PF and ESI
veerareddy dondeti
(Querist) 16 June 2010
This query is : Resolved
Dear sir/Madam
I would like to know what are the duties and responsibilities has perform by an accountant in an organization.
What are the rates of PF
What is rate of ESI
When PF and ESI is Applicable
what the statutory obligations to be fulfill.
I am looking forward to the above information.
Please provide me with it.
Thanking you
yours faithfully
Raghava prasad
A V Vishal
(Expert) 16 June 2010
I would like to know what are the duties and responsibilities has perform by an accountant in an organization.
Ans. Duties and responsibilities are as per the terms of your employment.
What are the rates of PF
Ans.12% should be deducted from the employees salary and an eaqual amount should be contributed by the employer.
What is rate of ESI
Ans.E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
When PF and ESI is Applicable
Ans.COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole India except Jammu & Kashmir.
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
Employing 20 or more persons .
Cinema Theatres employing 5 or more persons.
The Act does not apply to:
The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)
The establishment to which this Act applies shall continue to be governed by this Act , even if the number of employees falls below 20 at a later date. [ 1(5)].
16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of 16(1) (b) contributory P.F. or old age pension as per rules framed by the Govt.
16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.
Voluntary Coverage : If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment ( voluntary coverage under section 1(4) )
what the statutory obligations to be fulfill.
Ans. This is too general a question, obligations differ from case to case.
