.
  2. PF augmentation paid by employer is 6% of (basic salary+ dearness allowance+ Retaining allowance).
  3. It is requisite that employee’s representation is less than Rs. 15000 per month to become member of employee provident fund, as per employee provident fund standard procedure necessary allowance is more than Rs. 15000 per month at the specific time allotment.
  4. It is not required to make Provident fund augmentation.

Import Aspects relating to Provident fund registration:

  1. Provident Fund Reivistation: Creature having Provident fund matriculation every month, Provident fund arrival is due on 25th of each month and due 25 April of the year ended on 31st March.
  2. Provident Fund Reimbursement: Provident fund reimbursement are due on 15 of each month, employer must deposit a security total of 12% or 10% of employees wages in the direction of interiorly provident fund on before this date every month.
  3. Consolidated Entrance: Provident fund like provident fund registration it rebound filing and payment of provident fund augmentation has been made available on line through cooperative portal.
  4. Universal Account Number: Employees provident fund has floated the unified portal uncommunicative and facilitate all aspects of provident fund for both employers and employees.
  5. Provident Fund Uncommunicative: Provident fund withdrawn house purchase, medical reasons, marriage or education of family members.

Employees State Insurance: The Employees State Insurance Scheme is an interspersed improvement of Social Insurance demonstrate in the Employees State Insurance Act and it is create to consummate the task of preserving employees as defined in ESI Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.

On factories and other establishment’s, the ESI scheme are applies viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical conservatories wherein 10 or more persons are employed. However, in some States threshold limit for analysis of establishments is still 20. Under the ESI Act Employees of the above said categories of factories and establishments, drawing wages up to Rs.15, 000/- a month, are authorized to social security. ESI Creature has also decided to enhance wage ceiling for coverage of employees under the ESI Act from Rs.15, 000/- to Rs.21, 000/-.

Insurance Security:   Employees enrolled under ESI enjoy a range of betterment under this strategy. Employee appreciate medical involvement treatment for the person protected and their families including full range of medical, surgical and be strike hospitalization, resource of all drugs ambulance services, super circumstance deliberation to medical care, insured persons also enjoy sick benefits.

Comprehension to reasons to register an ESI registration

  1. Employees State Insurance: ESI is a self expenditure communal redemption and health indemnification for Indian workers, for all employees earning INR 21000 or less per month as wages, employer giver 4.75%employee contributes 11.75% and total share 6.5%.
  2. Employees State Insurance contribution:  ESI contribution on medical benefits to every employees and provides an opportunity social security.
  3. Employees State Insurance Benefits: ESI provides number of benefits to their employees, Maternity benefits, Social Security, Sanitary and cleanliness benefits, Sayeta, health benefits, wages, remuneration to every employee.
  4. Employees State Insurance records: ESI state insurance maintains register kept all the records of their employees identity and Address proof of their employees Driving License, Voter Id,Aadhar Card,Passport, Pan card Number etc.

Advantages and disadvantages of registration under PF and ESI are:

Advantages:

  • It helps in marriage; educations need for self children any siblings.
  • On purchase of your dream house.
  • Medical Emergency.
  • Death benefits family receive provident fund.
  • Withdrawal benefits.
  • Pension benefits.
  • Insurance benefits.

Disadvantages: More than 13% of the employee to the ET abundance inspection retreat their Provident Fund balance each time whenever they changed jobs. Provident Fund Withdrawal can be anti-productive on two counts.

  • The member withdraws extent which is usually blown away by unrestricted expenses and retirement savings are behind to square one.
  • If the individual withdraws his Provident Fund antithesis before accomplish five years then the amount metamorphoses taxable.

Conclusion: According to my perspective every person should apply for employee provident fund registration under this act, so that the adequate social security can be ensured for everyone.

 

 

 



29 October 2019, 23:17  

HarrisonPaine





[ Scorecard : 22]


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