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Applicability -
Benefits to Employer-
Employer gets tax benefits and relief from Non-compliance and other issues
relating to Workmens Compensation Act. He also becomes a good employer
covering workmen under Social Security Schemes.
Benefits to Employee
EPFO guarantees the Employer contribution and credits interest at such
rates as determined by the Central Government.
On resignation member can settle the account i.e., the member gets his PF
contribution, Employer Contribution and Interest.
Withdrawal Benefits
Member can withdraw from this accumulations to cater to financial exigencies in life - No
need to refund unless misused.
A member employee can also withdraw full amount standing to his credit. in fund On Resignation.
On Retirement from service on attaining the age of 55 yrs.
On Retirement on account for permanent or total incapacity to work.
On resignation, the member can settle the account. i.e., the member gets his PF
contribution, Employer Contribution and Interest.
If not eligible for pension, member may withdraw the amount accumulated in his
pension account
The calculation of this amount is based only on (i) Last average salary and (ii)
Service
Pension Benefits
1. Pension to Member
2. Pension to Family (on death of member)
3. Scheme Certificate
Death Case (Help to dependents)
1.
2.
3.
4.
Advance
Advance
Advance
Advance
for
for
for
for
5. Advance for
6. Advance for
7. Advance for
8. Advance for
9. Advance for
10. Advance for
Every employee is entitled to receive PF slips within six months of the end of the
financial year.
Now employee can get E-passbook which is like our Bank passbook contains
history of payments & Interest.
ExemptionExemption for those employers who providing better benefits than what is provided
under provisions of EPF & MP Act and scheme thereunder.
Penalties
For any retrospective application, all dues have to be paid by employer with
damages upto 100% of arrears.
Applicability
Section
2(9)
'employee'
under
ESI
means
any
person
who
is
In case the principal employer is covered under the Act the Contractors
would be automatically covered
As far as ESIC is concerned, there are certain areas where ESIC Act is
implemented and certain areas where it is not implemented due to lack
of infrastructure facilities.In such cases, we need to take Workmen
Compensation Policy
Where ESIC is applicable, we need to ensure that all workmen covered in
the Act are issued with ESIC cards by filing ESIC declaration forms. This
needs to be done within 10 days from the date of joining.
The benefit under the ESIC Act is also extended to families. All
employees who have remitted minimum 9 months contributions are
entitled for any type of surgeries and other medical benefits to any of
their dependant family members. In case the ESI hospitals are ill
equipped to perform the surgeries then the patient is recommended to
Private Hospitals.
ESIC deductions
Employees Contribution- 1.75%
Employers Contribution- 4.75%
Benefits to Employee
The ESIC deductions and payments have to be made on time and the last
date of payment is 21st of every month
Applicability
Benefits to Employee1) The quantum of gratuity is to be computed at the rate of 15 days wages (7
days wages in case of seasonal establishments) based on rate of wages last
drawn by the employee concerned for every completed year of service or a
part thereof exceeding 6 month.
2) The total amount of gratuity payable shall not exceed the prescribed limit.
3) In case where higher benefit is available under any gratuity Scheme of the
company, the employee will be entitled to higher benefit.
Exemption
For the purpose of exemption of gratuity under sec.10 (10) the employees are
divided under three categories:
1. Any death cum retirement gratuity received by Central and State Govt.
employees, Defense employees and employees in Local authority
shall be exempt.
Non-payment
of
Gratuity
payable
under
the
Act
is
punishable
with
Applicability
The Act is applicable to:
Every factory ,
Every other establishment in which 20 or more persons (less than 20
but 10 or more if appropriate govt. notifies ) are employed on any day
subject to certain exemptions.
Employees drawing remuneration of Rs 10,000/- or more and those
who have worked for less than 30days are not eligible to receive
bonus under the act.(salary limit of Rs 3,500/- enhanced to Rs
10,000/- w.e.f. 1-4-2006)
The Government can, however, apply the Act to any establishment employing less
than 20 but not less than 10 persons. In Maharashtra, act is applicable to
establishments employing 10 or more employees.
An establishment to which the Act applies shall continue to be governed by the Act
irrespective of any fall in the number of persons employed therein.
Benefits to Employee
ExemptionTrainee/Apprentice get stipend hence they are not entitled for Bonus.
Penal provisions
For contravention of the provisions of the Act or rules the penalty is imprisonment
up to 6 months or fine up to Rs.1000, or both.
For failure to comply with the directions or requisitions made the penalty is
imprisonment up to 6 months or fine up to Rs.1000, or both.
In case of offences by companies, firms, body corporate or association of
individuals, its director, partner or a principal officer responsible for the conduct of
its business, as the case may be, shall be deemed to be guilty of that offence and
punished accordingly, unless the person concerned proves that the offence was
committed without his knowledge or that he exercised all due diligence.
The Maharashtra Labour Welfare Fund Act, 1953 provides for the constitution of a
fund for the financing of activities to promote welfare of labour in the state of
Maharahstra.
Applicability
Any establishment which is covered under the Bombay Shops and Establishments
Act, 1948 or employs at least 5 employees is required to make bi-annual
contributions in the months of June and December every year to the Maharashtra
Labour Welfare Fund with respect to each of its employees including contract
laborers except those employed in managerial capacity or supervisory role drawing
monthly salary of more than Rs. 3,500/-.
Benefits to Employee
These funds are considered as fringe benefits since they are offered through
collective contribution which is supported by employee, employer who contributes
three-times of the amount contributed by the employee and the state government.
Applicability
wherein
persons
are
employed
for
the
exhibition
of
It also applies to every shop or establishment within the meaning of any law
for the time being in force in relation to shops and establishments in a
State, in which 10 or more persons are or were employed on any day of the
preceding 12 months;
Benefits to Employee
Even unmarried women can avail benefit As there is not given in Act, the
women should be married. So to protect her motherhood she should be
granted benefits.
If any employer contravenes the provisions of this Act or the rules made there
under he shall be punishable with imprisonment which may extend to one year or
with fine which may extend to five hundred rupees, or with both; and where the
contravention is of any provision regarding maternity benefit or regarding payment
of any other amount and such maternity benefit or amount has not already been
recovered, the court shall in addition recover such maternity benefit or amount as
if it were a fine, and pay the same to the person entitled thereto.
Applicability
Exemption Employee who is earning below Rs.5000/- or who is a senior citizen is exempted
from paying profession tax. And also i)
ii)
iii)
iv)
Are exempted
Default in payment of profession tax attracts for fines from an individual. The
severity of the penalty differs with the aim of a person to dodge PT.
Penalty
for
giving
"False
information
in
any
application"
for
Penalty
for
"Non-payment
or
late
payment
of
tax."
by
Interest on late payment of tax. -The interest for late payment of tax or
any additional demand of tax raised in assessment is 1.25% p.m. with effect
from 1-7-2004 (2% p.m. up to 30-6-2004.)
Interest on refund of excess payment of tax -If any refund is due from
any order in respect of period 1.4.2004 and onwards then interest on refund
@ 6% p.a. is receivable by such person entitled to refund, for maximum 18
months.
THANK YOU.