Exempted employee means an employee to whom a Scheme or the Insurance Scheme, as the case may be, would, but for the exemption granted under section 17, have applied. However, if the wage of an employee as covered under the Act, exceeds the prescribed ceiling he will be continue to remain covered up to prescribed ceiling. Similarly, if a new employee is drawing more than the prescribed wages but he will not be coverable but if he has never been member of Fund, he will be covered up to the prescribe wage ceiling.Now present wage ceiling of Rs.15000/ basic.
The Employees pension scheme membership will cease from the member attains 58 years of age.However he will continue to be member of Employees provident fund till he leave the services and withdraws the PF accumulations.
Every employee including part time worker and those employed by or through contractor is entitled to become member of the scheme from the date of joining the establishment.
With effect from 01/09/1997 an employee is eligible for membership from the very first date of joining the establishment.
“Basic Wages” means emoluments which are earned by employee while on duty or on leave or holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash, but does not include:
a. The cash value of any food concession;
b. Any cash payment, by whatever named called, paid to an employee on account of a rise in the cost of living, House rent Allowance, Overtime Allowance, Bonus, Commission or any other allowance payable to the employee in respect of employment or of work done in such employment.
1. Name of Company
2. Address of company with address proof
3. Date of set up of the Company
4. Company PAN Card
5. Copy of licence, if any
6. Cancelled Cheque of Company
7. List of Directors/ Partners
8. Address proof of Directors/Partners/Proprietor Mail address of Company,
9. Mobile No. of Directors/Partners/Proprietor
10. Digital Signature of Directors/Partners/Proprietor
11. Copy of GST Number
12. Strength of employee ,
13. Memorandum of Articles of Association
14. Aadhar card of Owner
1. Original death certificate of Deceased member
2. No break certificate duly filled in and signed
3. Family members photographs of all claimants (spouse & two children below age of 21 yrs) Three copies
4. LSM-Family members details
5. Birth certificate/school leaving certificate and Aadhar card No.of Deceased and all claimants
6. Any one of SBI/ICICI/AXIS/Dena Bank Pass book/cancelled cheque -Bank name & address ,branch code,IFSC Code –for all claimants
7. Address proof of claimant -Elect Bill,Tax receipt
8. Wage register for last three months from date of death
9. Attendance register for last three months from date of death
10. Joint Declaration form in case of change of deceased details
1. Inspection/Visit Book
2. Form No.5-A submitted online
3. Bank details-Bank pass book,Branch name,IFSC Code
4. Balance sheet for the period of Inspection
5. Payment position format
6. Specimen signature-Digital
7. Attendance sheet/salary sheet for the period of Inspection
1. Whatever amount (12%) is deducted from the salary of an employee , an equivalent matching amount is deposited by the company with PF Account A/c No.of an employee.
2. Interest is accrue @ 8.65% on the monthly basis on balance amount of PF of an employee
3. After becoming member of PF , UAN No of employee is taken which is a universal Number across the country and wherever employee join their service, the same UAN No is used to deposit amount of PF
4. Registration of Aadhar No and Mobile No. are mandatory.Employee can get SMS on his mobile
5. Employee can access by using his PF Account No. to see the statement of his PF accumulations.
6. If employee change his employment in that case also, employee can continue to deposit the PF amount in the same PF Account No.
7. After leaving the services , if employee do not join another establishment , then in that case after two months of leaving service, he can withdraw the entire accumulation of his PF along with Employer’s contributions.
8. After five years of becoming member of PF ,an employee can withdraw the Advance from his PF accumulations for purchase of house,repairing of house or marriage of children, or education of children
9. After becoming member of PF , if unfortunately employee dies due to sickness or in accident ,his legal heir will get monthly minimum pension of Rs.1000/pm though he has contributed of PF only for one month.If diseased member contributed for long period then amount of monthly pension will be increased automatically.
10. If employee has contributed of PF for 10(ten) years , then he will get pension attaining the age of 58 years and it will continue till he or his wife alive.
12. PF amount accumulated/deposited is tax free amount as per section 80 of IT Act
13. Now PF deptt is becoming totally digitization and therefore employee can withdraw his PF Amount through online application ,without the signature of his Employer
Government has made it mandatory for all employees whose salary is up to Rs.15000/ pm to become a member of PF and accordingly 12% contribution is deducted from the salary of an employee and company is adding the same amount of PF and deposit with PF Account of an employee.
15. EDLI Insurance benefits(New):
New Calculation of EDLI w.e.f.15/02/2018 in case of death of PF member as follows:- The average monthly wages drawn (subject to a maximum of 15000.00), during the 12 months preceding the month in which he died, multiplied by 30 times plus 50% of the average balance in the account of the deceased in the Fund whichever is less subject to a ceiling of 1,50,000/-: Provided that the assurance benefit shall not be less than 2.5 lac rupees: Provided further that the assurance benefit shall not exceed 06 lac rupees: Example: Employee DOJ: 01/01/2018, DOD: 20/02/2018, PF salary:10,000/- EPF Deduction: 10,000 / 26(working days) x 18 Present Days = 6923.00, PF contribution @12% 831.00 + Employer share towards EPF @3.67% =254.00 + EPS @8.33% = 577.00 , Total EPF Balance = 1085 + Int. EDLI calcultaion: 10,000 x 30 = 03 Lacs + 50% of EPF balance i.e.543.00. EDLI Benefits would be 3,00,543.00 + Pension to widow and child up to 02 children of age up to 25 years + EPF balance.
The said provision shall be in force for first 02 years from 15/02/2018
Effective 01/01/2017 ,employee receiving wage of Rs.21000/ pm to enroll under ESIC.
However,there is no wage ceiling for coverage of an employee with ‘disability’ 01.04.2016.
If an insured person’s wages/salary becomes more than 21,000/- per month, even then he/she remains covered till the end of a Contribution Period which is either April to September & October to March.
28.01.1968 to 29.11.1975 – Rs. 500/
30.11.1975 to 26.01.1985 – Rs. 1000/
27.01.1985 to 31.03.1992 – Rs.1600/
01.04.1992 to 31.12.1996 – Rs. 3000/
01.01.1997 to 31.03.2004 – Rs. 6,500/
01.04.2004 to 30.09.2006 – Rs. 7,500/
01.10.2006 to 30.04.2010 – Rs. 10,000/
01.05.2010 to 31.12.2016 – Rs. 15000/
01.01.2017 onwards – Rs. 21000/
The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on or before 15th of month following the calendar month in which the wages fall due.
0 to 2.5 Lacs Nil
2.5 Lacs to 5 Lacs
5 Lacs to 10 Lacs
10 Lacs and above
Professionals, job workers, banks, Institutes, Contractors etc…
Nil
500
1250
2400
2000 fix
Last date of payment is 30th June of next year otherwise Simple Interest @ 12% is charged Separately on delayed payment
Schedule of Monthly rate of tax on employees:
0 to 5999
6000 to 8999
9000 to 11999
above
Nil
Nil
Nil
200
Any premises whare in 10 or more persons with the aid of power or 20 or more workers are/were without aid of power working on any day preceding 12 months, wherein Manufacturing process is being carried on
Application for Registration and Renewal of Factory licence along with form No 2 , 3, and applicable fee & approved factory plan with stability certificate to be submitted with Joint Director – Health & Safety,Surat
Employer shall ensure for the health of workers:
– Cleanliness
– Disposal of wastes and effluents
– Proper ventilation and temperature control
– Dust and fume control
– Overcrowding control
– Artificial humidification
– Lighting
– Drinking water
– Spittoons
– Exhaust fans/Ventilation
– Marking for Exit ,Emergency Exit
– Assembly points
– Safety policy
– Guidelines for Visitor’s safety
– Fire Alarm system
– Toilet/Bathroom – Provision as per strength of workmen
Imprisonment upto 2 year or fine upto Rs. 1,00,000 or both: for contravention of the provisions of the Act or Rules .Rs.1000 per day: On continuation of contravention
On contravention of Chapter IV pertaining to safety or dangerous operations: Not less than Rs. 25,000 in case of death. Not less than Rs. 5,000 in case of serious injuries. Subsequent contravention of some provisions: Imprisonment up to 3 years or fine not less than Rs. 10,000 which may extend to Rs. 2,00,000.
Imprisonment up to 6 months or fine up to Rs.10,000 or both: for Obstructing Inspectors
Imprisonment up to 6 months or fine up to Rs. 10,000 or both: for Wrongful disclosing result pertaining to results of analysis
For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger: Imprisonment up to 7 years with fine up to Rs. 2,00,000 and on continuation fine @ Rs.5,000 per day. Imprisonment of 10 years when contravention continues for one year.
It shall apply to-
Certifying Surgeon” means a Certifying Surgeons appointed under section 10 of the Factories Act, 1948;
Person registered as physically handicapped” means a physically handicapped person whose name is registered with an employment exchange; “Physically handicapped person” means a person who, on account of any deficiency, injury, diseases or congenital deformity, is substantially handicapped in obtaining or keeping employment, or in undertaking work on his Own account, of a kind which but for such deficiency, injury, disease or deformity would be Suited to his age, experience and qualification;
The Government of Gujarat has enacted Gujarat physically Handicapped persons (Employment in Factories) Act, 1982. Under this legislation all Inspectors have been appointed as Inspector for implementation of this Act. It applies to factories employing 100 or more workers. Under this Act, employers are required to allocate and appoint 1% of total employment as physically handicapped persons (Disability should be 40%).
It extends to the whole of India.
Every employer shall maintain a register of workers showing the details of employment of beneficiaries
(1) Every employer shall apply for registration of an establishment on its commencement, within a period of sixty days in a a form along with fees as prescribed
(2) After the registration of an establishment, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such changes shall be intimated by the employer to the registering officer within thirty days.
The Employer shall ensure the provisions relating to payment of wages ,Hours of Work, Safety & Health & other welfare measures of Workers.
An employer shall also be responsible for providing constant and adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents.
In case the contractor fails to make payment of compensation then, in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Employees Compensation Act, 1923.
An employer shall, at least thirty days before the commencement of any building or other construction work, send notice to the Inspector having jurisdiction in the area , a written notice containing-
(a) The name and situation of the place, responsible person, and communication address
(b) The nature of the work involved and the facilities & arrangements for the storage of explosives,
(c) The number of workers likely to be employed
(d) The approximate duration of the work;
(e) Any change occurs shall intimate to the Inspector within two days of such change.
i. Any person employed on wages/salary.
ii. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
iii. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
Gratuity = Monthly Salary/26* 15 days* No. of years service Max. Gratuity Payable under the Act is Rs. 10,00,000/- (w.e.f. 24-05-2010
Non-payment of gratuity payable under the Act is punishable with imprisonment up to 2 years (Minimum 6 Months) and or fine up to Rs.20,000/- Other contraventions/offences attract imprisonment up to 1 year and/or fine up to Rs.10,000/-
Every establishment in which 10 or more workmen are employed or were employed on any of the preceding 12 months as contract labour – Gujarat state rule
Every contractor who employs or who employed on any day of the preceding twelve months 10 or more workmen.
Principal employer employing 10 or more workers through the contractor or the contractor(s), needs to register its establishment under the Act, on deposit of required fee in Form1.
To regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.
Any Contractor engaging 10 or more workers needs to procure a License to operate, on deposit of required fee in Form IV.
Valid for specified period.
The Appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour.
Contractor shall provide Canteens if applicable,First Aid facilities,Drinking water,Latrines,Washing facilities
As per the Maternity Benefit Amendment Bill, 2017, female employees are now entitled to 26 weeks of paid maternity leave, which is an increase from the 12-week leave earlier. This landmark reform aims to support working mothers both physically and emotionally after childbirth. It enables them to fulfil their responsibilities towards their child’s early developmental needs while maintaining job security.
By providing an extended maternity leave period, organisations can foster a progressive work culture with family- friendly policies. This also improves employee retention in the long run. In this article, let’s examine the maternity leave provisions in India in detail and their importance along with benefits.
Maternity Leave is a provision made by the Indian Government under the Maternity Benefit Act, of 2017. It safeguards the health and well-being of both pregnant female employees and their newborn babies. The Act defines maternity leave as a period of fully paid leave that expectant and nursing mothers are entitled to take from their employers.
It provides support to working women during and after pregnancy by enabling them to temporarily cease employment duties to care for themselves and their children. Maternity leave rules in India for private companies and public sectors are the same. The leave can be availed by women employees in both types of organisations with 10 or more workers.
The amendment in 2017 significantly improved upon the previous Maternity Act of 1961. It specifies the entitlement of women to different categories of maternity leave and benefits. To be eligible for the benefit, certain criteria regarding employment must be fulfilled.
To be eligible for maternity leave in India, certain criteria of maternity leave rules in India must be met. Those include:
1. The employee should have worked for at least 80 days in the 12 months preceding the expected delivery date. This is the foremost norm of maternity leave eligibility in India.
2. Pregnant women, those opting for adoption or experiencing miscarriage, are eligible. Even miscarriage leave for government employees is allowed.
3. Medical Termination of Pregnancy or miscarriage is payable for 6 weeks, or 42 days, from the date of miscarriage.
4. Surrogate/commissioning mothers get 26 weeks’ leave from the date the newborn is handed to adoptive parents.
5. 26 weeks leave for the first two deliveries and 12 weeks for the subsequent deliveries are provided.
6. Full salary is paid during the entire leave duration.
7. Childcare leave and a guarantee to return to the same or equivalent post are provided.
8. The Act applies to all organisations. Maternity leave in private sector is similar to that in the public sector.
9. Additional leaves on medical grounds are also provided for recovery under the maternity leave eligibility conditions.
10. Amenities like hygienic washrooms, comfortable seating, and safe drinking water must be available at the workplace.
i. (a) Every factory (as def. in factories Act). & (b) Every other establishment in which 20 or more persons (less than 20 but 10 or more it appropriate govt. notifies) are employed on any day subject to certain exemptions.
ii. Employees’ drawing remuneration of र 21,000/ or more and those who have worked for less than 30 days are not eligible to receive bonus under the Act. (Salary limit of र 3,500/- enhanced to र 10,000/- w.e.f. 1-4 2006 & further enhanced to र 21,000/- w.e.f. 1-4-2015)
iii. Bonus to be paid within eight months from the expiry of the accounting year
i. Every person (other than an apprentice) drawing salary up to र 21,000/- per month.
ii. Every person drawing salary not exceeding र 7,000/or minimum wage per month. He is entitled to get bonus on his entire salary or wage.
iii. Every person drawing salary or wage exceeding र 7,000/ or minimum wage whichever is higher, the bonus payable to him is to be calculated as if his salary or wage were र 7,000/- or minimum wage whichever is higher.
Salary or wages includes dearness allowance but no other allowances e.g. over time, house rent, incentive or commission
Imprisonment up to 6 month and or fine up to र 1000/-
i. Subject to other provisions.-Minimum bonus shall be 8.33% of salary/wages earned or र 100 whichever is higher
ii. If allocable surplus exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of Salary/Wages.
iii. Computation of bonus is to be worked out as per Schedule I to IV of the Act
iv. Payment of Bonus exceeding र 3,000/to be paid by cheque only in Maharashtra State
1. Calculate Gross Profit in the manner specified in: a. First Schedule, in case of a banking company, or b. Second Schedule, in any other case.
2. Calculate the Available Surplus:- Available Surplus = A + B, where: A = Gross Profit (-) Depreciation admissible u/s 32 of the Income Tax Act (-) Development rebate or investment allowance or development allowance (-) Direct Taxes Payable for the accounting year (calculated as per Sec. 7) (-) Sums specified in the Third schedule. B = Direct Taxes (Calculated as per Sec. 7) in respect of gross profits for the immediately preceding account year (-) Direct Taxes in respect of such gross profits as reduced by the amount of Bonus for the immediately preceding accounting year.
3. Calculate the Allocable Surplus: Allocable Surplus = 60%* of Available Surplus (67% in case of foreign companies).
4. Make adjustment for Set On and Set Off: For calculating the amount of bonus in respect of an accounting year, Allocable Surplus is computed after considering the amount of Set On and Set Off from the previous year. as illustrated in the Fourth Schedule
5. The Allocable Surplus so computed is distributed amongst the employees in proportion to salary or wages
