What is Employee State Insurance ESI?
Employee State Insurance Corporation (ESIC), also known as the Employee State Insurance Corporation, is a legally autonomous body that reports to the Indian Government’s Ministry of Labour and Employment. It manages the ESI scheme by the ESI Act of 1948. The ESI scheme was created to meet the health and insurance needs of the employees.
Eligibility Criteria
- All organisations are listed under the Shops and Establishments Act and the Factories Act
- Factories and other businesses must register with the ESI schemes if they have ten or more employees
- Employees earning wages not exceeding ₹21000/- per month will be covered to check the requirements of ESIC registration.
Benefits of the ESI Scheme
Registered employees and their dependents are guaranteed several benefits under the ESIC Scheme such as:
- Medical benefits: Reasonable medical care and clinical investigation for covered individuals and their families.
- Medical Care: Within ESI, medical facilities for the insured person and his spouse.
- Sickness Benefits: Increased and extended sick leave benefits.
- Disability benefits: For as long as the employee’s disability prevails, compensation is provided
- Dependent Benefits: The dependents of the insured individual who passes away as a result of a work injury receive a certain amount.
- Maternity benefits: For 26 weeks, maternity leaves are paid. In the event of a miscarriage, six weeks are granted.
- Funeral benefits: A one-time payment is provided for the insured person’s funeral.
- Unemployment Assistance under Rajiv Gandhi Sharmik Kalyan Yojana.
- Allowance for vocational rehabilitation.
Employee Provident Fund (EPF)
What is Employee Provident Fund (EPF) ?
The Employees’ Provident Fund and Miscellaneous Act of 1952 established the Employees’ Provident Fund (EPF), which is a savings scheme.
Government, employer, and employee representatives make up the central board of trustees, which is assisted by the Employees’ Provident Fund Organisation. The Ministry of Labour and Employment is responsible for managing EPFO, which operates directly under governmental control.
EPF, also known as PF in India, is a scheme that allows employees to set aside a percentage of their income for use after retirement or in case of necessity. Each month, a set amount is contributed to PF by both the business and the employees.
Eligibility Criteria
- Any factory or organisation with at least 20 employees must register with the EPF Scheme
- An organisation with fewer than 20 employees may voluntarily register
- All employees who get a monthly salary of less than ₹15,000 are obligated to deduct and deposit EPF,
- Employees of a company who have already registered for the EPF Scheme are automatically entitled to have their Provident Fund account opened as of the date of their hiring.
Benefits of PF
There are many benefits of registering for the EPF scheme such as
- The savings made in an EPF account can be withdrawn at any time for any reason, such as education, marriage, or a medical emergency, or it can be obtained after retirement
- The entire amount will be exempted from income tax if you remove the PF amount and interest at maturity or after 5 years of completion of continuous employment
- EPF accounts are now entirely created and maintained online, and employees can access their EPF funds from anywhere in the world using their UAN
- The nominee will get the employee’s PF balance and any interest that has accrued during that time in the event of their death.