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B.M. Legal HR

Labour Law : Set-1

Provision of PF Act
• Applicability of EPF Act
The Employees' Provident Fund Act was started from the
year
1952, this act will be uniformly applicable throughout
India. Therefore, this act will be equally applicable in all the
states of India.
• To which factories or establishments the PF Act will
be applicable.
EPF Act shall apply to all factories, factories and
establishments where 20 or more than 20 employees are
employed.
In any factory, factory or establishment to which this Act
applies, if the number of persons employed at any time in
those factories or factory or establishment is less than 20,
then this Act shall apply to that establishment which is
already covered under this Act. come.
Who is called an employee under the PF Act?
Employee under this Act is a person who is either directly
employed under the employer or employed by a contractor
for the purpose of receiving wages or for doing work
connected therewith.

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• Applicability of PF Act on contract workers.

This Act shall also apply to all those employees who are
employed under a contractor for any work or any work
connected therewith for the purpose of receiving wages in
a factory, factory or establishment. will apply.
• Applicability of Provident Fund Act on trainee
undergoing training.
According to the provisions under the PF Act, if a trainee
has been engaged under the Apprenticeship Act in any
establishment or factory, then the PF Act will not apply to
that trainee.
If a trainee has been engaged under permanent orders in
an establishment or industrial factory, then the PF Act will
not apply to that trainee as well.
• PF Deduction wages
According to the provisions made under the Act, the
contribution will be deducted on the basic salary of the
employee, Dearness Allowance, apart from this other
allowances given to the employee will not be included in it.
Such as house allowance, education allowance,
transportation allowance or any kind of commission or
bonus amount given to the employees will not be included
in this.

• Whether EPF contribution will be deducted on overtime

payment.
According to the provisions made under this Act, the
contribution of PF will not be deducted even on the
amount paid to any employee in lieu of overtime.

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• What percentage of contribution is accumulated in .PF.

The total contribution of PF is 24%, in which 12% is
contributed by the employee and 12% is deposited by the
employer.
• Who is called an employee under the PF Act?
Employee under this Act is a person who is either directly
employed under the employer or employed by a contractor
for the purpose of receiving wages or for doing work
connected therewith.
When an establishment has more than one branch and
department.
• If an establishment has more than one branch or different
departments as per the provisions made under section 3 of
the PF Act. and a department or branch of that
establishment is situated at more than one place.

• So in such a situation, those branches and departments of

that establishment will be considered as part of the
establishment only.
Employees Provident Fund Scheme
• Under Section 5 of the PF Act, a provision has been made
for the Employees Provident Fund Scheme.

• The Employees' Provident Fund Scheme was started by the

Central Government by issuing a notification in the Gazette.
We will know in detail further what are the provisions
made under the Employees Provident Fund Scheme.

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Contribution to Employees' Provident Fund.

• Under the Employees' Provident Fund Act, provisions have
been made in Section 6 regarding the contribution to be
deposited in the Employees' Provident Fund. According to
the provisions made under this section of the Act, any
establishment or function under that Act is applicable.
Monthly contribution of 12% will be made on behalf of the
employees and 12% contribution will be deposited in the
provident fund account of the employee by the employer
of the same establishment.
Employees Pension Scheme.
• According to the provisions made under the PF Act,
provision has been made for Section 6A Employees Pension
Scheme.

• The provision of Employees Pension Scheme was made by

the Central Government by issuing a notification in the
Gazette.

• Under the Employees' Pension Scheme, a provision has

been made to provide pension benefits of superannuation,
retirement pension benefits or temporary total disability
pension benefits to the employees.

• Under the Employees' Pension Scheme, a provision has

been made to provide pension benefits to the employees'
beneficiaries, in which provision has been made for widow
pension and children's pension.

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Provision for Employees Deposit Link Insurance Scheme.

• Under Section 6C of the PF Act, a provision has been made
for the Employees Deposit Link Insurance Scheme. The
Employee Deposit Link Insurance Scheme has been started
by the Central Government by issuing a notification in the
Gazette. Any establishment to which this Act applies shall
be given the benefit of Employee Deposit Link Insurance
Scheme to the employees working in the establishment.

Determination of the Due amount to the

employer
• If the contribution of PF is not deposited by an employer or
if any amount is due to the employer, then under Section
7a of the PF Act, a provision has been made to determine
the amount due to the employer.

• The provisions made under this section of the PF Act, the

Central Provident Fund Commissioner, Central Provident
Fund Additional Commissioner, Central Provident Fund
Deputy Commissioner or Regional Central Provident Fund
Commissioner have the right to investigate in the following
cases, if necessary.

• If there is any matter or dispute as to whether the PF Act

will or will not apply to the establishment. Such dispute will
be investigated

• If the contribution is not deposited by the employer under

the PF scheme, then such case will be investigated and the
balance amount will be determined.

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• If the contribution is not deposited by the employer under

the Employees Pension Scheme, then such case will be
investigated and the due amount will be determined.

• If the amount of contribution to be made under Employee

Deposit Link Insurance is not deposited by the employer,
then such cases will be investigated and the due amount
will be determined on behalf of the employer.
Powers of the Inquiry Officer to inquire into the amount due by
the employer.
• According to the provisions made under the PF Act, the
officer who investigates and determines the amount due to
the employer has the following powers.

• The officer conducting the inquiry may call upon the

employer or any employee or any other person to be
present for the inquiry.

• The inquiring officer may examine the employer or any

employee or any other person on his affidavit.

• The inquiring officer may require the production of

documents relating to the case.

• The inquiring officer may, while inquiring into the case, take
evidence on affidavits of witnesses relating to that case.

• The Inquiry Officer may issue commissions to witnesses

relating to the case for taking evidence on affidavit.

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• If the employer or an employee or any other person, after

being called upon by the officer holding the inquiry to
attend the inquiry, fails to appear before the inquiring
officer.

• If the employer or any employee or any other person fails

to appear and produce the documents relating to the
matter.

• If he fails to furnish any report or return relating to that

matter.

• In such a situation, the investigating officer can give a

decision about the applicability of this Act on the basis of
available documents and evidence or can determine the
amount due in case of dues on the employer.
Provision for setting aside ex parte order against the employer.
• As per the provisions made under section 2(4) under the PF
Act, if the matter relating to the Applicability of this Act or
the matter relating to the determination of the amount due
to the employer

• If an ex-parte order has been passed by the Inquiry Officer,

then in such a situation the following provision is there to
set aside the ex-parte order made by the Inquiry Officer.

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If an ex parte order has been passed against the employer by

the inquiry officer.
• An application can be made by the employer before the
same Inquiry Officer to set aside the order within a period
of 3 months from the date of making the order.

• To set aside the ex-parte order, the employer will have to

apply within 3 months from the date of the order to the
same officer by whom the ex-parte decision has been
passed.

• If the Inquiry Officer is satisfied that the show cause notice

sent to the employer has not been served, the Inquiry
Officer may pass an order setting aside the order ex parte.

• If the Inquiry Officer is satisfied that the employer could

not be present at the time of inquiry for any sufficient
reason, the Inquiry Officer may order to set aside the ex
parte order.

• If the ex parte order passed by the Inquiry Officer against

the employer is set aside, then a new date will be fixed for
the proceedings of the inquiry by the Inquiry Officer.
Appeal against the decision of the Inquiry Officer.
• As per the provisions made under the PF Act, the employer
can appeal to the PF Tribunal against the decision of the
investigating officer of the matter relating to the
application of the Act to any establishment or the arrears
of PF contribution by the employer. .

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Right of the appellate employer to take the assistance of legal

profession.
• When an appeal is made by a person to the PF Tribunal in
a case, then that person himself can appear before the
Tribunal, apart from this, if that person wants, he can take
the help of legal profession in that case.
Order made by the Tribunal.
• Under the PF Act, in Section 7L, provisions have been made
in relation to the order given by the PF, which is as follows

• The Tribunal shall, before making an order in the appeal,

give a reasonable opportunity of being heard to the rights
concerned in the matter during the hearing of the matter.

• After giving a reasonable opportunity of being heard to the

parties to the case, the Tribunal may, if it thinks fit, pass a
fresh order modifying or altering the order appealed
against in the Tribunal.

• The Tribunal may, if it thinks fit, return the order to the

Inquiry Officer with directions.

• may, after taking additional evidence in that case, return

that order to the re-inquiring authority for deciding the
case afresh.

• If any mistake is made during the hearing of the case by the

Tribunal, then in such a situation, the Tribunal can modify

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the order given by it within 5 years from the date of making

the order.

• As per the provisions made under the PF Act, if the Tribunal

hears the appeal of any case and passes an order in that
case, a copy of that order shall be supplied by the Tribunal
to the parties to the appeal.

• If an appeal is made to the PF Tribunal against the decision

given by the Inquiry Officer and the order passed by the PF
Tribunal on that appeal, that order cannot be questioned
in any court.

• As per the provisions made under the PF Act, if the Tribunal

hears the appeal of any case and passes an order in that
case, a copy of that order shall be supplied by the Tribunal
to the parties to the appeal.

• If an appeal is made to the PF Tribunal against the decision

given by the Inquiry Officer and the order passed by the PF
Tribunal on that appeal, that order cannot be questioned
in any court.
Provision regarding deposit of amount on appeal against
the decision given by the inquiry officer.
• According to the provisions made under the section of this
act, if the case related to the arrears of PF contribution is
appealed by the employer against the decision given by the
investigation officer, then it will be sent to the employer by
the tribunal. The appeal made to the CBI will be accepted
only if the employer does deposit 75% of the dues as

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determined by the Inquiry Officer. The appeal made on

behalf of the employer will be accepted by the Tribunal
only after the employer has deposited 75 percent amount
of dues as determined by the Inquiry Officer.

• The Tribunal may, if it thinks fit for sufficient reasons,

reduce or waive 75 per cent of the amount to be deposited
by the employer.
Provision regarding interest on outstanding amount
• In case of arrears of PF contribution, from the date on
which the arrears are determined on the employer after
the investigation of the case by the Inquiry Officer to the
date on which the arrears are actually paid by the employer
Till then, interest will be given on the outstanding amount
at the rate of 12% per annum or interest will be charged at
the rate which has been fixed under the PF scheme.

Provisions for Recovery of Due Amount

Section 8

In Section 8 of the PF Act, a provision has been made for

recovery of dues from the employer.
• According to the provisions made under the PF Act, if
any employer's contribution to PF scheme, pension
scheme contribution or Employee Deposit Link
Insurance Scheme contribution is outstanding.
• or any other dues under the PF Act
• If the employee leaves the job and after leaving the
job, if the amount of PF scheme or pension scheme

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deposited by the employer in the employee's PF

account is not transferred to the employee's account.

Who can recover the dues from the employer?

• In such case the amount due to the employer may be
recovered by the Central Provident Fund
Commissioner or by such officer as may be notified
by the Central Provident Fund Commissioner. Can
recover the amount due from the employer.

Procedure for recovery of dues from the employer.

• According to the provisions made under the PF Act, if
any amount is due to the employer, then the same
procedure will be adopted for the recovery of that
due amount, which is adopted for the recovery of
land revenue.

Recovery of money by the employer and the contractor

Section 8B
• According to the provisions made under the PF Act, if
the contribution of the employees employed under
the contractor, be it pension scheme contribution or
PF skin contribution or insurance amount, if it is done
by the employer, then the employer will recover this
amount from the contractor. Can do.

• According to the provisions made under the PF Act,

the amount of contribution deposited by the
employee in the PF account of the employee
employed by any contractor shall be deducted from

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the basic salary, dearness allowance received by the

employee and given to him. If there is any other
retention allowance, then he can recover it by
deducting it.

• According to the provisions made under the PF Act, a

contractor cannot recover the amount of
contribution deposited by the employer in the PF
account of the employees employed by him by
deducting that amount from the basic salary and
dearness allowance of the employee.

Issuance of certificate for recovery of dues to the

Recovery Officer.
Under Section 8 of the PF Act, if there is any outstanding
amount on an employer, a letter is issued by the authorized
officer to the recovery officer with his signature to recover
the due amount.

In this certificate, the details of the amount owed to the

employer are given.
• The following action may be taken by the Recovery
Officer to recover from the employer or
establishment shown in the certificate.

• Action can be taken by the officer to attach the

movable property of the establishment or the
employer or to recover the dues by selling the
movable property of the employer.

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• The Recovery Officer can arrest the employer and

detain him in prison to recover the dues.

• Recovery Officer The employer may appoint a

receiver to manage the movable properties of the
employer's settlement to recover such dues.

• The Recovery Officer shall first proceed to attachment

or sale against the properties of the establishment or
the company to recover the dues from the employer
or the establishment.

• If even after attachment or sale of the assets of the

establishment or the company, the full amount due is
not recovered, in such a situation, the recovery officer
may file an attachment or attachment against the
property of the employer to recover the balance
amount or any part of the due amount. will proceed
to sell

To which Recovery Officer the certificate will be sent

Section 8C
• According to the provisions made under Section 8C of
the PF Act, the Authorized Officer will send a
certificate to the following Recovery Officer to
recover the dues of the employer. The recovery
officer will be issued a certificate to make the
recovery.

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• The Recovery Officer within whose jurisdiction the

employer carries on his business or profession or the
Recovery Officer within whose jurisdiction the
principal office of the employer's business or
profession or establishment is situated. The recovery
officer will be issued a certificate to make the
recovery.

• Certificate for recovery shall be issued to the officer

in whose jurisdiction the employer resides or to the
recovery officer in whose jurisdiction any property of
that employer is situated.

• If the property of the establishment or the employer

is situated in the jurisdiction of more than one
Recovery Officers As per the provisions made under
the Act, if the property of the establishment or the
employer is situated in the jurisdiction of more than
1 Recovery Officers,

• Then the Recovery Officer to whom the certificate for

recovery of arrears has been sent will take action for
recovery by adopting the following procedure.

• The recovery officer will send a certificate to recover

the outstanding amount to the recovery officer on
whose jurisdiction the property of the establishment
or employment of the recovery officer is located. The
details of the amount to be recovered by the officer
will be given in the certificate.

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• Recovery action will be taken by the recovery officer

assuming that the recovery certificate has been sent
to him by the authorized officer.

Validity of Certificate Section 8D.

• According to the provisions made under the PF Act,
whenever a certificate is issued to the recovery
officer by the authorized officer for recovery of dues
against any establishment or employer, then in such
a situation the amount to be recovered shown in the
certificate No similar question can be raised before
the Recovery Officer as to whether the amount is
correct or incorrect.

• If the employer puts any question at the time of the

Recovery Officer in respect of the certificate issued by
him for recovery or in respect of any other matter
relating to the certificate, the recovery officer shall
will not be accepted.

• As per the provisions made under the Act, whenever

a certificate is issued for recovery of dues against any
establishment or employer, the authorized officer has
the power to withdraw the certificate of recovery
issued by him. Could

• And if it appears to the authorized officer issuing the

certificate that there is any mistake in any information
contained in the certificate or in the calculation of the
amount to be recovered, the authorized officer shall

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have the power to Can ask the information recovery

officer to rectify the mistake.

• If the certificate issued against the establishment or

the employer by the authorized officer is canceled
from your back or if any kind of correction or
amendment is made in it, then it will be informed
through the notification.

Amendment provision for amendment or correction in

the certificate issued for recovery

Under Section 8DD of the PF Act, provisions have been

made to amend the certificate issued for recovery.

• As per the provisions made under the Act, if a

certificate has been issued for the recovery of dues
against any establishment or employment and time
has been sought by the music company for payment
of the dues, the authorized officer has the right to Can
approve the time sought by the employer to deposit
the amount of recovery.

• After approving the time sought by the authorized

officer for depositing the amount, the recovery
officer will also not take any action regarding the
recovery of the outstanding amount after the expiry
of the sanctioned time.

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• After issuing the certificate by the authorized officer,

if the time demanded by the employer is accepted,
then all the officials will inform about it to the
recovery officer

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Provision regarding not deduct wages of the employee by the

Employer. Section 12
According to the provisions made under Section 12 of the PF Act,
if this Act applies to any establishment, then it is the responsibility
of the employer of that establishment to

• He should deposit the contribution made under Employees

Provident Fund Scheme, Employees Pension Scheme and
Employee Deposit Link Insurance Scheme for the employees
working in his establishment in the PF account of the employee.

• The amount of PF contribution made by the employer cannot be

reduced by the employer from the wages or salary of the
employee.

• The employer cannot make any reduction in the wages or salary

of the employee in lieu of the contribution made to the
Employees' Provident Fund Scheme, Employees' Pension Scheme
and Employees' Deposit Insurance Scheme.

Provision regarding appointment of Inspector.

• According to the provisions made under Section 13 of the PF Act,
the appropriate government may, by notification in the Gazette,
appoint such persons as it deems fit to be Inspectors for the PF
Act, Employees Provident Fund Scheme, Employees Pension
Scheme and Employees Deposit Link Insurance Scheme.

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• It will be the responsibility of the Inspector to check whether the

information given in the establishment under the Employees
Provident Fund Scheme, Employees Pension Scheme and
Employee Deposit Link Insurance Scheme under the PF Act is
correct or not.

• The inspector will also check whether the Employees' Provident

Fund Scheme, Employees' Pension Scheme and Employee Deposit
Link Scheme under the PF Act have been implemented in the
establishment or not.

• The Inspector will have the right to obtain information from the
employer and the contractor regarding the amount owed by him
in connection with the recovery of dues on him under the PF Act.

• The Inspector shall have the right to enter and search the
establishment at any reasonable time.

• The Inspector has the right to demand from the person having
super vision in the establishment, information about the
employees working in the establishment, information about the
wages of the employees working in the establishment and any
other necessary accounting details, registers and documents. can
demand

• The Inspector shall have the right to examine the manager or

supervisor or any other employee in the establishment, if any
amount is due under the Act on the employer or contractor and
that amount is to be recovered under the Act.

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• If the Inspector is convinced that any offense under this Act has
been committed by the employer or the contractor, he can obtain
a copy of the register, documents available in the establishment
and kept in the establishment.

• Along with this, registers, documents or any other type of books

of accounts kept in the establishment can be acquired and taken
with them

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Employee Provident Fund

Scheme 1952
Provisions For PF contribution.

Contribution amount
• According to the provisions made under Section 29 of the PF
scheme, 12% of his monthly basic salary, dearness allowance and
retention allowance is paid by the employee as PAF contribution
and the same amount is paid by the employee towards PF. made
as a contribution.

• According to the provisions made under the PF scheme, the

amount of contribution to be made by the employee and the
amount of contribution to be made by the employer under the PF
scheme will be equal. The contribution to be made by the
employee and the employer will be equal.

• If the employee wants to make PF contribution of more than 12%

of the amount of monthly basic salary, dearness allowance,
retention allowance received by him, then the employee can
contribute more than 12% of the amount as PF contribution. But
in such a situation it will not be necessary to contribute more than
12% PF by the employer. The PF contribution to be made by the

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employer will remain at 12% only. If such an employee wishes, he

pays an amount exceeding 12% monthly as PF contribution.

• The amount of contribution will be calculated on the monthly

basic salary, dearness allowance retention allowance received by
the employee, under this, even if the employee receives food
concession in cash in any way, it will also be included in it.

• PF contribution by every employer or establishment will be

calculated in rupees, if the amount of PF contribution comes to 50
paise or more than 50 paise while calculating the contribution, it
will be calculated in rupees. For example, if the amount of PF
contribution comes to ₹ 860 and 75 paise, then it will be calculated
as ₹ 861 and if the PF contribution amount comes to ₹ 860 40
paise, then it will be calculated as ₹ 860.
Provisions relating to payment of contribution.
• Under Section 30 of the PF Scheme 1952, provisions have been
made regarding the payment of the amount of PF contribution.

• As per the provisions made under the PF scheme, it is the duty of

every employer to pay the PF contribution on behalf of the
employer to the member employee who is employed under him
directly or through a contractor and towards the employee. Pay
the amount of contribution to be made from employer

• According to the provisions made under this section of the PF

scheme, if the member employee is employed by or through a
contractor, the PF contribution to be made by the contractor on
behalf of that member employee shall be recovered and The
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amount will be paid by the contractor to the Principal Employer.

Along with this, the amount of contribution to be made by the
contractor will also be paid to the principal employer, along with
this he will also pay the administration charges on PF also..

• In accordance with the provisions made under this section, it shall

be the responsibility of the principal employer to pay the amount
of PF contribution to be made on behalf of the member employee
and the employer for the member employee who is employed
directly under him or through an contractor under him. Along with
this, the amount of contribution to be paid on behalf of the PF will
also be responsible for depositing the administrative charges on
the amount of contribution.

Provisions for delay in depositing monthly

contribution.
• Under Section 32A of the PF Scheme 1952, provisions have been
made regarding the penalty for delay in depositing the amount of
monthly PF contribution by the employer.

• Under this section of the PF scheme, if there is a delay in paying

the amount of monthly contribution fixed by the employer from
the prescribed time, then in this section of the act provisions have
been made for the penalty on the employer.

• If there is a delay in depositing the amount of PF contribution by

the employer, then the Central PF Commissioner will have the

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right to impose penalty on the employer for delay in depositing

the amount of PF contribution.

In case of delay in depositing the amount of PF contribution, the

amount of penalty can be recovered from the employer at the
following rates.

• If there is a delay of less than 2 months in depositing the PF

contribution, a penalty of 5% per annum will be charged.

• If there is a delay in depositing the amount of PF contribution for

less than 4 months, then a penalty at the rate of 10 percent per
annum will be charged on it.

• If there is a delay in depositing the amount of PF contribution for

more than 4 months and less than 6 months, then penalty will be
charged at the rate of 15% per annum.

• If there is any delay in depositing the amount of PF contribution,

then penalty will be charged at the rate of 20% per annum.

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Employer's liability for Contribution

• Under section 36 of the PF scheme, provisions have been made

regarding the duty of the employer with regard to PF contribution.
which is as follows

• It will be the duty of every employer to deposit the monthly

contribution amount of the PF scheme with the monthly return in
the office of the concerned PF commissioner within a period of 15
days after the end of the month. The amount of monthly contribution
and return of each month has to be submitted to the concerned PF
commissioner before 15th of the next month.

• According to the provisions made under the PF scheme, it is the

responsibility of every employer to submit the monthly return of PF
contribution to the concerned PF Commissioner by the 25th of the
next month after the end of the month.

• If no employee's PF contribution has been made under the PF

scheme in a month, then the monthly return of Nil can be submitted
by the employer.

• It is the responsibility of the employer to submit the annual return

of PF contribution to the PF Commissioner within one month after
the end of each year. The employer has to submit this annual return
in the format of Form No. 6A. The annual return of PF contribution is
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filed for the period from 1st April to 30th March of the next year and
this annual return has to be submitted by 30th of April.

• For example, if the amount of PF contribution for the month of

January and PF return for the month of January has to be submitted
by 15th of February.

• If there is no such employee in a month who comes under the EPF

scheme, then in such a situation the return submitted by the
employee will be a Nil return.

• It is the responsibility of every employer that every month's partial

return will be presented by the employer before the concerned PF
commissioner in the format of Form No.12A given under this act.

• Form number 5 gives information about those employees who

become members of the PF scheme for the first time in that month.

• The declaration form of those employees who are filled in the

format of Form No. 2 will also be enclosed and presented by the
employer before the PF Commissioner.

• The form will also give information about the names of the
member employees who have left the job during that month. If there
is no employee in that month who has become a member of PF
scheme for the first time and there is no such member who has left
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the job, then the return of nil for that month will be presented by the
employer to the PF Commissioner. .

• It is the responsibility of every employer to keep an inspection

book in his establishment, in that inspection book, whenever the
establishment is inspected by the PF Inspector, a record of the
observations made by the Inspector will be written in that inspection
book.

• It is the responsibility of every employer to keep accounts of the

PF contribution deposited on behalf of the employee and the
amount of PF contribution deposited on behalf of the employer as
per the instructions given by the Central Board.

• It is the responsibility of every employer to follow the guidelines

given by the Central Board for the implementation of the PF scheme.

• According to the provisions made under the PF scheme, it is the

responsibility of every employer to submit the return of the amount
of PF contribution electronically to the PF Commissioner.

• Submit this return according to the form and procedure

prescribed by the PF Commissioner.

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Provisions relating to information relating to ownership of

company or establishment

• Under Section 36A of the PF scheme, provisions have been made

regarding providing information related to the ownership of his
company or establishment by the employer.

• According to the provisions made under this section, it is the

responsibility of every employer to submit the ownership
information of his factory or establishment which comes under the
PF Act to the concerned Regional PF Commissioner in the format of
Form No. 5A.

• Under this, information about all the branches and departments

of the company or establishment will be given by the employer.

• Information shall be given of the owners, directors, managers of

the company and establishment and any person who has control
over the affairs of the company or establishment.
Provisions relating to duty of the contractor in respect of
contribution.
Under PF Scheme 1952, provision has been made in section 36b of
what are the duties of the contractor in relaution to the deposit of
PF contribution.

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• According to the provisions made under the section, it is the duty

of every contractor to submit the statement of the amount of
monthly PF contribution to be deposited on behalf of the employees
working under him and on behalf of the contractor to the principal
employer.

• This statement of the amount of PF contribution should be

submitted by the contractor to the principal employer within the
next 7 days after the end of each month.

• It is the duty of the contractor to provide all the necessary

information to the Principal Employer which is sought from the
Principal Employer by the PF Commissioner under the PF Scheme.
Provision regarding the mode in which the amount of PF
contribution will be deposited
• Under Section 38 of the PF Scheme 1952, provisions have been
made regarding the mode in which the amount of PF contribution
will be deposited.

• According to this section, the monthly contribution to be made by

the employer on behalf of the employee and the amount of monthly
contribution to be made by the employer has to be deposited within
15 days after the end of each month.

• The amount of the contribution can be deposited electronically by

the employer through net banking, in the State Bank of India or in

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any nationalized bank or in any listed bank or private sector bank

which has been authorized.

Provisions For Nomination

under the PF Act.
Under Clause 61 of the PF Scheme 1952, provisions have been made
regarding nomination of his nominee by the member employee.
• Filling nomination form
According to the provisions made under the PF Act, it
mandatory for every member employee to declare nomination. The
nomination is declared by the employee under in No. 2.
In the event of the death of the member employee, the persons
nominate by the member employee in the nomination will have
the right to receive the amount deposited in the member
employee's PF account.
Nomination of one or more persons
According to the provisions made under the Act, the member
employee can distribute the amount deposited in his PF account
among his nominees in his discretion.
If the member employee has a family at the time of nomination,
the member employee can nominate one or more members of his
family.

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If a person who is not a member of his family is nominated by the

member employee, then that nomination will be considered
invalid.
Nomination after marriage
If the member employee is unmarried, a new nomination form
will be given by the employee after the marriage.
Nomination after becoming a family
If the member employee does not have any family when the
nomination form is filled by the member employee and any
person is made a nominee by the member employee, then after
the formation of the family, this nomination will be considered
invalid and after the formation of the family, the member A new
nomination form will be filled by the employee in which he can
nominate one or more members of his family.

Nomination of minor
If a minor is made a nominee by the member employee, then
mejor person the family can be appointed guardian of that minor.
If there is no major person in the family, then in such a situation,
any other person can be appointed as the guardian of that minor
by the member employee at his discretion.
Change in nomination
According to the provisions made under this scheme, the

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member employee can change the nomination given by him at any

time. There shall be a notice to that effect to the member
employee making the change.
If any change is made by the member employee in the nomination form
given by him, then the change made by him will be considered effective
from the day the nomination is received by the concerned PF
Commissioner.
Provision regarding payment of premium for policy of Life Insurance
Corporation.
• Under the PF scheme, provisions have been made in Section 62
regarding the payment of premium for the Life Insurance
Corporation policy of the member employee.
• If the Life Insurance Corporation policy is taken by the member
employee for his own life.
• If the member employee wants that the outstanding premium of
his Life Insurance Corporation policy be paid out of the amount
deposited in his PF account, then in such a situation the member
employee will have to apply to the PF Commissioner.
• After receiving the application made by the PF Commissioner
Member Employee, the PF Commissioner will pay the amount of
the premium of the Life Insurance Corporation policy to the Life
Insurance Corporation from the amount deposited in the PF
account of the employee.

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Provision regarding
withdrawal of advance
amount from PF account
PF scheme member employee can withdraw the amount deposited in
his PF account on the following grounds.
• For the purchase or construction of a house or residential house.
• To pay off the loan.
• In case of lockout or closure of the factory or establishment, the
employee can withdraw the advance from his PM account.
• Advance amount can be withdrawn from the PF account of the
member employee in case of illness of the member of the PF
scheme or member's family member.
• An advance can be withdrawn from the PF account of the PF
employee for his own marriage or for the marriage of his son or
daughter or for the marriage of his brother and sister who is a
member of the PF scheme.
• Advance amount can be withdrawn from the amount deposited in
PF for the post-matriculation education of the daughter or son of
the member employee of PF scheme.
• If the movable and immovable property of the member employee
of the PF scheme is damaged in any natural calamity, then in such
a situation advance amount can be withdrawn from the amount
deposited in his PF account by the employee of the PF scheme.

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Provision regarding withdrawal of advance amount for purchase of

house or construction of house Section 60B
• If an employee is a member of the PF scheme, he can withdraw
the amount deposited in his PF account for the purchase of a
house and for the construction of a house.
• An amount equal to the amount of 24 months basic salary and
dearness allowance of the employee from the PF account by the
member employee.
Or
• An amount equal to the amount of employee's contribution and
employer's contribution plus interest deposited in his PF account
Or
• An amount equal to the cost of the house he is buying or a plot for
building a house.
• Whichever amount is less than the amount given above, the
member employee can withdraw the same amount as advance
amount which was in his PF account.

The following conditions are necessary in relation to the withdrawal

of advance amount for the house from the PF account.
• Membership of 5 years is necessary under the PF scheme by the
member employee. At least 5 years' contribution must be
deposited in the PF account of the member employee.
• The amount of contribution deposited in the employee's PF
account must be at least Rs 1000 including interest. PF
contribution amount in the employee's PF account is less than Rs

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1000, in such a situation advance amount cannot be withdrawn by

the member employee.
Section 60BB of the PF scheme, provision regarding withdrawal of
amount from PF account to pay the loan
• If any loan has been taken by the member employee and the
member employee can withdraw the advance amount from the
balance in his PF account to repay the entire loan amount or part
of the loan
• An application is made by the employee before the concerned PF
commissioner or any other authorized officer to withdraw the
advance amount.
In such a situation, the following provisions have been made to
withdraw funds from the PF account.
• The amount of basic salary and dearness allowance received by
the employee for 36 months from the PF account will not exceed.
• The amount of advance shall not exceed the employee's
contribution and employer's contribution including interest
deposited in the employee's PF account.
• Whichever amount is less than the amount given above, that
amount can be withdrawn from the PF account.
The following conditions are necessary in respect of the amount to be
withdrawn by the employee to repay the loan.
• The membership of the PF scheme by the employee must be 10
years. The member can withdraw the amount from the PF
account to repay the loan amount only after 10 years'
contribution has been deposited in the employee's PF account.
• The amount of contribution deposited in the employee's PF
account must be at least Rs 1000 including interest. If the PF
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contribution amount including interest in the employee's PF

account is less than Rs 1000, then in such a situation advance
amount cannot be withdrawn by the member employee.
Section 60BB of the PF scheme, provision regarding withdrawal of
amount from PF account to pay the loan
• If any loan has been taken by the member employee and the
member employee can withdraw the advance amount from the
balance in his PF account to repay the entire loan amount or part
of the loan
• An application is made by the employee before the concerned PF
commissioner or any other authorized officer to withdraw the
advance amount.
• In such a situation, the following provisions have been made to
withdraw funds from the PF account.
• The advance amount to be withdrawn from the PF account will
not exceed the amount of basic salary and dearness allowance
received by the employee for 36 months.
• The amount of advance shall not exceed the employee's
contribution and employer's contribution including interest
deposited in the employee's PF account.
• Whichever amount is less than the amount given above, that
amount can be withdrawn from the PF account.

The following conditions are necessary in respect of the amount to be

withdrawn by the employee to repay the loan.
• The membership of the PF scheme by the employee must be 10
years. The member can withdraw the amount from the PF account
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to repay the loan amount only after 10 years' contribution has

been deposited in the employee's PF account.

• The amount of contribution deposited in the employee's PF

account must be at least Rs 1000 including interest. If the PF
contribution amount including interest in the employee's PF
account is less than Rs 1000, then in such a situation advance
amount cannot be withdrawn by the member employee.

Provision regarding withdrawal of amount from PF account on closure

of factory or establishment.
• If any establishment or factory is closed or locked out for more
than 15 days and due to this the workers have become
unemployed and have not been given any allowance of any kind.
So in such a situation, provisions have been made regarding the
withdrawal of funds from the PF account of the member
employees. This provision has been made in section 68H of the PF
scheme.

Provision regarding withdrawal of amount from PF account for illness.

• According to the provision made under Section 68 of the PF
scheme, the amount can be withdrawn for illness from the
amount deposited in the account by the member employee.
• If a member of the PF scheme, an employee or a member of his
family is suffering from a serious illness for 1 month or more than
1 month, then he can withdraw money from his PF account. This
amount will be non-refundable.

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• If the member employee of the PF scheme or any member of the

family of the member employee is admitted to a hospital for 1
month or more than 1 month or needs to be admitted to a hospital
• So the member employee of PF scheme can withdraw advance
amount from the amount deposited in his PF account. This
amount will be non-refundable.
• The amount to be withdrawn from the account for illness will not
exceed 6 months' basic salary and dearness allowance of the
employee.
Or
• The amount of contribution deposited on behalf of the employee
in the employee's PF account, along with the interest, can be
withdrawn.
• Whichever amount is less than the amount given above can be
withdrawn.
Provision regarding withdrawal of deposit in PF account for
marriage.68K
• An advance can be withdrawn by an employee member of PF
scheme for his own marriage or marriage of his daughter or his
son or marriage of his sister or his brother or post matriculation
education of his son or daughter from the amount deposited in his
PF account. The amount will be non-refundable.
• Amount to be withdrawn Up to 50% of the amount of contribution
deposited by the employee in the PF account of the employee,
including interest, can be withdrawn.
• To withdraw this amount by the employee, it is mandatory for the
employee to have less than 7 years of membership in the PF
scheme.

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• The amount of PF contribution deposited on behalf of the

employee in the employee's PF account must be at least Rs 1000
including interest. If the amount of contribution deposited in the
PF account is less than Rs 1000, then the amount cannot be
withdrawn from the PF account Can

• Advance amount cannot be withdrawn by the employee for

marriage or for post matriculation education of his son or
daughter for more than 3 times.
Provision regarding withdrawal of advance amount under certain
circumstances.
• According to the provisions made under Section 68L of the PF
scheme, if any movable or immovable property of the member of
the PF scheme is damaged due to any natural calamity, then in
such a situation, the amount deposited by the employee in his PF
account is withdrawn in advance. This amount will be non-
refundable.
For this the following condition is necessary.
• The natural calamity due to which the movable or immovable
property of the member employee has been damaged, it will be
necessary to declare it as a natural calamity by the State
Government.
• It will be necessary for the member employee to submit a
certificate issued by the competent authority regarding damage
to his movable or immovable property due to natural calamity.
• The member employee will have to apply within 4 months of the
state government declaring the calamity as a natural calamity.

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• The amount to be withdrawn by the member employee shall not

exceed his 3 months basic salary and dearness allowance
• Or the contribution deposited by the employee himself in his PF
account shall not exceed an amount equal to 75 per cent of the
amount together with interest.
• Whichever amount is less than the amount given above can be
withdrawn by him.

Provision regarding withdrawal of advance amount on disconnection

of electricity connection.
• According to the provisions made under the PF scheme, if the
power supply to a factory or establishment is cut off, then in such
a situation the member employee of the PF scheme can withdraw
the advance amount from the amount deposited in his PF account,
this amount will be non-refundable. Its provision has been made
under section 68M of the PF scheme.
• Provision regarding withdrawal of advance amount from PF
account by physically challenged employees.
• According to the provisions made under section 68N of the PF
scheme, if a member employee is physically disabled. If the
employee wants to buy any equipment that can reduce the effect
of his physical disability, then in such a situation the member
employee can withdraw the advance amount from his PF account.
• For this the member employee will have to submit a self
declaration affidavit.
• The amount of advance withdrawn by the employee shall not
exceed the amount of 6 months' basic salary and dearness
allowance received by me.

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Or
• Member PF contribution made by the employee on his own behalf
to the employee's PF account including interest shall not exceed
the amount of
• Whichever amount is less than the amount given above, that
amount can be withdrawn from the employee's PF account.
• Advance amount can be withdrawn only once in 3 years from the
amount deposited in this account by the physically handicapped
employee.
Provision regarding withdrawal of advance amount from PF account
before 1 year of retirement.
• According to the provisions made under the PF scheme, if a
member employee wants to withdraw an advance from the
amount deposited in his PF account before one year on his
retirement, he can withdraw the advance amount. Its provision
has been made in section 68NN of the EPF scheme.
• For this, the employee will have to apply to the PF commissioner
or any other authorized officer to withdraw the advance amount.
• Member employee can withdraw 90% of the amount deposited in
his PF account as advance amount 1 year before his retirement.
• The member employee can apply for withdrawal of advance
anytime within 1 year before retirement preferably after attaining
the age of 54 years.

Provision for payment of advance amount to be withdrawn from PF

account.
• According to the provisions made under Section 68O of the PF
scheme, if the member employee of the PF scheme wants to
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withdraw the advance amount in his PF account, then the advance

amount to be withdrawn will be paid in the following manner.
• Payment will be made to the member employee by postal order.
• The member will be deposited in the employee's bank account.
• or shall be paid by the employer to the member employee.
Provision regarding withdrawal of total amount deposited in PF
account of member employee.
• Section 69 of the PF scheme provides for the circumstances under
which the employee will be paid the total amount deposited in his
PF account. those conditions are
• After the retirement of the member employee. After the age of 55
years.
• If an employee is given retirement on the basis of his physical
incapacity to work whether that incapacity is physical or mental
incapacity. Permanent physical and mental disability of that
employee must be certified by the medical officer of the employer.
• In such a situation, the sweeper can withdraw the total amount
deposited in his PF account.
• If a member employee wants to go outside India and settle abroad
permanently, then in such a situation the total amount deposited
in his PF account will be paid to that member employee before
going abroad.
• If a member employee is retrenched and that retrenchment is
done on collective basis or on individual basis, then in such a
situation that member employee will be paid the total amount
deposited in his PF account.
• If the appointment of a member employee of PF scheme is done
on the basis of voluntary retirement, then in such a situation that

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member employee can withdraw the total amount deposited in

his PF account.

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Provision regarding
withdrawal of advance
amount from PF account
under certain circumstances.
• If a factory or establishment closes down, some employees
working there are not retrenched. Those employees are
transferred by the employer to any other factory or establishment
which is not covered under the PF Act. In such a situation, the
employee can withdraw the total amount deposited in his PF
account.
• If a member employee is transferred to a factory or establishment
where this Act does not apply, the member employee can
withdraw the total amount deposited in his PF account.
• If an employee is terminated and that employee has been given
retrenchment benefits under the Industrial Disputes Act 1947,
then that employee can withdraw the total amount deposited in
his account.
• If a member employee leaves employment in one factory or
establishment to which the PF Act is in force and does not join any
other factory or establishment to which this Act is in force, in such
case, if the member If an application is made by the employee to
the concerned commissioner to withdraw the amount deposited
in his PF account, then the PF commissioner or any other
authorized officer will be allowed to withdraw the total amount
deposited in his PF account.
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• For this, it is necessary that the employee should have worked for
at least 2 months in that factory establishment. If the employee
leaves the job after working for less than 2 months, then the
employee cannot withdraw the total amount deposited in his PF
account.
• If the member employee is a woman and she leaves the job on the
ground that she is about to get married, then in such a situation
there will be no compulsion for the female member employee to
work for at least 2 months. Even if the job has been done by that
female employee for less than 2 months, she can still withdraw
the total amount deposited in her PF account.

• If a member employee leaves the job in a factory or establishment

and the total amount deposited by him in his PF account is
withdrawn.
• After that, if some member employee joins the job in any other
factory or establishment, yes but the PF Act is applicable, then
that person will have to get membership of PF scheme once again
in the new factory or establishment and that person Only new
member of PF scheme will be considered.
Provision regarding withdrawal of amount from the PF account of the
deceased employee in case of death of the employee
• According to the provisions made under Section 70 of the BF
scheme, if a member employee dies, then in such a situation the
amount deposited in the PF account of that member employee
will be received by his nominee.

Annual statement of PF account of the employee.

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• According to the provisions made under section 73 of the PF skin,

this commissioner will send a statement of complete details of the
amount deposited in his PF account to each member employee.
In that statement, month-wise amount deposited in the
employee's PF account, opening balance, closing balance and the
amount of interest received on the deposited PF amount will be
given.

Provisions of Employees'
Pension Scheme.
What is pension scheme

Employees' Pension Scheme is a major scheme run under the

Employees' Provident Fund Act. Under this scheme, pension facility has
been provided to the member employees. Employees get this pension
facility after they complete their retirement age.
Essential Qualification of Employees for Pension Scheme
• The employee should be a member of PF.
The first qualification of the employee for the pension scheme is given
that he should be covered under the PF Act or should be a member
thereof. If an employee is not covered under the PF Act or is not a
member, then he cannot get the benefit of the pension scheme.
Under the PF Act, it is mandatory for the employee or member
employee to contribute 12% of his basic salary by the employee and
12% contribution by the employer to the PF account, 12% to be
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contributed by the Employer. Out of the contribution, 8.33 percent is

deposited in the pension scheme.
The service period of the employee is required to be 10 years.
To get the benefit of the pension scheme, it is necessary that the
employee has completed 10 years of his service or job and monthly
contribution should be deposited in his PF account for 10 consecutive
years only then he will be able to get the benefit of the pension scheme.
Completion of the age of 58 years.
Under the pension scheme, the employee gets the benefit of pension
only after the employee completes the age of 58 years. The benefit of
the pension scheme is not received before the employee attains the age
of 58 years.
After the employee has completed the age of 58 years, an application
has to be made to start pension under the pension scheme.
Calculation of pension of the employee under the pension scheme
Calculation of pensionable salary.
To calculate the pension of the employee under the Employees' Pension
Scheme, the pensionable salary of the employee will be first
determined, the salary received by him in the last 5 years or last 60
months of the service period of the employee will be considered as the
pensionable salary of the employee.
If an employee has completed 20 years of service, then the average
monthly salary of that salary till 5 years before the date of his leaving
the job or retirement will be considered as pensionable salary.
Calculation of the Eligible service of the employee.

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Eligible service of the employee under the Employees' Pension Scheme

is the total period of service rendered by the employee in it. Under the
Employees' Pension Scheme, it is mandatory for the employee to serve
at least 10 years to get the pension, if the service of 9 years and 8
months is done by the employee, then his service period will be counted
as 10 years. Similarly, if an employee has rendered service of 15 years
and 9 months, then his period of service will be considered as 16 years.
If the service period of an employee is 12 years and 2 months, then his
period of service will be considered as 12 years.
If a person does a job in different companies or institutions, then
If an employee is employed in different companies or institutions and
during this period his continuous contribution is made under the
Employees' Pension Scheme, then that period will be considered as the
period of continuous service of the employee. For example, if an
employee has worked for 6 years in one company and 6 years in another
company and while working in both the companies, he has contributed
continuously under the Employees' Pension Scheme, then the service
period of the employee is 12. year will be considered.

Formula for Calculation of Employee Pension

Pensionable Salary of the Employee* Period of Pensionable Service of
the Employee/70
As we mentioned above that the pensionable salary of the employee
will be considered as the salary on behalf of the monthly salary received
by the employee 60 months before the date of his leaving the job or his
retirement. And the period of employee pensionable service will be
considered as the total service period rendered by the employee.

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For example, if the average monthly salary of an employee for the last
five years is Rs 12,000 and the total period of service rendered by him
is 20 years, then the amount of his pension will be calculated as follows.
12000*20/70= Rs 3428
In this way, the amount of monthly pension that the employee will
receive will be ₹ 3428.
What are the benefits available to the employee under the pension
scheme?
Under the Employees' Pension Scheme, member employees get various
types of pension benefits. The benefits to be received by the employee
under the Employees' Pension Scheme are as follows:-

Retirement pension benefits

Under the Employees' Pension Scheme, the employee gets pension

benefits after completing his service period or after completing his
retirement age. After the member employee attains the age of 58 years,
he is given benefits under the Employees' Pension Scheme. The
employee has to apply for pension benefits under the Employees'
Pension Scheme after attaining the age of 58 years. The employee
pension benefit continues to be received by him till he is alive. Under
the Employees' Pension Scheme, after the employee has completed the
age of 58 years, to start the retirement pension, Form No. D has to be
filled and submitted to the Employees' Provident Fund Office.

Disabled Pension Scheme.

According to the provisions made under the Employees' Pension
Scheme, if a member employee becomes disabled before completing

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his retirement age of 58 years, then he will be given the benefit of

disability pension under the Employees' Pension Scheme. Under the
Employees' Pension Scheme, an employee must have contributed at
least 1 month to his pension scheme to get disability pension benefits.
If at least 1 month monthly contribution is deposited in the employee
pension scheme, then he will be given the benefit of disability pension.
Widow Pension Benefit.
If the member employee dies during the service under the employee,
then in such a situation the widow wife of that employee will get the
pension benefit under the Employees' Pension Scheme. Under the
Employees' Pension Scheme, if the employee widow wife is remarried
on the death of his widow, then in such a situation the wife of the
deceased employee will not get the benefit of widow pension.
Only in case the employee’s widow wife does not remarry, the widowed
wife of the employee will get the pension benefit.
Pension benefits to the children of the employee.
According to the provisions made under the pension scheme, if an
employee dies while in service, then in addition to the widow wife of
that deceased employee, the children of that deceased employee will
also get pension benefits. Under the Employees' Pension Scheme, up to
2 children of the deceased employee will get pension benefits. If the
deceased employee has more than two children, then only two children
will get the benefit of pension. The children of the deceased employee
will get the benefit of pension under the Employees' Pension Scheme
only till the age of 25 years. If the age of the children of the deceased
employee exceeds 25 year, then they will not get the benefit of pension.
Under the Employees' Pension Scheme, the amount of pension received
by the children of the deceased employee, 25% of the amount of widow
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pension amount received by the widow's wife of the employee will be

received as pension.
Pension benefits to the orphan children of the deceased employee.
As per the provisions made under the Pension Scheme, if a member
employee dies while in service and the wife of the deceased employee
is not alive and the deceased employee has children and the age of
those children is below the age of 25 years, then Till that the children of
the employee will get the benefit of pension under the Employees'
Pension Scheme. Under the Employees' Pension Scheme, the amount
of pension received by the orphan children of the deceased employee
will be equal to 75% of the widow's pension amount.
Calculation of contribution to pension scheme.
According to the provisions made under the Employees' Provident Fund
Act, it is mandatory to deposit monthly contribution in the PF account
of the employee who is covered under the PF Act. In the monthly
contribution of PF, 12% of the basic salary DA of the employee is
contributed by the employee and 12% amount is contributed by the
company. The entire amount of 12% contribution to be made towards
the employee gets deposited in the Employees Provident Fund Scheme,
whereas out of the 12% contribution made by the company, 8.33% is
deposited under the Employees Pension Scheme and the remaining
3.67 percent amount. It is deposited in the Employees Provident Fund.
In this way, 8.33% of the basic salary and Dearness allowance and will
be deposit in EPS fund.

Why is Form 10C filled?

Rules regarding withdrawal of deposits under pension scheme.

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Form No. 10C will be filled to withdraw the amount deposited under the
pension scheme before the employee has completed 10 years of service
under the pension scheme.
If the employee joins another company after leaving the job of one
company. So he has to fill Form No. 10C to get the EPS certificate to
transfer the amount deposited under his pension scheme from the old
company's PF account to the new company's PF account. Further detail
description is given about EPS. If the employee's job is completed for 10
years, then he cannot withdraw the amount deposited in the pension
scheme On completion of 10 years of service of the employee, he
becomes eligible to get pension under the Employees' Pension Scheme
and he starts getting this pension after completing the age of 58 years.
If the employee's job is for 9 years and 6 months, then it will be
considered as 10 years only.
What is the minimum job duration required to fill Form No 10C
To withdraw the amount deposited in the pension scheme, it is
necessary for the employee to have at least 6 months in the job. It is
necessary to deposit the contribution under the pension scheme in the
PF account of the employee for 6 months. If an employee leaves the job
before the period of 6 months, then he cannot withdraw the amount
deposited under the pension scheme in his PF account.
In this way, it can be said that the period of employment of the
employee should be more than 6 months and it is necessary to be less
than 10 years to fill the Form No. 10C to withdraw the deposit amount
under the pension scheme.

After how much time the employee can fill the Form No. 10C after
leaving the job.
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If a pension scheme member employee quits his/her job, then he/she

can fill Form No. 10C after 2 months from the date of leaving the job or
after 60 days to withdraw the amount deposited under the pension
scheme. For this, his job needs to be at least 6 months.

Form No. 10D

Pension initiation process.
Under the Employees' Pension Scheme, when the employee attains the
age of 58 years, Form No. 10D is filled by the employee to start the
pension.

What is EPS Certificate?

According to the provisions made under the pension scheme, if a
member employee leaves a job in one company and joins a job in
another company, then he has to transfer the amount deposited under
the pension scheme under his Privious PF account to the PF account of
the new company EPS Certificate is required. When the employee
leaves the job from his old company, he has to fill Form No. 10C to get
the EPS certificate. Form number 10C submitted by the employee's old
company to the EPFO office. The EPS certificate is issued to the
employee by the EPFO office after the Form No. 10C is submitted to the
EPFO office. Here the EPS certificate has to be given to the employee
and in the new company this EPS certificate is submitted along with
Form No. 11 to the EPFO office. In this way, the amount deposited under
the pension scheme of the employee through the EPS certificate is
transferred from the PF account of the old company to the PF account
of the new company. In this way, whenever the employee leaves the job

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of one company and joins the job of another company, he will have to
obtain an EPS certificate to transfer the amount deposited in his pension
scheme. And to get this certificate, the employee has to fill Form No.
10c every time.

• What is Form No 19.

If an employee leaves his job and after leaving the job, he wants
to withdraw the amount deposited in his PF account, then he has
to submit Form No. 19 is to be filled and given to the employer
and the employer submits this form to the PF office. This form can
also be submitted online by the employer thus Form No. 19 is
filled to withdraw the amount of PF.

• When is form number 10C filled

According to the provisions made under the PF Act, out of the 12%
contribution made by the employer, 8.33 percent is deposited
under the Employees' Pension Scheme.

When the employee leaves his job from one company and joins
another company, then the employee can withdraw 8.33 percent
of the contribution deposited in his pension scheme or transfer it
to the PF account number of his new company. For this employee
need to fill up form 10C.

• The following information is to be provided by the employee in

Form 10C:-
a) Name, address, age and name of the applicant or member
member's date of birth
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b) Name of the institution or establishment, PF code number

and address of the institution
c) Date of joining of employee
d) Employee quit date
e) Reason for leaving the employee's job
f) Name, address, age of the employee's nominee
g) Information about the medium through which the amount
is to be remitted, such as by postal order, check or transfer
to a bank account
h) Form 10c should also be signed and stamped by the
authorized officer of the company.
i) If the employee wants to get the EPS certificate, then the
information has to be provided.
j) This form must be signed by the employee.

• After how much time form 10c can be filled after leaving the job?
Form Number 10c can be filled in 2 months after the date of
leaving the job.

• How to fill form no 10c.

If employee wants to fill Form 10C to withdraw the amount
deposited in his pension scheme, then he can fill it online or can
also submit it to the EPFO office.

• Eligibility to withdraw pension scheme deposits.

To get the amount of pension scheme, it is necessary that the
period of 6 months continuous service of the employee is less

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than 10 years, then only the employee can withdraw the amount
deposited under his pension scheme.

If the employee's service has been more than 10 years, then the
amount deposited in his pension scheme cannot be withdrawn by
him, in such a situation the employee becomes eligible to get
pension under the pension scheme and he will get this pension
after age of 58 years. He gets it after completing age.

• By whom is the EPS certificate issued?

• When does any PF account become inactive?

According to the provisions made under the PF Act, if any
contribution amount is not deposited in the PF account of an
employee for 36 months, then after 36 months the PF account of
that employee automatically becomes inactive.

• Interest is earned on the amount deposited in the PF account.

As per the provisions made under the Act, contribution of 12% is
made on behalf of the employee on the amount of monthly basic
salary and dearness allowance received by the employee in the PF
account of the employee. This entire 12% amount is deposited in
the EPF account and 12% amount is also contributed by the
employer, out of this 12% amount, 8.33 percent is deposited
under the Employees' Pension Scheme and the remaining 3.67
amount is deposited in the PF Fund. it occurs. Therefore, interest
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is paid by the EPFO on 12% of the amount deposited in the EPF

fund by the employee and 3.67 percent of the amount deposited
by the employer.

• How is the contribution amount determined?

According to the provisions made under the Act, 12% monthly
contribution is made by the employee on the amount of monthly
basic salary and dearness allowance received by the employee in
the PF account of the employee and 12% monthly contribution is
to be deposited by the employer. The entire amount of 12%
contribution gets deposited in EPF fund and out of 12% amount
deposited by employer 8.33 gets deposited under Employee
Pension Scheme and remaining 3.67 percent amount gets
deposited in EPF fund.

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Employee Deposit Link

Insurance Scheme
Employee Deposit Link Insurance Scheme
• The Employee Deposit Link Insurance Scheme was implemented
in the year 1974. This scheme will be applicable to all those
employees working in factories and other establishments on
which the Employees Provident Fund Act is applicable.
Contribution to Employee Deposit Linked Insurance Scheme.
• Contribution to the Employee Deposit Link Insurance Scheme will
be made by the employer as per the provisions made under Clause
7 of the Employee Deposit Link Insurance Scheme.

• The contribution towards Employee Deposit Link Insurance

Scheme will be made at .5% of the amount of monthly basic salary
+ dearness allowance received by the employee.
Mode of payment of contribution.
• As per the provisions made under Rule 8 of the Scheme, the
contribution will have to be made by the employer within 15 days
of the next month after the end of the month.
• This contribution can be made by the employer through bank draft
or even through cheque.
• It will be the responsibility of the employer to deposit the
contributions of the employees working directly under the
employer and the employees working under the contractor.

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Penalty for not depositing contribution.

• According to the provisions made under Rule 8A, if the
contribution of Employee Deposit Linked Insurance is not
deposited by the employer or there is a delay in depositing it, then
in such a situation the amount of penalty will be recovered from
the employer.
The rate of recovery of penalty amount is as follows.
• If there is a delay in depositing the contribution for 2 months or
less than 2 months, a penalty of 5% per annum will be charged on
the amount of the contribution.
• If there is a delay in depositing the contribution for more than 2
months and less than 4 months, a penalty at the rate of 10% per
annum will be charged on the amount of the contribution.
• If there is a delay in depositing the contribution for more than 4
months and less than 6 months, then a penalty of 15 percent per
annum will be charged on the amount of the contribution.
• If there is a delay of more than 6 months in depositing the
contribution, a penalty at the annual rate of 20% will be charged
on the contribution amount.
Provision regarding waiver of penalty amount.
• According to the provisions made under Rule 8B of the scheme, if
there is a delay in depositing the contribution by the PF
Commissioner in the following situations, the penalty can be
waived.
• If there is any change in the management of the establishment or
factory, or transfer of employees or merger of the establishment
or the establishment or factory is declared a sick industrial unit,

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then the delay in depositing the contribution in such a situation

The amount of penalty imposed can be waived.
• If the Industrial and Financial Reconstruction Board recommends
the amount to be waived off, then in such a situation the amount
of penalty can be waived off.
• The contribution amount cannot be deducted from the
employee's salary.
• The amount of contribution to the Employee Deposit Linked
Insurance Scheme will be paid by the employer as per the
provisions made under Rule 9 of the Scheme. This amount of
contribution cannot be deducted from the employee's salary by
the employer.
Duties of the employer.
• As per the provisions made under Rule 10 of the Employee
Deposit Link Insurance Scheme, the following are the duties of the
employer.
• It is the duty of the employer to submit monthly returns to the PF
Commissioner within 15 days of the commencement of the
scheme.
• Every employer shall submit a return in Form No. 5 of the
Employees Provident Fund Scheme to the PF Commissioner within
15 days after the end of the month.
• In this return, information will be given about those employees
who became members of the Employee Deposit Link Insurance
Scheme for the first time in that month.
• The nomination form to be filled by new members will also be
presented along with Forum No. 5.
• Form No. 5 will also give information about those employees who
left their jobs in that month.
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• If there is no new member employee in a month or no employee

has left the job, then in such a situation, in the monthly return
form by the employer, the number of new members becoming
members and the number of members leaving the job will be
shown in Nil. .
• Information about the total contribution deposited by the
employees every month by the employer will be shown in the
challan to be filled under the Employees Provident Fund Scheme.

• When and why was the EDLI scheme started?

A. Employee Deposit Link Insurance Scheme was started in the
year 1976. The main objective of starting the scheme was to
provide financial assistance to the family of the employee after his
death.

• What is the maximum sum insured in EDLI?

A. the Employee Deposit Linked Insurance Scheme, the
government has increased the amount of insurance to a maximum
of ₹ 700000, earlier this amount was ₹ 600000.

• What is the minimum sum assured in EDLI.

A. Under Employee Deposit Linked Insurance, the minimum
amount of insurance has been increased to Rs 2.5 lakh, earlier the
minimum amount of insurance was ₹ 600000.

• How much is the bonus amount determined in EDLI?

A. Employee Deposit Ling Insurance, a bonus of 175000 is given,
earliar, the amount of this bonus was 150000, the amount of
bonus is included in the total maximum amount of insurance ₹
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700000. Bonus that this amount is provided by the government.

• Who gets the benefit of EDLI scheme

A. this scheme, the amount of insurance is received by the family
members of the employee, legal nominee by him.

• Eligibility to avail EDLI benefits

A. get the benefit of Employee Deposit Link Insurance Scheme,
the employee must be a member of the EPF scheme.

• EDLI is contributed by whom

A. monthly contribution to be made under the Employee Deposit
Link Insurance Scheme is made by the employer itself, the
employer cannot take the amount of this contribution from the
employee.

• Registration in Employee Deposit Link Insurance Scheme

A. an employee is member to the EPF scheme, he will
automatically be member to the Employee Deposit Linked
Insurance Scheme.

• Any tax on the sum assured received in EDLI

A. the EDLI scheme, the amount of insurance received by the
nominee of the employee is completely tax free, no tax or fee of
any kind is to be paid on the amount.

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• Calculation of Sum Assured under EDLI

A. this scheme, the basic salary + Darelans Allounce of the
employee for the last 12 months is provided 35 times, earlier this
amount used to be 30 times, then in this amount ₹ 175000 is
added as bonus and earlier bonus amoun was 150000.

• EDLI Insurance Calculation Formula

A. example, if the basic salary + dearness allowance of an
employee for the last 12 months, the amount of is ₹ 15000, then
the amount of insurance will be calculated as follows.

15000 * 35 = 5,25000
5,25000 1,75000 = 7,00000

Total sum insured = 700000

• What is the percentage contribution prescribed for Employee

Deposit Link Insurance?
A contribution of .5% of the amount deposited in the PF account
is deposited for Employee Deposit Insurance.

• Who contributes to the Employee Deposit Link Insurance?

Employee Deposit Link Insurance is contributed by the company.

Administrative cost on the total amount deposited in EDLI and EPF

is levied at the rate of 1.1 percent on EDLI and 0.01% on the total
amount deposited in EPF and is paid by the company.
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Monthly Challan Of P.F.

Different types of accounts of PF Challan.
How many types of accounts are there in PF challan.
There are 4 types of accounts in PF challan. Earlier there were five
accounts of PF Challan. In which the fifth account number was 22, the
administrative fee of the EDLI scheme was deposited in this account,
but the administrative fee on EDLI has been abolished by the EPFO from
April 1, 2017. Due to this reason only four accounts are left in the PF
challan. which is the following:-

Account number - 1
Account number- 2
Account number- 10
Account No.- 21
What amount is deposited in the account number 1 of PF Challan.
• PF contribution is deposited in account number one. In this
account, contribution of 12% PF amount is deposited by the
employee and 3.67 percent by the employer.
Which amount is deposited in the account number 2 of PF Challan.
The amount of administrative fee on PF amount is deposited in account
number 2 of the challan. This amount is .50 percent of the PF wage
amount. Which is fully paid by the employer.
Calculation of the amount deposited by the employee in the PF
account.
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Calculation of amount to be credited in Account No. 1 of PF Challan.

For example, if the basic salary DA of an employee is Rs 10000, then the
amount of contribution deposited in this account on behalf of the
employee will be calculated as follows.
10000 × 12 100 = Rs 1200
In this way, the amount deposited in the PF account on behalf of the
employee will be Rs 1200.
This amount will be deposited in account number 1 of PF challan.
Calculation of the amount deposited by the employer in the PF
account.
For example, if the basic salary of an employee is DA 10000 rupees, then
the amount of contribution deposited in this account on behalf of the
employer will be calculated as follows.
10000 × 3.67 100 = Rs 367
In this way, the contribution made by the employer in the PF account
will be ₹ 367
This amount of ₹ 367 will be deposited in account number 2 of PF
challan.
Calculation of administrative charges on PF amount deposited in PF
account.
Calculation of amount to be credited to account number 2 of PF
challan.
For example, if the basic salary DA of an employee is Rs 10000, then the
amount of contribution deposited in this account on behalf of the
employee will be calculated as follows.

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10000 × .50 100 = Rs.50

This amount will be deposited in account no 2 of PF challan.
What amount is deposited in the account number 10 of PF Challan
The pension scheme amount is deposited in the account number 10 of
the challan, which is 8.33 percent. The entire contribution of 8.33% of
the pension scheme amount is deposited by the employer.
Which amount is deposited in the account number 21 of PF challan.
The amount to be deposited under the Employer Deposit linkd Scheme
is deposited in the account number 21 of the PF challan. This amount is
.50 percent of the basic salary.
How the amount of pension scheme deposited in PF account is
calculated.
Calculation of amount to be credited in account number 10 of PF
challan.
For example, if the basic salary DA of an employee is Rs 10000, then the
amount of contribution deposited in this account on behalf of the
employee will be calculated as follows.
10000 × 8.33 100 = Rs 833

In this way, the amount to be deposited in the pension scheme by the

employer in the PF challan will be ₹ 833.
This amount will be deposited in account number 10 of PF challan.
Calculation of the amount of Employee Deposit Gender Insurance to
be deposited in the challan.

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Calculation of amount to be credited in Account No. 21 of PF Challan.

For example, if the basic salary DA of an employee is Rs 10000, then the
amount of contribution deposited in this account on behalf of the
employee will be calculated as follows.
10000 × .50 100 = Rs.50
In this way, the amount to be deposited under Employee Deposit Linked
Insurance Scheme in PF Challan will be ₹ 50, this amount will be fully
contributed by the employer.
This amount will be deposited in account number 21 of PF challan.

Compliances of P.F.
• Why Form 2 is filled.
Form number 2 is filled at the time when an employee is
appointed in a company and he comes under the PF scheme, then
form number 2 is filled by that employee to open his new PF
account, in a way of PF scheme Form number 2 is to be filled to
become a member.
• Why is the forum number 5(IF) filled?
An employee is covered under the PF scheme and if that employee
dies, in such a case, Form No. 5(IF) is to be filled by the nominee
of the deceased employee to claim the amount of Employee
Deposit Linked Insurance.
• Amount received under Employee Deposit Link Insurance.

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Under the EDLI scheme, a provision has been made to give

minimum insurance amount of Rs. 2.5 lakh and maximum Rs.
700000 to the deceased employee. Earlier the minimum amount
of Employee Deposit Link Insurance was ₹ 200000 which was
increased to ₹ 250000 and the maximum amount was ₹ 600000
which was increased to ₹ 700000.
• 5(IF) is filled by whom.
Forum No. 5(IF) is filled by the employee through his/her
nominee. When Form No. 2 is filled by the employee to become a
member of the PF scheme, the name of his nominee is indicated
by the employee in that form. Form No. 5(IF) is to be filled by the
same nominee to claim the amount of insurance under the
Employee Deposit Linked Insurance Scheme.
• Why and when Form No. 10C is to be filled.
When an employee leaves the job in a company and he is a
member of the EPS scheme and that employee wants to withdraw
his pension scheme deposit in the PF account, then the employee
has to withdraw the amount deposited in his pension scheme.
Form No. 10C will be filled for The contribution of the amount
deposited in the pension scheme account is 8.33 percent. Form
number 10c can also be filled online, can it be submitted to the PF
office also.

If the employee has completed 10 years of service, then he cannot

withdraw the amount deposited in his pension scheme through
Form No. 10C Because after 10 years that employee is entitled to
get pension. Which he will start getting after completing the age
of 58 years.

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• How much time contribution is mandatory to file 10C

For filling Form No. 10c, it is mandatory for the employee to
contribute to PF for at least 6 months. If an employee leaves his
job before 6 months so that the contribution of the amount
deposited in the PF account on his behalf remains less than 6
months, then he cannot withdraw 8.33 percent of his pension
scheme on leaving the job. He can only withdraw his PF fund
amount.
• Why and when Form No. 13 is to be filled.
When an employee leaves his job from one company and joins a
job in another company, then form number 13 is filled to transfer
the amount of his old PF account number to PF account number.
Form number 13 can also be filled online. Can be depodite in PF
office.
• Why Form No. 14 is filled.
Forum No. 14 is filled by the employee to buy the policy of Life
Insurance Corporation. By filling this form, the employee can buy
life insurance policy from the amount deposited in his PF account
number.
• Why and when Form No. 20 is to be filled.
When a PF account holder employee dies, form number 20 will be
filled by the nominee of the deceased employee to withdraw the
full PF amount deposited in his PF account.
• How many types of accounts are there in PF challan.

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There are 4 types of accounts in PF challan. Earlier there were five

accounts of PF Challan. In which the fifth account number was 22,
the administrative fee of the EDLI scheme was deposited in this
account, but the administrative fee on EDLI has been abolished by
the EPFO from April 1, 2017. Due to this reason only four accounts
are left in the PF challan. which is the following

Account number - 1
Account number- 2
Account number- 10
Account No.- 21

• What amount is deposited in the account number 1 of PF Challan.

PF contribution is deposited in account number one. In this
account, contribution of 12% PF amount is deposited by the
employee and 3.67 percent by the employer.
• Which amount is deposited in the account number 2 of PF Challan.
The amount of administrative fee on PF amount is deposited in
account number 2 of the challan. This amount is .50 percent of the
PF wage amount. Which is fully paid by the employer.
• What amount is deposited in the account number 10 of PF Challan
The pension scheme amount is deposited in the account number
10 of the challan, which is 8.33 percent. The entire contribution of
8.33% of the pension scheme amount is deposited by the
employer.
• Which amount is deposited in the account number 21 of PF challan.

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The amount to be deposited under the Employer Deposit linkd

Scheme is deposited in the account number 21 of the PF challan.
This amount is .50 percent of the basic salary.
• How the amount of Employee Deposit Linked Insurance is calculated.
Employee Deposit Linked Insurance is calculated on the basic
salary of the employee. This amount is deposited .50% of PF
wages or maximum ₹ 75 per month. Entire contribution of this
amount is done by the employer.

In this way, 12% of the basic salary is contributed by the employer

in the challan of PF and if the administrative fee is included in this,
then this amount is 13 percent of the basic salary. And 12% of the
basic salary is deposited by the employee in the PF challan.
• How the amount of PF contribution is calculated.
In the amount deposited in the PF account, 12% of the basic salary
DA of the employee is contributed by the employee and 3.67% is
contributed by the employer.
For example, if the basic salary DA of an employee is Rs 10000,
then the amount of contribution deposited in this account on
behalf of the employee will be calculated as follows.

• Calculation of the amount deposited by the employee in the PF

account.
• Calculation of amount to be credited in Account No. 1 of PF Challan.
For example, if the basic salary DA of an employee is Rs 10000,
then the amount of contribution deposited in this account on
behalf of the employee will be calculated as follows.
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10000 × 12/ 100 = Rs 1200

In this way, the amount deposited in the PF account on behalf of
the employee will be Rs 1200.
This amount will be deposited in account number 1 of PF challan.

• Calculation of the amount deposited by the employer in the PF

account.
For example, if the basic salary of an employee is DA 10000
rupees, then the amount of contribution deposited in this account
on behalf of the employer will be calculated as follows.

10000 × 3.67/ 100 = Rs 367

In this way, the contribution made by the employer in the PF

account will be ₹ 367

This amount of ₹ 367 will be deposited in account number 2 of

PF challan.

• Calculation of administrative charges on PF amount deposited in PF

account.
• Calculation of amount to be credited to account number 2 of PF
challan.

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For example, if the basic salary DA of an employee is Rs 10000,

then the amount of contribution deposited in this account on
behalf of the employee will be calculated as follows.
10000 × .50/ 100 = Rs 50
This amount will be deposited in account no 2 of PF challan.

• How the amount of pension scheme deposited in PF account is

calculated.
• Calculation of amount to be credited in account number 10 of PF
challan.
For example, if the basic salary DA of an employee is Rs 10000,
then the amount of contribution deposited in this account on
behalf of the employee will be calculated as follows.

10000 × 8.33 / 100 = Rs 833

In this way, the amount to be deposited in the pension scheme

by the employer in the PF challan will be ₹ 833.

This amount will be deposited in account number 10 of PF

challan.

• Calculation of the amount of Employee Deposit Gender

Insurance to be deposited in the challan.
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• Calculation of amount to be credited in Account No. 21 of PF Challan.

For example, if the basic salary DA of an employee is Rs 10000,
then the amount of contribution deposited in this account on
behalf of the employee will be calculated as follows.

10000 × .50/ 100 = Rs 50

In this way, the amount to be deposited under Employee Deposit

Linked Insurance Scheme in PF Challan will be ₹ 50, this amount
will be fully contributed by the employer.

This amount will be deposited in account number 21 of PF

challan.

• What is the date of submission of monthly challan of PF.

The date of submission of monthly challan of PF is 15th of the next
month.
For example, the PF challan for the month of July of any company
has to be submitted by the 15th of the next month i.e. the 15th of
the month of August.
• Why is Form No. 15G filled?
Form No. 15G is filled by the employee to get exemption in the
interest amount on withdrawal of the amount deposited under his
PF account.

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• What is the date of submission of monthly challan of PF.

• Form No. 5 is filled by the company, in this form the information
of the employees joining the company is presented, Form No. 5 is
submitted every month in the PF office, this form is submitted
online. The last date for submission of Form No 5 is 15th of the
following month.

For example, if 15 new employees have joined a company in the

month of July, which are covered under the PF scheme, the details
of these employees will be given in Form No. And this form
number has to be submitted by 15th of the month of 5th August.

• Why Form No. 31 is filled.

If the member employee of the PF scheme wants to withdraw the
advance amount from the amount deposited in his PF account,
then he has to fill the form number 31 and submit it to the PF
office.
• For what requirements the employee can withdraw the advance
amount from his PF account.
The employee can withdraw the advance amount from his PF
account for the following requirements:-

a. For medical needs in which he can withdraw advance amount

from PF amount for the medical treatment of his own wife or his
children or his parents or siblings.

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b. For marriage: - For the marriage of son or daughter or siblings

himself, the employee can withdraw the advance amount from
the amount deposited in his PF account.
c. An employee can withdraw the amount deposited in his PF
account for the purpose of building a house or buying a plot.
d. For education himself or for the education of son, daughter or
siblings, the employee can withdraw the advance amount from
the amount deposited in his PF account.

• Why and when is the Forum No. 6A filed?

Form No. 6 is the return of PF contribution, in which the details of
the contribution deposited by the employer and employee in 1
year are given, in which the details of the entire amount of
contribution deposited in the PF account during the whole year
are presented.
• Why Form No. 10D is filled.
When a member employee of a PF scheme continues to
contribute to the PF account for 10 years, then after 10 years he
becomes eligible to receive benefits under the Employees'
Pension Scheme and to receive pension, the employee Form
number 10D is to be filled. Under the pension scheme, the
employee starts getting pension only after he completes the age
of 58 years.

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Provision of Payment
of Bonus
• What is the Provision of Payment of Bonus
A. There is a provision for payment of bonus of employees under
the Payment of Bonus Provision. The Provision Bonus Payment
applies to every establishment and company where 20 or more
than 20 employees work.

• Limit for Payment of Bonus

A. The minimum bonus limit has been fixed at 8.33 percent under
the Payment of Bonus .According to Section 31A of this Act, the
maximum limit for payment of bonus has been fixed at 20%, under
which the bonus related to productivity is also included.

• What is the minimum bonus amount fixed under the Provision

Bonus Payment
A. Under the Provision of Bonus Payment the minimum bonus
amount has been fixed at 8.33% of the salary of an employee
earned in a financial year. Under the Bonus Payment Act, the
maximum limit for bonus payment has been set at 20%.

• Minimum Working Days for Payment of Bonus

A. According to the provisions made under the Payment of Bonus
, if any employee has worked in any establishment for at least 30
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days in a financial year, then he is entitled to get bonus from that

establishment.
• Inclusion in Basic Salary for Calculation of Bonus
A. DA allowance is also added to the basic salary of the employee
while computing the bonus. Apart from this, no other allowance
is taken into account while computing the bonus.
• Salary Limit for Bonus Calculation
A. the limit of payment of bonus has been fixed at 7000, earlier
this limit was 3500, which was increased to 7000, if the minimum
wage in any state is more than 7000, then the bonus will be
calculated on the minimum wage.
• Calculations Of Bonus
A. If it is assumed that your basic salary + DA = 7000, then your
bonus will be calculated as follows Monthly Bonus = 7,000* 8.33%
= 583.1
Yearly Bonus = 583.1 *12 = 6,997.2
• What is the bonus calculation formula.
A. Income earned by an employee during a financial year
multiplied by 8.33 / 100
Maximum bonus payment limit.

A. As per the amendment made in 2015 under the Provision of

Payment of Bonus.the maximum wage limit for payment of bonus
has been increased from Rs. 10000 to Rs. 21000 monthly.
Therefore, it means that according to the Bonus Payment Act, only
those employees are eligible whose monthly salary does not
exceed 21,000/-.

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What is the eligibility to get the bonus under the Bonus Payment .

A. Under the Bonus Payment Provision, it is necessary for an

employee to work in that company or establishment for at least
30 days for that particular financial year.

• To which companies and establishments the Provision of Bonus

Payment applies.
A. The Bonus Payment Provision applies to every company or
establishment where 20 or more than 20 employees work.

• If an employee leaves the job then does he has the right to get
the bonus ?
A. If an employee leaves his job and has worked in that company
or establishment for at least 30 days, then that employee will be
entitled to receive bonus from that companies establishment.
• Minimum wage limit for payment Bonus
As per the amendment made in the Payment of Bonus Act 2015,
the limit of maximum of Rs 3500 monthly has been increased to ₹
7000 monthly for calculation of bonus.

• Time Duration for Bonus Calculation

A. is calculated on top of the salary paid to the employee during
a financial year.

• Time limit for Payment of Bonus

A. per the provisions made under the Provision Payment of
Bonus, the bonus has to be paid within 8 months of the end of the
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financial year. As the financial year ends on 30th March, so bonus

has to be paid within 8 months i.e. till the month of October.

• Complaint for Non Payment of Bonus

A. If bonus is not paid by any company or establishment, then the
employees of that company can complain to the labor
commissioner concerned.

• Punishment of Non Payment of Bonus

A. If bonus is not paid to the employees of any company or
establishment to which the Act applies, then under section 28 of
the Payment of Bonus Act, he shall be punished with fine which
may extend to ₹ 1000 or with imprisonment of either description
for a term which may extend to six months, or with both. could.

• Noneligibilty of Employee For Payment of Bonus

A. According to the provisions of 11 under Section 9 of the
Payment of Bonus Act, the following persons will not be eligible
for payment of bonus

If fraud or violence has been selected by an employee, property has

been st

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Provision for Payment

of Wages
Definition of Wages
• Wages refer to such remuneration that is received in exchange for
work in the form of money.

Under this, the payments received by the employee are also

included.
• Which an employee receives in return for his work.
• The following payments will be included under this. The following
payments will be included in the salary received by the employee
• If any remuneration of any kind has been determined to be paid
by award or settlement between the parties or by order of any
court, then that remuneration shall also be included under salary.
• Wage payment will also include payment for overtime work done
by the employee.
• The payment of wages shall also include any payment made to a
workman in lieu of leave availed of or in lieu of any leave.
• Any other remuneration paid to the employee in addition to the
salary as per the terms of employment shall be included in salary.
Under this, the payment of bonus to the employee or the payment
of any other kind of benefits to the employee will also be included.
• Salary shall also include any amount which the employee is
entitled to receive under any scheme for the time being in force
under any law for the time being in force.

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The following payments will not be included in the salary.

Payment of any Court order or Award
• A payment that is not made under an award or settlement. or
payment which is not made by reason of an order made by a court
of law.
Payment for accommodation facility.
• It will also not include the payment which is made to the employee
for providing accommodation to the employee. The payment
made to the employees for lighting arrangements will also not be
included in the salary.
Payment for medical facilities.
• Payments made by the employer for medical facilities to the
employees under salary will not be included in the salary.
• This will not include the payment of any such expenditure which
cannot be included in the calculation of wages under the order
passed by the State Government.
Payment of traveling allowance.
• According to the provisions made under the Payment of Wages
Act, the amount paid by the employer to the employees for travel
cannot be included under the salary.

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The amount of payment for the expenditure incurred in Course of

Work
• According to the provisions made under the Payment of Wages
Act, if any amount is paid by the employee for any work related to
his work and that amount is paid by the employer to the
employee, then in such a situation payment is made. The amount
will not be included under salary.
Gratuity amount.
• According to the provisions made under the Payment of Wages
Act, if the amount of gratuity is paid to the employee at the end
of his service, then that amount cannot be included in the salary
of the employee.

Provisions for Responsebility of employer to pay wages.

• Under Section 3 of the Payment of Wages Act, 1936,

provisions have been made for the employer's responsibility
for payment of salary or wages to the employee or workmen,
which are as follows

• It is the responsibility of any employer to pay all types of

wages under this Act to his employees or workmen.
Responsibility for payment of wages in respect of factory

• The payment of salary or wages to the employees or workers

working in any factory or factory shall be the responsibility of
thus person who has been nominated as factory manager
under section 63 of the Factories Act 1948 and who acts as
factory manager. doing.
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Responsibility for payment of wages in an industrial establishment

or any other establishment.
• According to the provisions made under the Payment of
Wages Act, the responsibility for payment of wages to the
employees in an industrial establishment or any other
establishment shall be on the person who is controlling or
supervising the industrial establishment or that
establishment on behalf of the employer and who is
responsible to the employer. In this way, in any industrial
establishment or other establishment, it is the responsibility
of the person exercising control or supervision on behalf of
the employer to pay the wages of his employees.
Provision of Responsibility of payment of salary in respect of
contractor
• According to the provisions made under the Payment of
Wages Act, the responsibility for payment of wages to the
employees working under a contractor will be on the person
who is appointed by the contractor and by the contractor to
whom the responsibility of payment of wages is given.

• In other cases the onus of payment of wages to the

employees shall be on the person who has been appointed by
the employer under this Act to comply with the provisions of
this Act.

• According to the provisions made under the Payment of

Wages Act, if the manager of the factory or the person
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exercising control or supervision in the industrial

establishment or other establishment or the person
appointed by the contractor fails to pay the wages to the
employee or workmen. In such a situation, it shall be the duty
of the employer to pay the wages of the employees or
workmen under him or under the contractor.
Provision regarding the period of salary payment.

Under Section 4 of the Payment of Wages Act, provisions have

been made regarding the time period for payment of wages,
which are as follows.

• According to the provisions made under the Payment of

Wages Act, the period of payment of wages prescribed under
this Act for the payment of wages or wages by the person who
is responsible for paying wages or salaries to the employees
under the Payment of Wages Act or Will determine the time
period. Wages shall be paid to the employees in the period or
time period decided by the person responsible for making the
payment of wages.

• The person responsible for paying the salary of the employees

can fix the period or time period for payment of salary not
more than 1 month. The period or time period of salary
payment cannot exceed 1 month. After 1 month compulsorily
the employees will have to pay the salary.
Provisions regarding time or date of payment of wages section 5

Section 5 of the Payment of Wages Act, provisions have been

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made regarding the time of payment of wages to the

employees which are as follows
On what date the salary will be paid if there are less than 1000
employees.
• If less than 1000 employees work in an industrial
establishment or factory, it will be mandatory to pay the
wages of the employees in that industrial establishment or
factory by the seventh day from the date of expiry of the wage
period. In this way, if the salary is paid on a monthly basis, the
month ends on the 31st, then it will be mandatory to pay the
employees by the 7th of the next month.
On what date the salary will be paid if there are more than 1000
employees.
• If more than 1000 employees work in an industrial
establishment or factory, then payment of salary to the
employees in that industrial establishment or factory will be
mandatory till the end of 3 days of the stipulated period. In
this way, if the salary is given to the employees on a monthly
basis and if the month ends on the 30th, then it will be
mandatory to pay the salary to the employees by the 10th of
the next month.
Provision for payment of salary on termination of the employee

• According to the provisions made under the Payment of

Wages Act, if an employee is relieved of service or fired by the
employer, then in such a situation, the payment of salary to
that employee will be made on the day he was fired. to that

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employee shall be paid the salary before the end of the

second working day.
Determination of the period of payment of salaries of employees.
A. Employees can be paid their wages daily, weekly and
maximum monthly as per the provisions made under the Pay
Payment Act. In the event of completion of one month,
employees should be paid their salary on the seventh day.
Time for payment of salaries to employees.

A. case of monthly payment, the employees should pay their

salary within seven days of completion of one month.
• Different types of deductions to be made from salary.
A. Salary of salary is given below

a. on duty / Leave without pay.

b. For house accommodations provided by the employer.

c. For damage or loss of goods by the Employee.

d. For recovery of advance payments.

Mode of payment of salary.

• According to the provisions made under Section 6 of the Payment
of Wages Act, the salary can be paid by the employer to the
employee in the following ways.
• This can be done in coins or notes of the prevailing currency at the
present time.
• Salary can be paid by the employer to the employee through
cheque.
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• The salary can be deposited directly into the bank account of the
employee by the employer.
• Provided that it may be decided by the appropriate Government
by official notification that in any particular industrial units and
establishments, the payment of wages to the employees may be
made only through check or may be deposited directly in the bank
account of the employees. .
Deductions of employee wages Section 7
• According to the provisions made under this Act, the employer
may deduct from the salary of any employee working under him
only such deductions as may be prescribed under this Act.
What amount will be considered as deduction.
• Any payment made by the employee to the employer in
accordance with the provisions made under this Act shall be
deemed to be a deduction.
Withholding of salary increase.
• If the salary increment of the employee is stopped by the
employer, if this work is done by him according to the rules made
by the government, then it will not be considered as a deduction.
If the salary increment of the employee is withheld by the
employer contrary to the rules made by the prescribed
Government, it shall be deemed to be a deduction.
Demotion or suspension of Employee
• If the employee is given lower rank or the employee is suspended
by the employer and the work is done by the employer in
accordance with the rules made by the appropriate Government,
it shall not be called a deduction. If the employee is given a lower
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salary or the employee is suspended by the employer contrary to

the rules made by the appropriate government, it will be called a
deduction.

What are the deductions that can be made

by the employer

Deduction of imposed penalty amount.

• If any fine is imposed by the employer on the employee in

connection with his work, the amount of such fine may be
deducted by the employer from the salary of the employee.

Deduction for absence from work.

• According to the provisions made under the Act, if the employee
remains absent from his work, then the employer can deduct
from the salary of the employee for absence.
Deduction for loss or loss.
• If any goods are entrusted to the employee by the employer and
the employee has to give account of that goods to the company.
If the goods are damaged or damaged due to the carelessness or
negligence of the employee, the employer has the right to deduct
from the salary of the employee for any such damage or loss.
Explanation:- The employer shall deduct from the salary of the
employee for the loss and damage caused to the goods by an
amount equal to the amount caused by the loss or damage to
the goods.
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Deduction for accommodation facility.

• If the facility of home accommodation is provided to the

employee by the employer, the employer may deduct from the
salary of the employee for such facility.

Deduction of Income Tax

• If the income tax on employee salary is paid by the employer, then
the amount of that income tax can be deducted from the salary
of the employee.
Premium of LIC

• The premium for the policy of the Life Insurance Corporation can
be deducted from the salary of the employee.

Deduction for amenities provided to the employee.

• If any kind of facilities are provided by the employer to the

employee, then the employee can deduct for such amenities in
accordance with the provisions made under this Act. Deduct from
the salary of the employee an amount or amount of equal value
to the amenities provided by the employer for such amenities.
The amount to be deducted should not exceed the value of
amenities provided.
Deduction of Advances

• If any kind of advance is taken by the employee from the employer

and that amount can be deducted from the salary of the
employee. Under this, the advance taken by the employee for
travel is also included.
• If any advance is given by the company to an employee before
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employment or commencement of job, some amount may be

recovered by the company from the first salary paid to the
employee.
• Provided that if the advance paid to the employee is for traveling
expenses, the same cannot be recovered from the salary drawn
to the employee.
Deduction of advance taken from Labor Welfare Fund.

• In accordance with the provisions made under this Act, if any

fund has been constituted by the appropriate Government for
the welfare of workers under the law. If any amount is borrowed
by the employee from that welfare fund, then the amount
borrowed by the employee and the amount of interest can be
deducted from the salary of the employee.
Deduction of loan taken for house construction.

• If a loan is given by the employer to the employee for

construction of house, then the employer can deduct the loan
given to the employee and the interest on that account from the
salary of the employee.

Social Security Scheme deduction.

• Contribution to social security fund or scheme constituted by law

may be deducted from the salary of the employee in accordance
with the provisions made under this Act. Such as deduction of
Employees' Provident Fund, deduction of Employees' Pension
Scheme, deduction of ESIC contribution etc.

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Deduction of tax to be levied by the Central or State Government.

• According to the provisions made under this Act, if any kind of tax
is imposed by the Central Government or the State Government,
which has to be paid by the employee, then all such taxes can be
deducted from the salary of the employee, such as deduction of
income- tax. , deduction of professional tax or such other taxes
as are levied by the Central or State Government and which are
to be paid by the employee. Those taxes can be deducted from
the employee's salary.
Membership Fees of Trade Union

• Under the Trade Union Act 1926 Deductions can be

made from the employee's salary to pay for membership
fees of a registered trade union.

Legal Provisions Regarding Fines or

Penalty – Section 8
Deduction of Penalty

• According to the provisions made under the Payment of Wages

Act, if any fine is imposed or imposed on an employee in respect
of his work, then the amount of that fine can be deducted from
the salary of the employee.
Approval for imposition of fine

• If any fine is imposed on an employee by the employer in respect

of his work, no fine of such nature can be imposed on the

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employee except with the approval of the competent authority.

Normally such approval is given by the Labor Commissioner.
Approval means permission not imposed by the employer on the
employee without the approval or permission of the competent
authority.
Show cause notice to the employee before imposing the fine
• In accordance with the provisions made under this Act, if any fine
is imposed on the employee by the employer in respect of his
work, it is necessary that before imposing the fine on the
employee, a show cause notice is given to the employee.
Employee be given an opportunity of presenting his reply
against the fine. As per the provisions made under the Act, the
employer cannot impose fine on the employee nor can deduct
the amount of fine from his salary without giving an
opportunity to the employee to show cause.
Display of notice of penalty.

• In accordance with the provisions made under the Act, if a fine is

imposed by the employer for any reason or for doing any work or
not doing any work by the employee, it shall be properly informed
by the employer at the workplace or the work premises where
the employee is engaged in the employment. will be displayed f.
What amount of fine will be deducted?

• In accordance with the provisions made under this Act, if any fine
of any kind is imposed by the employer on the employee which is
related to his work, the amount of the fine exceeds 3% of the
amount of salary drawn by the employee in one wage period.
cannot be deducted as fine. If the employee is paid salary on
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monthly basis, the amount to be deducted for penalty shall not

exceed 3% of the amount of monthly salary to be paid for that
month.
No penalty will be imposed on an employee below the age of 15
years.
• According to the provisions made under this Act, if the age of an
employee is less than 15 years, no fine of any kind shall be
imposed by the employer on the employee. Only employees
above the age of 15 years can be fined by the employer in respect
of his work.
The amount of fine cannot be recovered in instalments.
• If any fine of any kind is imposed by the employer on any employee
in respect of his work, then the employer cannot recover the
amount of fine imposed on the employee in installments in
accordance with the provisions made under this Act i.e. the
employer has to pay the amount of the employee. The amount
of fine imposed above will have to be deducted from the salary of
the employee in a lump sum.
Time limit for recovery of fine amount.

• According to the provisions made under the Act, if any kind of

fine is imposed on the employee by the employer in relation to
the OK work, then the employer can recover the amount of fine
within 90 days from the day of refusal of the employee, ie. The
amount of fine imposed by the employer on the employee can
be recovered from the employee within 90 days from the day on
which the fine is imposed. After 90 days the employer cannot
recover the amount of fine imposed on the employee.
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From which day the fine will be deemed to have been imposed.
• The date of imposition or imposition of fine on the employee in
accordance with the provisions made under the Act shall be the
date on which the fine isimposed on the employee by the
employer in respect of the employee doing or not doing any act.
Register of fines.

• In accordance with the provisions made under the Act, if any fine
is imposed by the employer on the employee in respect of his
work and the amount of such fine is deducted from the salary of
the employee.
• The amount of fine imposed on the employee and the amount to
be recovered shall be kept in writing or on record in the manner
and form prescribed under this Act. That is, the details of the fine
imposed on the employee and the amount of recovery to the
employer will be written in the form or register prescribed under
the Act.
Use of the Amount fine.

• The entire amount recovered by the employer against the fine

imposed on the employee in accordance with the provisions
made under the Act shall be spent or utilized for the benefit of all
the employees working in that establishment.
Powers of Inspector under Payment of Wages Act.
• Under Section 14 of the Payment of Wages Act, what powers and
rights are available to the Inspector under this Act have been
mentioned. The Inspector has the following rights and powers

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• If it appears to the Inspector that in any industrial establishment

or factory or in any other establishment to which this Act applies,
the provisions or rules made under this Act are being or are not
being carried out, Can do.

• The employer has any right to enter the premises of any industrial
establishment or factory at any reasonable time for the purpose
of carrying out the provisions and rules made under this Act.

• The Inspector may inquire into the wages paid to the employees
of any industrial establishment or any other establishment to
which this Act is applicable.

• The Inspector is empowered to order the documents and registers

to be maintained under the Act to be produced before him at a
specified place.

• The Inspector has the right that if the statements of any person or
persons are required for the implementation of the provisions and
rules of the Vahan Act, then he can take that statement from them
and expect them to appear for the statement at a certain place.
is.l

• If he is convinced that the provisions and rules of this Act have not
been followed by the employer, then in such case the inspector
can take possession of the documents and registers to be kept
under this Act or their Can take a copy.

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Compliances of Payment of Wages

Act
Penalty Register
• As per the provisions made under the Payment of Wages Act, it is
mandatory for the employer to maintain a register of the fines
imposed on the employees which are deducted from their wages.
In which the details of the amount of fine to be imposed on the
employees and the reasons for the imposition of the fine are
given.
Register of Advances.
• Under the Payment of Wages Act, employers are required to
maintain a register of advance payments made to employees. In
which the details of the advance payment amount to be given to
the employees are given.
Register of deductions.
• Under the Payment of Wages Act, employers are required to
maintain a register of deductions made from the wages of
employees, giving details of all deductions that have been made
from the wages of employees.
Register of wages.
• Under the Payment of Wages Act, employers have to keep a
record of the wages or salaries paid to the employees working
with them in the register. It contains the details of the amount of
wages paid to the employees.

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Annual Return Form – 4

• Under the Payment of Wages Act, employers have to submit
annual return in the format of Form No. 4 every year to the office
of the labor commissioner concerned.
Form 5
• Under the Payment of Wages Act, every employer is required to
display the abstract or abstract or abbreviation of the Payment of
Wages Act at his factory or institution premises. It should be
displayed in the factory or at some place in the Institute where
the employees working in the Institute can read it easily. Also it
should be displayed in a language which can be read easily by
most of the employees working in the Institute.
Intimation of the date of payment.
• As per the provisions made under the Payment of Wages Act, it is
necessary for every employer to display a notice of the date of
payment of wages in his factory or institution. This notice should
be displayed at a place where it can be easily read by the
employees working in the

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Important Legal
Provisions of ESIC
• What is ESIC .
A. Under the ESIC provision of medical assistance to the
employees is mainly related to health,ent or temporary disability or
any type oy or death in the course of employment.

• Which companies and establishments does the ESIC apply to.

A. The ESIC applies to all companies and establishments employing
10 or more employees. The ESIC Act is essentially applicable to all
such corporate establishments.

Key definitions under the ESIC

Act.
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Contribution
Congratulations means the amount paid by the principal employer in
respect of the employees working under him and includes the amount of
monthly contribution by the employees.
Definition of dependent
As per the provisions made under the Act, if any of the employee dies
then his/her relatives mentioned below will be considered as
dependents.
• The widow of the deceased employee will be considered as his
dependent.

• The legitimate and adopted son of the deceased employee will be

considered as his dependent. If the age of legitimate and adopted
son is more than 25 years, then he will not be considered
dependent. If the age of the sons or daughters of the deceased
employee is less than 25 years, only then they will be considered as
his dependents.

• The legitimate or adopted daughter of the deceased employee will

be considered as his dependent. If the legitimate or adopted
daughter of the employee is married, then she will not be
considered as a dependent of the deceased employee. Only
unmarried legitimate or adopted daughter will be considered
dependent of the deceased employee.

• If there is a widow mother of the deceased employee, she will be

considered as a dependent of the deceased employee.

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Employee Definition
• Employee means a person who is employed in a factory or
establishment to which the Act applies and that employee receives
remuneration or salary in lieu of employment.

• A person who is directly employed by an employer to do any work

or any part of that work in a factory establishment is called an
employee. A person shall be deemed to be an employee even if that
work is performed in the factory or establishment or is performed
elsewhere.

• A person employed in any factory or establishment by an

immediate employer or the principal employer or any agent of the
principal employer in part of the work carried on in that factory or
establishment.
Definition of factory under ESIC Act?
• Factory under the ESIC Act means any premises in which 10 or more
than 10 workers are employed on any day of the year. Certain
premises shall be treated as factories.
• Any manufacturing work is being carried on in that premises.
Definition of Insured Employee
Insured person under the ESIC Act means a person for whom
contribution under this Act is deposited and that employee is entitled to
receive the benefits provided under the Act, then that employee shall be
deemed to be an insured employee.
What is definition of principal employer?

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• The owner of a factory will be considered as principal employer

under the ESIC Act.

• The agent of the owner of the factory shall also be deemed to be

the principal employer.

• If the owner of the factory dies and a person is appointed as the

legal representative of the deceased owner or owner of the factory,
then his legal representative shall also be deemed to be the
principal employer.

• If a person is designated as the manager of a factory as per the

provisions of the Factories Act, 1948, that person shall also be
deemed to be the principal employer of that factory.

• In relation to any establishment, any person who is responsible for

the supervision and control of work carried on in that
establishment shall be deemed to be the principal employer of that
establishment.

Definition of Occupational injury

Occupational injury under the ESIC Act means injury caused by accident
or occupational disease to any insured person in the course of
employment or in the course of performing any work connected with the
employment.
• Such loss is in insurable employment.

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• If the damage caused to the employee is due to accident or

occupational disease, if the accident or occupational disease is in
the sequence of employment, then it will be considered as
employment injury.
• The loss caused to the insured employee whether it is caused by
accident or occupation, whether within the territory of India or
outside the territory of India, shall be treated as employment
injury.
Temporary disability
• Temporary disablement is an injury caused to an insured employee
incidentally which requires medical treatment.
• And due to such damage, the insured employee becomes
temporarily unable to perform the work which he was doing before
or at the time of damage.
Definition of Wages
• Wages means the remuneration or salary paid to the insured
employee after the fulfillment of the terms of the employment
contract entered into between the employee and the employer.
• It also includes payment for authorized leave to the employee.
• It also includes payment to the employee for lockout and strike
which is not illegal.
• Payments made to the employee during lay-off are also included.
• Also includes any other additional remuneration paid to the
employee.
The Following Payment will not be included in the wages.

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• Contribution to provident fund or pension fund to be made by the

employer will not be included under wages.
• Wages shall not include any contribution of any kind to be made by
the employer under this Act.
• Wages shall not include the traveling allowance granted to the
employee or the value of the concession granted for travel.
• If the employed person has to incur any expenditure during the
course of his employment and is paid by the employer to meet the
expenditure incurred by him, then that payment shall not be
included in the wages.
• If the gratuity amount is paid to the employee when he is relieved
from the job, it will not be included in the wages.
• What is the contribution in ESIC.
A. Earlier the rate of contribution of employers of ESIC was 4.75
percent which has been reduced to 3.25 percent. At the same time,
the rate of contribution of employees has been reduced from 1.75
percent to 0.75 percent.

• What is the employer's contribution to ESIC.

A. Employers' contribution under the ESIC is 3.25 percent which is

calculated on the gross salary of the employee.
• What is the employee's contribution to ESIC.

A. The contribution of employees in contribution to be made under

ESIC Act is 0.75 percent.
• How much salary limit has been fixed for ESIC contribution.

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A. The limit of gross salary for contribution to ESIC was earlier Rs.
15000 which has been increased to Rs. 21000. This means that all
those employees whose gross salary is up to Rs. 21000 monthly will
be entitled to get the benefit of ESIC. Employees having monthly
gross salary of more than ₹ 21000 will not be entitled to avail the
benefit of ESIC.
• What benefits are given to ESIC employee ESIC
A. Benefit received by employees under ESIC: - medical benefits
Disability benefit
Maternity benefit
Sickness benefit
Unemployment allowance
Dependent profit
Death benefit

Compulsory insurance for employees

• All employees are required to have insurance. According to the
provisions made under Section 38 of the ESIC Act, it will be
necessary to insure all the employees of the factory or
establishment on which the ESIC Act applies, who are covered
under the ESIC Act.
Provision for ESIC contribution
• Under Section 39 of the ESIC Act, provisions related to ESIC
contribution have been made.

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• Monthly contribution is made on behalf of the employee and on

behalf of the employer for each employee insured under the ESIC
Act.
• The contribution to be made by the insured employee as per the
provisions made under the ESIC Act shall be termed as employee's
contribution.
• The contribution to be made by the employer shall be called the
employer's contribution.
• Monthly contribution of an amount equal to 0.75% of his monthly
gross salary will be made by the employee as per the provisions
made under the ESIC Act.
• An amount of 3.25% of the monthly gross salary of the employee
will be deposited as monthly contribution by the employer.
• Under the Act of ESI, if an employer is not able to deposit the
amount of monthly contribution under this Act on time, then
interest will be charged on the outstanding amount at the rate of
12% per annum and this interest will be charged till the date till
which the payment is not made. go.
Liability of principal employer to deposit contribution.
• As per the provisions made under Section 40 of the ESIC Act, it is
the responsibility of the Principal Employer to pay monthly
contribution to the insured employees working under him, who are
employed directly under him or through any contractor or other
person. be employed under
• The employer shall be entitled to recover the amount of monthly
contribution to be made on behalf of the insured employees
working under him from the salary of the insured employees. The
amount to be deducted as contribution by the employer cannot

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exceed the amount of monthly contribution to be made by the

employee.
• But the amount of contribution made by the employer cannot be
recovered from the salary of regular employees. The employer
cannot deduct the amount of contribution from the salary of the
insured employees.
• It is the responsibility of the Principal Employer that he himself will
bear the expenses related to submission of contribution amount to
the Corporation.
Recovery of contribution from the contractor.
• If the monthly contribution is paid by the principal employer to the
employees engaged under the contractor, in such a situation the
principal employer recovers the contribution amount from the
contractor.
Appointment of Social Security Officer.
• Under Section 45 of the ESIC Act, a provision has been made for the
appointment of Social Security Officer.
• The Employees' State Insurance Corporation may appoint such
persons as it thinks fit to be Social Security Officers within any local
limits.
Power of Social Security Officer.
• The Social Security Officer can require any principal employer to
provide information relating to the ESIC Act to the Social Security
Officer.
• The Social Security Officer shall have the right to enter the factory
or establishment or office of the employer at any reasonable time.

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• Social Security Officer entering the factory or establishment or

office, the number of persons employed therein from the person
for the time being supervising,
• He may call for the production of information relating to wages paid
to persons employed and other necessary accounts and books and
documents and examine them.
• Social Security Officer can get photocopies of documents, registers
and account books kept in the factory or establishment or office
and take them with him.
Determination of contribution amount
• According to the provisions made under Section 45A of the ESIC
Act, if the amount of contribution is due by the principal employer
or contractor, then in such a situation the Social Security Officer can
determine the said amount.
• The order for the determination of arrears cannot be passed by the
corporation unless the employer is given an opportunity of being
heard.
Right to appeal against order of dues
• According to the provisions made under Section 45AA of the ESIC
Act, if an order is given by the Corporation for the determination
of dues and the employer or contractor is not satisfied with that
order, then in such a situation, he can file an appeal against that
order within 7 days of the order. can appeal.
• Provided that before appealing against the order, the principal
employer or contractor will have to deposit 25 percent of the total
due amount determined by the Employees' State Insurance
Corporation.

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• If the decision in the appeal made by the employer is in favor of

the employer, then 25% of the amount deposited by the employer
will be returned back with interest.
Procedure for recovery of dues.
• As per the provisions made under section 45B of the ESIC Act, if any
principal employer has arrears of contribution, then the recovery of
the contribution amount will be done in the same way as the
arrears of land revenue are recovered.

Issue of certificate to Recovery Officer.

• According to the provisions made under the ESIC Act, after
determining the dues on the employer, a certificate is issued by the
Competent Authority to the Recovery Officer for the recovery of
dues. The recovery officer can recover the outstanding amount in
the following manner after obtaining the certificate of recovery.
• The Recovery Officer may recover the arrears by attachment or sale
of the factory or establishment or the immovable property of the
principal or contractor.
• The officer has the power to arrest the employer and detain him in
jail.
• The Recovery Officer may appoint a receiver to manage the factory
of the employer or the property of the employer.
To which recovery officer certificate will be issued section 45D

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• A certificate of recovery will be issued to such recovery officer by

the authorized officer as per the provisions made under the ESIC
Act.
• Within the jurisdiction of which the employer carries on his
business or carries on business or within the jurisdiction of which
the head office of the employer's factory is situated.
• Recovery Officer within whose jurisdiction the employer resides.
• The Recovery Officer within whose jurisdiction any immovable
property of the employer is situated.

Validity of Certificate
• When a certificate is issued by the authorized officer to the
Recovery Officer to recover the dues. Thereafter the employer
cannot contest the amount written in the certificate for recovery
before the recovery officer.
• If any allegation or protest is made by the employer before the
Recovery Officer regarding the certificate of recovery, the same will
not be accepted by the Recovery Officer.
• Once a certificate of recovery has been issued and the officer
issuing the certificate is of the opinion that any mistake has been
made in the writing of the certificate or in the computation of the
amount recovered, he shall send an intimation to the recovery
officer to the effect that Can correct type mistake.
• If the certificate of recovery is withdrawn or canceled by the
authorized officer or if any amendment is made in it, then the

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information will be given by the authorized officer to the recovery

officer
Provision To stop or modify the proceedings under the certificate.
• If time has been sought by the employer to pay the amount to be
recovered and that time is accepted by the officer issuing the
certificate, then in such a case the recovery officer shall not recover
the outstanding amount till that time. Can
• If an appeal is filed by the employer against the order of the amount
demanded, then in such a situation the amount demanded by the
recovery officer will not be recovered till the appeal is pending.
• An appeal is made against the amount demanded by the employer
and if the amount demanded is reduced in the decision given in the
appeal, in such a situation the certificate will be amended by the
authorized officer or that certificate will be withdrawn. .

Employee Benefits Under

ESIC Act.
Medical benefits.
Medical benefits are given to the member employee and his family
members as per the provisions made under the ESIC Act.
Sickness benefit
According to the provisions made under the ESIC Act, if any institution
and company is covered under the ESIC Act and all the employees
working in that institution or company under which the Act is covered,
they will get the facility of sickness benefit under the ESIC Act. it occurs.

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Sickness benefit can be given to the employee for 91 days under the ESIC
Act. Sickness benefit given to employees. At least 78 days of ESIC
contribution is required to avail Employee Sickness Benefit under the
ESIC Act.
Disability benefits.
Under the Act, disability benefits are given to the employees under this
Act.

Temporary Disability Benefit:-

• Temporary disability means a disability by which a person suffers
from disability for a temporary period or for some time and after
some time that disability goes away.
• According to the provisions made under the ESIC Act, if an
employee suffers any kind of injury while in service, due to which
he suffers from any temporary disability, then in such a situation
temporary disability benefit will be given to that employee. The
employee will continue to receive temporary disability benefits for
as long as his temporary disability continues. The employee will be
able to get the benefit of temporary disability from the first day of
his employment. That is, if an employee suffers any kind of injury
while doing employment related work on the very first day of
joining the job in any company or institution and he suffers from
temporary disability, then he will get the benefit of temporary
disability under ESIC Act. can be obtained.

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• As per the provisions made under the ESIC Act, the employee will
receive 90% of his monthly salary as temporary disability benefit.

• The employee has to get the temporary disability certified by the

Medical Officer to get the temporary disability benefit under the
ESIC Act.

Permanent Disability:-
• Permanent Disability means a disability in which if a person is
suffering from a disability and he remains permanently affected by
that disability for life.
• According to the provisions made under the ESIC Act, if an
employee suffers any kind of injury while working during the
employment period and that person suffers from permanent
disability due to that injury, then in such a situation that person will
be punished under the ESIC Act. Permanent disability benefit will
be available.
• The employee will get the benefit of permanent disability from the
first day of his employment. That is, if on the very first day of joining
the job in any company or institution in an employee, if he suffers
any kind of injury while doing employment related work and he
suffers from permanent disability, then he will get the benefit of
permanent disability under ESIC Act. can be obtained.
• Under the ESIC Act, the employee will get permanent disability
benefit for life.
• Under the ESI Act, there is a provision to give 90% of the monthly
salary to the employee as permanent disability.

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• The employee will have to get the permanent disability certificate

by the Medical Officer to get the permanent disability benefit under
the ESIC Act.

Maternity benefit
• According to the provisions made under the ESIC Act, the facility of
maternity benefit has been provided to the women employees
covered under this Act.
• If a female employee who is a member of ESIC and she is pregnant,
she is provided with the facility of maternity benefit under this Act.
For how many days will the maternity benefit be received?
• According to the provisions made under this Act, there is a
provision to give maternity benefit of 26 weeks to the female
employee. Maternity benefit to women employees has been
increased from 12 weeks to 26 weeks.
Eligibility to receive maternity benefits.
• As per the provisions made under ESIC Act for any female
employee, it is mandatory for any female employee to deposit
contribution for at least 70 days in one or two contribution periods
to get maternity benefits under ESIC Act.
What is meant by contribution period?
• As per the provisions made under the ESIC Act, the period of
contribution of any employee is counted twice in a year, the first

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period of ESIC contribution is between 1st April to 30th September

and the second period of contribution is from 1st October to 31st
March. it occurs. Maternity benefit given to the employee under
ESIC is given on the basis of his monthly contribution made during
these contribution period. If the contribution period of a female
employee or both the contribution period together is more than 70
days, then that woman employee will be entitled to maternity
benefit under the ESIC Act.
Dependent benefit
• According to the provisions made under the ESIC Act, if the insured
employee dies in the course of employment, then dependent
benefits are given to his dependents, under this dependent
benefits are given in the form of pension to the dependents of the
insured deceased employee. 90 percent of the employee's monthly
salary will be given as pension to the dependents of the deceased
insured employee.
Which of dependents of the deceased insured employee will get
pension under the dependent benefit
Widow wife
• The widow wife of the deceased insured employee will get the
pension benefit. If the deceased employee is married, then his
widow wife will get pension as dependent benefit. His wife will get
3/5 of the pension amount as pension.
Widow Mother
• If the deceased employee has a widowed mother, then the
dependent benefit will be given to the mother of the deceased

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insured employee. The mother of the deceased employee will get

2/5 of the pension amount as pension.

Children of the deceased insured employee

• Dependent benefit will be given to the sons of the deceased insured
employee. The sons of the deceased employee will get 2/5 of the
pension amount as pension. Dependent benefit will be given to the
son of the deceased employee only till they complete the age of 25
years. In this way the sons of the deceased insured employee will
not get pension benefits after the age of 25 years.

• If the insured is the daughter of the deceased employee and she is

unmarried, then her daughters will get the pension benefit.
Daughters of the deceased employee will get 2/5 of the pension
amount as pension. Unmarried daughters of the deceased
employee will get pension benefit only till the age of 25 years. If
unmarried daughters get married before the age of 25 years, then
they will not get pension benefits after marriage.

• If the insured employee has a son or daughter who is not mentally

healthy or is disabled, then in such a situation, he will continue to
get 2/5 of the pension amount of the Matak employee as pension
throughout his life.
Unemployment benefits
• Under the ESIC Act, a provision has been made to provide
unemployment benefits to the member employees.

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• Under this, if a member employee becomes unemployed, then

benefit is given in the form of unemployment allowance.

Eligibility to get unemployment allowance benefit under ESIC Act

• Under this, the benefit of unemployment allowance will be given to
the same employee whose ESIC contribution has been deposited
for the last 2 years, so to get the benefit of unemployment
allowance under ESIC, the contribution of 2 years has to be
deposited by the eligible employee.
For how long do you get unemployment benefits?
• Employees can get the benefit of unemployment allowance for a
maximum period of 24 months or up to 2 years. This
unemployment leaf benefit under the ESIC Act can be available to
the member employee only for 24 months or 2 years from the date
of becoming unemployed.
How much do you get unemployment benefits?
• According to the provisions made under this tea, the benefit of
unemployment allowance is given to the employee on the basis of
the average contribution made by him till 4 months before the date
on which the employee becomes unemployed. 50% of the average
of 4 months deposit contribution is given as unemployment
allowance for 1 year and 25% amount is given as unemployment
allowance for the next 1 year.
Unemployment allowance on getting a new job.

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• If a new job is obtained by the employee within 2 years from the

date of his becoming unemployed, then the unemployment
allowance under which he is getting will stop.

Under what circumstances the

accident will be considered in
the sequence of Employment
According to the provisions made under the Act, if an accident occurs in
the course of work related to the employment of an employee and the
accident occurred in connection with the work related to the
employment and even if no evidence is available about it, it will be
presumed that he The accident happened in the course of some work
related to course of employment. Its provisions have been made under
Section 51 of the ESIC Act
Breach of Regulations
• If any work is done by the employee in contravention of any rules
for the time being in force and if the accident occurs in the course
of that work and if the work done by the employee was in
connection with trade or business or if the work was done for any
purpose of employment the accident shall be deemed to have been
connected with employment and occurred in the course of
employment

• If any work is done by the employee in contravention of the

instructions given by the employer or on behalf of the employer

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and if that work is related to the trade or business of the employer

and if an accident occurs in the course of that work, it is The
accident will be considered in the course of employment
Accidents occurring during transport.: Section 51
• According to the provisions made under section 51 of the Act, if an
accident occurs while traveling in the transport of the employer, it
will be deemed that the accident occurred in the course of
employment.

• If during the journey performed by the employee in the employer's

transport, the vehicle being transported is being driven by the
employer's driver or by any person contracted on behalf of the
employer to drive the vehicle. or is driving a vehicle with the
permission of the employer. In such a situation, if there is an
accident of the vehicle, then that accident will be considered as an
accident that happened in the coures of employment.
Accidents occurring during emergency section 51D
• According to the provisions made in Section 51D of an Act, if an
accident occurs in the premises of employment or near the
premises of employment while working, then that accident shall be
deemed to have happened in the course of employment there. If
the work is done by the employee to help the employees injured in
the accident. Or if it is done to save the employees trapped in the
accident, then that accident will be considered in the course of
employment.

• Accident occurring on the way to or from the place of

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work: Section 51E

• As per the provisions made under section 51E of the ESIC Act, if an
employee meets with an accident while on his way to work. So it
will be considered that the accident happened in the course of
Emplyment

• or while going from work to his residence, if an accident occurs, it

shall be deemed to have occurred in the course of employment.

• In order to prove that the accident occurred in the course of

planning, it is necessary that

• It is necessary to establish the relationship between the

circumstances of the accident, the time of the accident and the
place of the accident and the planning.

Duty of Employee
Section 63 of the provision relating to loss or compensatory benefit to
be received by the employee under any other law
• According to the provisions made under Section 53 of the ESIC Act,
if any insured employee receives any bodily injury due to
employment, that employee shall be entitled to any kind of
compensation under the Workmen's Compensation Act 1923 or
under any other law in lieu of that bodily injury. Cannot receive
compensatory benefits.
Provision regarding obtaining other similar benefits.

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• According to the provisions made under the Act, if any insured

employee is entitled to receive the benefits received under this Act,
he shall not be entitled to receive similar benefits as provided in
other provisions of the Act.
• Compliance of conditions in relation to obtaining insured benefit or
disability benefit under the ESIC Act by the insured employee
Section 64 of the ESIC Act lays down the conditions which are required
to be fulfilled by the insured employee for availing sickness benefit or
disablement benefit.
• It shall be the responsibility of the insured employee to remain
under the treatment of a doctor in a hospital or any other
institution provided under this Act.
• He will follow the instructions given by the doctor.
• It shall be the responsibility of the insured employee that he shall
not do anything or do anything which may adversely affect his
treatment while receiving medical benefits or convalescence.
• It shall be the responsibility of the insured employee not to leave
the area in which he is being treated by the doctor specified under
this Act without the permission of the doctor or any other officer
specified under the Act.
• It shall be the responsibility of the insured employee to allow
himself to be examined by the Medical Officer appointed under this
Act.

Provision regarding getting the benefit of two

facilities at a time.
• As per the provisions made under section 65 of the ESIC Act

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• An insured employee cannot receive both sickness benefit and

maternity benefit at the same time
• An insured employee cannot simultaneously receive sickness
benefit or disability benefit for temporary disablement
• The insured employee cannot receive maternity benefit or
disablement benefit simultaneously
• If the insured employee is entitled to receive more than one of the
benefits mentioned above, then the insured employee can choose
the benefit he wants to receive.

Cases to be heard by the

Employees' Insurance Court.
• If any question arises as to whether an employee is to be treated as
an employee under the Employees' Insurance Act or not, such
matter shall be heard by the Employees' Insurance Court.

• If any question arises as to whether an employee is liable to make

contributions under the Employees' Insurance Act, such matter
shall be heard by the Employees' Insurance Court.

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• Any question or matter relating to the rate of wages to be paid to

an employee or the average daily wages to be paid to an employee
for the purpose of the Act shall be heard by the Employees'
Insurance Court.

• If any question arises as to whether a person is or is not a principal

employer under this Act, such matter shall be heard by the
Employees' Insurance Court.

• Under the Employees' State Insurance Act, if there is any case

related to the benefits to the employees or the facilities to the
employees, then it will be heard by the Employees' Insurance Court.
As if an employee is entitled to receive the benefits under the Act
or not.

• Any matter related to the amount and time period of the benefits
received by the employee under the ESIC Act is settled by the
Employees' Insurance Court.

• Matters relating to recovery of contributions or payments to be

made under the ESIC Act or benefits received under the Act or any
other dues between the Principal Employer and the Corporation.

• Matters relating to recovery of contributions or payments to be

made under the ESIC Act or benefits received under the Act or any
other dues between the Principal Employer or the Intermediate
Employer.

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• Matters relating to recovery of contributions or payments to be

made under the ESIC Act or benefits received under the Act or any
other dues between any person and the Corporation.

• Matters relating to recovery of contributions or payments to be

made under the ESIC Act or benefits received under the Act or any
other dues between any person or the Principal Employer or the
Intermediate Employer.

Which claims will be settled by the Employees' Insurance Court.

• The claims mentioned below will be settled through Employees'
Insurance as per the provisions made under the ESIC Act.

• If the contribution to be made under the ESIC Act has not been
deposited by an employer, then the claim related to the recovery of
the outstanding contribution amount from the employer will be
settled by the Employees' Insurance Court.

• If the contribution to be made under the ESIC Act has not been
deposited by an intermediate employer, then the claim related to
the recovery of the outstanding contribution amount from the
employer will be settled by the Employees' Insurance Court.

• If there is a case against the employer under section 68 of this Act,

his claim shall be presented to the Employees' Insurance Court and
disposed of by the Insurance Court.

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• If any person avails the benefits under this Act and that person is
not entitled or is not eligible to receive the benefits under the ESIC
Act, then the cost of those benefits shall be recovered from that
person. Or the claim regarding the recovery of the amount will be
presented in the Employees' Insurance Court and the claim will be
settled by the Employees' Insurance Court.

• If there is any case in relation to the recovery of the benefits or

benefits received under this Act, its claim will be presented in the
Employees' Court and it will be settled by the Employees' Insurance
Court
Claim in Employees' Insurance Court in respect of arrears of
contribution.
As per the provisions made under the ESIC Act, if there is any
dispute between the principal employer and the Employees'
Insurance Corporation regarding the dues or any other dues. If the
same dispute is raised by the principal employer in the Employees'
Insurance Court, then the principal employer will have to deposit
50% of the amount to be paid by the corporation to the Employees'
Insurance Court before raising this dispute in the Employees'
Insurance Court. .

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Provisions for appeal against

the decision or order given by
the Employees' Insurance
Court:- Section 82
• According to the provisions made under Section 82 of the ESIC Act,
if any decision is given by the ESIC Insurance Court in any case, then
no appeal can be made against that decision.

• An appeal against the order of the Employees' Insurance Court can

be made only in the following circumstances.

• In which court an appeal can be made against the order or decision

given by the Insurance Court?

• If any substantial question of law is involved in the order or decision

given by the Employees' Insurance Court in any case, then in such a

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situation, the High Court can be filed against the decision given by
the Employees' Insurance Court. Appeal can be made.

What is the time period for filing an appeal against the order?
• If an appeal is made in the court against the decision order given by
the Employees' Insurance Court, then it can be filed in the High
Court within 60 days from the date of the decision given by the
Employees' Insurance Court.
Stay on payment during the pendency of the decision of the Employees'
Insurance Court or appeal against the country: Section 83
• According to the provisions of Section 82 under the Employees'
Insurance Act, if an appeal is filed in the High Court against the
decision or order given by the Employees' Insurance Court, then in
such a situation the appeal against the order or decision given by
the Employees' Insurance Court If any amount has been ordered to
be paid in the order of judgment passed, such amount shall not be
paid during the pendency of an appeal to the High Court against
such order or on such appeal. During the pendency of the hearing
in the High Court.

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The Employee State Insurance (

General) Regulations 1950
Contribution Period
• As per the provisions made under Rule 4 of ESIC, the period of ESIC
contribution has been fixed twice in a year.
• The period of first contribution has been fixed from 1st April to 30th
September.
• The second period has been scheduled from October 1 to March
21.
• In this way, two periods of contribution have been fixed in 1 year.
Duration of ESIC benefit.
• The period for availing benefits under the ESIC Act has also been
fixed at two in a year.
• For the contribution period from 1st April to 30th September, the
benefit period will be from 1st January to 30th June.

Explanation: On the contribution made by the insured employees

between 1st April to 30th September, those employees can avail
the benefit for the period between 1st January to 30th June.

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• Similarly, this ESIC benefit can be availed by the insured employees

for the period between 1st July to 31st December on the
contribution made between 1st October to 30th March.
Provision for registration of factory or establishment.
• As per the provisions made under Rule 10B, the factory or
establishment to which the ESIC Act applies, will have to get
registered under the ESIC Act.
• On registration of the factory or establishment under the ESIC Act,
a code number is given to the employer which is called Employer
Code Number.
• Any establishment or factory to which this Act applies, within 15
days from the date of coming into force of the Act, that factory or
establishment will have to apply for registration before the
concerned ESIC Commissioner.
• Form No. 01 will be filled by the employer for registration under the
ESIC Act.
• It is the responsibility of the employer to furnish all the information
in Form 1 correctly.
• The employer will be instructed by the Regional ESIC Commissioner
to complete the process related to registration under the ESIC Act.
Submit the registration form in hard copy to the ESIC Regional
Office for registration.
• If the concerned ESIC Regional Office is satisfied with the details and
information given in the registration form received from the
employer, the employer will be allotted an ESIC Employer Code
Number.

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• After the employer has received the ESIC Code Number, it is

mandatory for him to follow all the rules under the ESIC Act,
prepare all the documents required under the Act.
Provision regarding filling of declaration form by employee
• According to the provisions made under Rule 11 of the ESIC Act, if
an employee joins a job in a factory or establishment.
• And that employee becomes a member of ESIC for the first time,
then in such a situation a declaration form will be filled by that
employee. The declaration form will be filled by the employee in
the format of Form 1.
Provision regarding sending declaration form to ESIC office
• As per the provisions of the ESIC Act, the declaration forms filled by
the employer on behalf of the employees will be sent to the
concerned ESIC office.
• The declaration form of the employees along with Form No. 3 will
be submitted by the employer to the ESIC office.
• The duplicate copy of Form No. 3 will be given back to the employer
after 10 days along with the Temperally Identity Card.
Allotment of Insurance Number.
• After receiving the declaration form filled by the employee, a
number will be allotted to the employees by the ESIC office.
• Employees will be given back to the employer along with a copy of
Form No. 3 along with the Insurance Number Temporary Identity
Card by the ESIC office.
• It is the responsibility of the employer to deliver the Temporarily
Identity Card to the insured employee.

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• A copy of Form No. 3 will be given back to the employer indicating

the numbers allotted to the insured employees.
Registration of family members of the insured employee.
• Medical benefits will be given to the family members of the retired
employee as per the provisions made under the ESIC Act. For this,
it will be necessary to get the family members of the insured
employee registered.
Provision for registration of family members of insured employees has
been made in Rule 15A.
• Employees have to fill Form No. 1A for registration of their family
members.
• Form number 1A of the insured employees will be filled by the
employer and after taking the signatures of the employees on it,
those forms will have to be submitted to the ESIC office within 10
days.
Change in family members.
• Provisions relating to intimation of change in the family members
of the insured employee have been made in Rule 15B.
• If there is any change in the family members of the insured
employee, the insured employee will have to inform the employer
within 15 days.
• After the employer receives information about any change in the
family members of the insured employee, it will have to be
reported in Forum No. 2 to the ESIC office within 10 days.
Identity card of the insured employees.

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Under Rule 17, provisions related to the identity card of the insured
employees have been made.
• Identity cards will be given to each insured employee in the format
of Form No. 4 by the ESIC office.
• The insurance number of the insured employee will be written in
this identity card and the names of the family members of the
employee who will be entitled to receive medical benefits under
the ESIC Act will be written in that card.
Identity cards will be given to the employer by the ESIC office.
• The identity card will be distributed by the employer to the insured
employees. This identity card will be distributed only to those
employees who have completed 3 months working in the job.
• The employees who leave the job before 3 months will not be given
this identity card. The card employer of those employees will again
submit it to the ESIC office.
Employment certificate.
• Provisions have been made regarding the employment certificate
to be given to the employees under Rule 17A.
• If the insured employee needs to get any kind of medical benefits
and if the Temperally Identity Certificate has not been issued to that
insured employee, then in such a situation the employment
certificate will be issued by the employer to that insured employee.
• If the temporary identity card is lost by the insured employee, then
in such a situation also the employment certificate will be issued to
the insured employee by the employer.
Provision made in case of loss of identity card.

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• Under Rule 18, provisions have been made regarding the loss of
identity card.
• If an insured employee loses the ESIC Identity Card, in such a
situation it will be reported by the insured employee to the
concerned ESIC branch office.
• After receiving such a report from the employee, a new identity
card will be issued to the insured employee by the ESIC office.
Provisions relating to return of contribution.
• Under Rule 26, provisions have been made regarding filing of
returns of contribution of insured employees.
• A return detailing the amount of contribution deposited on behalf
of the insured employees shall be filed by each employer in the
format of Form No. 5 for each contribution period.
• This return has to be submitted to the concerned ESIC office within
42 days after the end of the contribution period.
• If a factory is closed permanently, then within 21 days, the
employer will have to submit the return of ESIC contribution to the
ESIC office.
• The return of contribution has to be submitted to the ESIC office
within 7 days of the ESIC return being sought by the concerned ESIC
office.
Time for payment of contribution.
• Under Rule 31, provisions have been made regarding the time for
depositing the amount of contribution.
• Under the ESIC Act, it will be the responsibility of every employer
to deposit the amount of monthly contribution of the insured

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employees working under him in the ESIC office within the next 15
days from the last day of the month.
• The employer has to deposit the contribution amount of each
month by the 15th of the following month.
Provision regarding interest to be charged if contribution amount is not
deposited on time.
• If the amount of ESIC contribution is not deposited by the employer
by the 15th of the next month, then he will have to pay interest on
the amount of contribution. Its provision has been made in Rule
31A.
• Interest at the rate of 15% per annum will have to be paid on the
amount of delayed contribution.
Provision of penalty on the amount of outstanding contribution or any
other outstanding amount on the employer under the ESIC Act.
• If an employer does not deposit the amount of contribution or any
other amount to be made under the ESIC Act, then penalty will be
imposed on the employer. Its provision has been made in Rule 31C.
Penalty will be levied as per the following rates.
• If the period of outstanding amount is less than 2 months, then
penalty will be imposed at the rate of 5% per annum.
• Penalty at the rate of 10% will be levied if the period of overdue is
more than 2 months and less than 4 months.
• Penalty at the rate of 15% will be levied if the period of overdue is
more than 4 months or 4 months and less than 6 months.
• If the period of outstanding amount is more than 6 months, then
penalty will be levied at the rate of 25%.

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Appeal against penalty or interest

• The employer can appeal against the penalty imposed against him
if he so desires.
• Appeal can be made to Commissioner, Additional Commissioner,
Regional Director and Join Director.
Provision regarding refunding the amount back to the employer.
• As per the provisions made under rule 31E.
• If an appeal is filed by an employer against the amount of interest
or penalty imposed on him and the decision in that appeal is in
favor of the employer, then the entire amount deposited by the
employer to the Corporation or any part thereof, as per the decision
will be returned.

Maintaining register of employees.

• As per the provisions made under rule 32, it shall be the
responsibility of every employer to maintain a register of
employees working in his factory or establishment.
• This register will be maintained by the employer in Form No. 6, this
format.
• A register shall be maintained by the immediate employer or
contractor of all the employees working under him and this register
shall be submitted by him to the principal employer.

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• The register of employees shall be kept safe by the employer for the
next 5 years from the day on which the last entry was made in that
register.
• If an employee wishes to see the entry made in the register, the
employer shall give a reasonable opportunity to that employee to
see the register once in a month.
Provision regarding refund of any amount deposited by the employer
by mistake.
• If the excess amount is deposited by mistake on behalf of the
employer, then provisions have been made under Rule 40 in this
regard.
• If any amount of contribution has been deposited by any person by
mistake under this Act, then that amount will be returned to that
person by the corporation along with interest.
• For this, that person will have to apply in the ESIC office.
• The employee must apply for it before the start of the benefit
period.
• If the amount of contribution is deposited by any person at a rate
higher than the prescribed rate, then in such a situation the amount
deposited by the corporation will be returned without interest.
• The employee must apply for it before the start of the benefit
period.
Failure to produce medical certificate.
• As per the provisions made under rule 64, if the medical certificate
is not submitted by the insured employee, then the sickness benefit
and temporary disability benefit given to the insured employee will
be stopped.

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• If the first medical certificate is not submitted by the insured

employee to the ESIC branch office within three days from the date
of issue. Sickness benefit and temporary disability benefit to the
insured employee will be stopped.
• Subsequent medical certificate if not submitted to ESIC branch
office within 14 days from the date of issue. Sickness benefit and
temporary disability benefit to the insured employee will be
stopped.
• If the concerned ESIC office is satisfied about the delay in
submission of the medical certificate by the insured employee,
relief may be granted to the insured employee.
Provisions relating to reimbursement of expenditure incurred on medical
treatment.

Provisions relating to reimbursement of expenditure incurred on

medical treatment.
• As per the provisions made under rule 96A.
• If the medical practice is expend for the treatment of the insured
employee or any member of his family, the amount of medical
expenses will be reimbursed by ESIC.
Reduction in facilities provided to the employees.
• According to the provisions made under Rule 97, if any benefit is
being given by an employer to the insured employees working in
his factory or establishment, which is similar to the provisions
under the ESIC Act, then the employer employees May reduce the
number of competitions offered.

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Provisions regarding reduction in sickness or temporary disablement

benefits.
• According to the provisions made under Rule 99, if the following
compliances are not fulfilled by the insured employee, then the sick
benefit and temporary disability benefit given to the insured
employee will be stopped
• If the first medical certificate is not submitted by the insured
employee to the ESIC branch office within three days from the date
of issue.
• Subsequent medical certificate if not submitted to ESIC branch
office within 14 days from the date of issue. Sickness benefit and
temporary disability benefit to the insured employee will be
stopped
• If the concerned ESIC office is satisfied about the delay in
submission of the medical certificate by the insured employee,
relief may be granted to the insured employee. Sickness benefit and
temporary disability benefit given to the insured employee will be
stopped

The Employee State Insurance

General Regulations 1950
Contribution Period
• As per the provisions made under Rule 4 of ESIC, the period of ESIC
contribution has been fixed twice in a year.
• The period of first contribution has been fixed from 1st April to 30th
September.

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• The second period has been scheduled from October 1 to March

21.
• In this way, two periods of contribution have been fixed in 1 year.
Duration of ESIC benefit.
• The period for availing benefits under the ESIC Act has also been
fixed at two in a year.
• For the contribution period from 1st April to 30th September, the
benefit period will be from 1st January to 30th June.

Explanation: On the contribution made by the insured employees

between 1st April to 30th September, those employees can avail
the benefit for the period between 1st January to 30th June.

• Similarly, this ESIC benefit can be availed by the insured employees

for the period between 1st July to 31st December on the
contribution made between 1st October to 30th March.
Provision for registration of factory or establishment.
• As per the provisions made under Rule 10B, the factory or
establishment to which the ESIC Act applies, will have to get
registered under the ESIC Act.
• On registration of the factory or establishment under the ESIC Act,
a code number is given to the employer which is called Employer
Code Number.
• Any establishment or factory to which this Act applies, within 15
days from the date of coming into force of the Act, that factory or
establishment will have to apply for registration before the
concerned ESIC Commissioner.

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• Form No. 01 will be filled by the employer for registration under the
ESIC Act.
• It is the responsibility of the employer to furnish all the information
in Form 1 correctly.
• The employer will be instructed by the Regional ESIC Commissioner
to complete the process related to registration under the ESIC Act.
Submit the registration form in hard copy to the ESIC Regional
Office for registration.
• If the concerned ESIC Regional Office is satisfied with the details and
information given in the registration form received from the
employer, the employer will be allotted an ESIC Employer Code
Number.
• After the employer has received the ESIC Code Number, it is
mandatory for him to follow all the rules under the ESIC Act,
prepare all the documents required under the Act.
Provision regarding filling of declaration form by employee
• According to the provisions made under Rule 11 of the ESIC Act, if
an employee joins a job in a factory or establishment.
• And that employee becomes a member of ESIC for the first time,
then in such a situation a declaration form will be filled by that
employee. The declaration form will be filled by the employee in
the format of Form 1.
Provision regarding sending declaration form to ESIC office
• As per the provisions of the ESIC Act, the declaration forms filled by
the employer on behalf of the employees will be sent to the
concerned ESIC office.

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• The declaration form of the employees along with Form No. 3 will
be submitted by the employer to the ESIC office.
• The duplicate copy of Form No. 3 will be given back to the employer
after 10 days along with the Temperally Identity Card.
Allotment of Insurance Number.
• After receiving the declaration form filled by the employee, a
number will be allotted to the employees by the ESIC office.
• Employees will be given back to the employer along with a copy of
Form No. 3 along with the Insurance Number Temporary Identity
Card by the ESIC office.
• It is the responsibility of the employer to deliver the Temporarily
Identity Card to the insured employee.
• A copy of Form No. 3 will be given back to the employer indicating
the numbers allotted to the insured employees.
Registration of family members of the insured employee.
• Medical benefits will be given to the family members of the retired
employee as per the provisions made under the ESIC Act. For this,
it will be necessary to get the family members of the insured
employee registered.
Provision for registration of family members of insured employees has
been made in Rule 15A.
• Employees have to fill Form No. 1A for registration of their family
members.
• Form number 1A of the insured employees will be filled by the
employer and after taking the signatures of the employees on it,
those forms will have to be submitted to the ESIC office within 10
days.

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Change in family members.

• Provisions relating to intimation of change in the family members
of the insured employee have been made in Rule 15B.
• If there is any change in the family members of the insured
employee, the insured employee will have to inform the employer
within 15 days.
• After the employer receives information about any change in the
family members of the insured employee, it will have to be
reported in Forum No. 2 to the ESIC office within 10 days.
Identity card of the insured employees.
Under Rule 17, provisions related to the identity card of the insured
employees have been made.
• Identity cards will be given to each insured employee in the format
of Form No. 4 by the ESIC office.
• The insurance number of the insured employee will be written in
this identity card and the names of the family members of the
employee who will be entitled to receive medical benefits under
the ESIC Act will be written in that card.
Identity cards will be given to the employer by the ESIC office.
• The identity card will be distributed by the employer to the insured
employees. This identity card will be distributed only to those
employees who have completed 3 months working in the job.
• The employees who leave the job before 3 months will not be given
this identity card. The card employer of those employees will again
submit it to the ESIC office.

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Employment certificate.
• Provisions have been made regarding the employment certificate
to be given to the employees under Rule 17A.
• If the insured employee needs to get any kind of medical benefits
and if the Temperally Identity Certificate has not been issued to that
insured employee, then in such a situation the employment
certificate will be issued by the employer to that insured employee.
• If the temporary identity card is lost by the insured employee, then
in such a situation also the employment certificate will be issued to
the insured employee by the employer.
Provision made in case of loss of identity card.
• Under Rule 18, provisions have been made regarding the loss of
identity card.
• If an insured employee loses the ESIC Identity Card, in such a
situation it will be reported by the insured employee to the
concerned ESIC branch office.
• After receiving such a report from the employee, a new identity
card will be issued to the insured employee by the ESIC office.
Provisions relating to return of contribution.
• Under Rule 26, provisions have been made regarding filing of
returns of contribution of insured employees.
• A return detailing the amount of contribution deposited on behalf
of the insured employees shall be filed by each employer in the
format of Form No. 5 for each contribution period.
• This return has to be submitted to the concerned ESIC office within
42 days after the end of the contribution period.

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• If a factory is closed permanently, then within 21 days, the

employer will have to submit the return of ESIC contribution to the
ESIC office.
• The return of contribution has to be submitted to the ESIC office
within 7 days of the ESIC return being sought by the concerned ESIC
office.
Time for payment of contribution.
• Under Rule 31, provisions have been made regarding the time for
depositing the amount of contribution.
• Under the ESIC Act, it will be the responsibility of every employer
to deposit the amount of monthly contribution of the insured
employees working under him in the ESIC office within the next 15
days from the last day of the month.
• The employer has to deposit the contribution amount of each
month by the 15th of the following month.
Provision regarding interest to be charged if contribution amount is not
deposited on time.
• If the amount of ESIC contribution is not deposited by the employer
by the 15th of the next month, then he will have to pay interest on
the amount of contribution. Its provision has been made in Rule
31A.
• Interest at the rate of 15% per annum will have to be paid on the
amount of delayed contribution.
Provision of penalty on the amount of outstanding contribution or any
other outstanding amount on the employer under the ESIC Act.

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• If an employer does not deposit the amount of contribution or any

other amount to be made under the ESIC Act, then penalty will be
imposed on the employer. Its provision has been made in Rule 31C.
Penalty will be levied as per the following rates.
• If the period of outstanding amount is less than 2 months, then
penalty will be imposed at the rate of 5% per annum.
• Penalty at the rate of 10% will be levied if the period of overdue is
more than 2 months and less than 4 months.
• Penalty at the rate of 15% will be levied if the period of overdue is
more than 4 months or 4 months and less than 6 months.
• If the period of outstanding amount is more than 6 months, then
penalty will be levied at the rate of 25%.
Appeal against penalty or interest
• The employer can appeal against the penalty imposed against him
if he so desires.
• Appeal can be made to Commissioner, Additional Commissioner,
Regional Director and Join Director.
Provision regarding refunding the amount back to the employer.
• As per the provisions made under rule 31E.
• If an appeal is filed by an employer against the amount of interest
or penalty imposed on him and the decision in that appeal is in
favor of the employer, then the entire amount deposited by the
employer to the Corporation or any part thereof, as per the decision
will be returned.
Maintaining register of employees.

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• As per the provisions made under rule 32, it shall be the

responsibility of every employer to maintain a register of
employees working in his factory or establishment.
• This register will be maintained by the employer in Form No. 6, this
format.
• A register shall be maintained by the immediate employer or
contractor of all the employees working under him and this register
shall be submitted by him to the principal employer.
• The register of employees shall be kept safe by the employer for the
next 5 years from the day on which the last entry was made in that
register.
• If an employee wishes to see the entry made in the register, the
employer shall give a reasonable opportunity to that employee to
see the register once in a month.
Provision regarding refund of any amount deposited by the employer
by mistake.
• If the excess amount is deposited by mistake on behalf of the
employer, then provisions have been made under Rule 40 in this
regard.
• If any amount of contribution has been deposited by any person by
mistake under this Act, then that amount will be returned to that
person by the corporation along with interest.
• For this, that person will have to apply in the ESIC office.
• The employee must apply for it before the start of the benefit
period.
• If the amount of contribution is deposited by any person at a rate
higher than the prescribed rate, then in such a situation the amount
deposited by the corporation will be returned without interest.

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• The employee must apply for it before the start of the benefit
period.
Failure to produce medical certificate.
• As per the provisions made under rule 64, if the medical certificate
is not submitted by the insured employee, then the sickness benefit
and temporary disability benefit given to the insured employee will
be stopped.
• If the first medical certificate is not submitted by the insured
employee to the ESIC branch office within three days from the date
of issue. Sickness benefit and temporary disability benefit to the
insured employee will be stopped.
• Subsequent medical certificate if not submitted to ESIC branch
office within 14 days from the date of issue. Sickness benefit and
temporary disability benefit to the insured employee will be
stopped.
• If the concerned ESIC office is satisfied about the delay in
submission of the medical certificate by the insured employee,
relief may be granted to the insured employee.

Provisions relating to reimbursement of expenditure incurred on

medical treatment.
• As per the provisions made under rule 96A.
• If the medical practice is expend for the treatment of the insured
employee or any member of his family, the amount of medical
expenses will be reimbursed by ESIC.
Reduction in facilities provided to the employees.

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• According to the provisions made under Rule 97, if any benefit is

being given by an employer to the insured employees working in
his factory or establishment, which is similar to the provisions
under the ESIC Act, then the employer employees May reduce the
number of competitions offered.
Provisions regarding reduction in sickness or temporary disablement
benefits.
• According to the provisions made under Rule 99, if the following
compliances are not fulfilled by the insured employee, then the sick
benefit and temporary disability benefit given to the insured
employee will be stopped
• If the first medical certificate is not submitted by the insured
employee to the ESIC branch office within three days from the date
of issue.
• Subsequent medical certificate if not submitted to ESIC branch
office within 14 days from the date of issue. Sickness benefit and
temporary disability benefit to the insured employee will be
stopped
• If the concerned ESIC office is satisfied about the delay in
submission of the medical certificate by the insured employee,
relief may be granted to the insured employee. Sickness benefit and
temporary disability benefit given to the insured employee will be
stopped

Provisions for Disablement

Benefit
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Procedure for giving information or notice of accident in case of

accident occurring during employment: Section 65
• As per provision made under ESIC Act if it occurs during the course
of employment of an insured workman. And if the worker suffers
any similar damage due to this accident accident, then in such a
situation the notice of the accident will be sent by the worker to
the concerned ESIC branch office in writing or verbally.
• Such notice can also be given on behalf of the workman injured in
the accident by any other workman.
• Notice of an accident may be given by the workman to the
employer or to the foreman or to any other officer who was
supervising the employment of the workman at the time the
accident occurred.
• After the occurrence of the accident, the information about the
accident will also be recorded in the Accident Book by the
employer.
What information will be given in the notice of accident.
The following information shall be given in the notice of accident.
• Information such as the name of the insured worker, insurance
number of the worker, sex of the worker, age of the worker, address
of the worker, job of the worker, department of the worker, shift of
the worker, etc. will be provided therein.
• Information about the date of occurrence of the accident and the
time of occurrence of the accident will also be given in the notice.
• Information about the place where the accident took place will be
given in the notice.

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• Information will also be given in the notice as to what was the cause
of the accident and what kind of damage was caused as a result of
the accident.
• If the notice of the accident is given by a person other than the
workman who got injured as a result, then in that notice the name
of the person, the address of the person and the work of that
person etc. will also be given in that notice.
• Along with the notice, a statement will also be given in which
complete information about what the employee was doing at the
time of occurrence of the accident will be given in that statement.
• The notice shall also give information about the names, their
addresses and their work of those two persons who were present
at the place of accident at the time of occurrence of the accident.
• Apart from this, any other information which is necessary will be
given in the notice.

Maintenance of Accident Book Section 66

• According to the provisions made under the ESIC Act, it is the
responsibility of every employer to keep an accident book in his
factory or establishment, in which information about every
accident that occurs in the factory or establishment, which causes
injury to the workers, is written in the accident book. Mark it clearly.
• It is the responsibility of the employer to preserve such accident
book for the next 5 years from the date of last entry in the accident
book.
Section 67 to record the information of the accident in the accident
book

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• As per the provisions made under the HIC Act, it is the responsibility
of the employer to report the accident in the factory establishment.
Accident report section 68
• As per the provisions made under the ESIC Act, it is the
responsibility of every employer to report the occurrence of an
accident in his factory or establishment to the nearest ESIC branch
office and to the nearest ESIC Medical Officer.
• If the accident is of such a nature that the injury caused to the
worker is likely to result in the death of the worker or is likely to
result in permanent disablement or a permanent bodily injury to
the worker, then in such a case the employer shall report the
accident. Immediately to the nearest ESIC Branch Office or to the
nearest ESIC Medical Officer.
• In other cases, it is the duty of the employer to report an accident
occurring in the course of employment in the factory or
establishment as soon as notice or intimation of the accident is
received or when the accident occurs or to the employer or to the
foreman or to any other officer responsible for the occurrence of
the accident. to the nearest ESIC Branch Office or ESIC Medical
Officer within 24 hours of coming to the knowledge that he was
supervising at the time of
• The accident report will be given by the employer to the nearest
ESIC Branch Office or ESIC Medical Officer in the format of Forum
No. 12.
Provision of first aid facility by the employer Section 69
• As per the provisions made under the ESIC Act, it is the
responsibility of the employer to provide first aid facilities to the

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injured worker if an accident occurs in the factory or establishment,

and if any type of transport vehicle Will provide it if needed. No fee
of any kind will be charged for the first aid provided by the
employer.
• It is the responsibility of the employer to provide any other kind of
information or information related to the accident to the ESIC
office.
• As per the provisions made under the ESIC Act, it is the duty of
every insured employee who is receiving disability benefits to
follow the instructions given by the Regional Office.
• It is the duty of the beneficiary to make himself available for
medical examination.
• If any kind of vocational training or self-establishment program is
conducted for the beneficiary, then be present there for it.
Provisions with reference to Medical Board section 72
• According to the provisions made under this Money Act, if an
accident occurs during the employment and the worker gets
temporary disability due to the accident, then in such a situation,
the application for getting the benefit of disability by the worker
will be filed on the date of occurrence of the accident. Cannot be
submitted after month.
Provisions regarding determination of occupational disease
• According to the provisions made under Rule 74, the following
provision is made regarding the determination of occupational
disease.

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• Whenever there is any question as to whether an illness contracted

by an employee is an occupational illness or not, the same shall be
determined by a Special Medical Board.
The following factors shall be taken into account by the Special
Medical Board while determining whether any disease is an
occupational disease.
• Whether the insured employee is suffering from any one or more
of the diseases specified in the Third Schedule to the Act.
• Whether the disease contracted by the insured employee is likely
to result in permanent disablement
• Any reduction in the income earning capacity of the insured
employee will also be assessed
Application for obtaining benefits for permanent disability.
• According to the provisions made under Rule 76A, if an insured
employee has been declared permanently disabled by the Medical
Board or by the Medical Appellate Tribunal or by the Employees'
Insurance Court, then that employee can apply for permanent
disability benefit. .
• The insured employee has to submit this application to the ESIC
branch office.
• This application will be made in the format of Form No. 14 by the
insured employee.

Process to get dependent

benefits under ESIC Act
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Procedure after death of worker due to employment injury

• If a worker dies in an accident during employment, then the
procedure for reporting is as follows. Section 77
• If a worker dies due to employment injury while in employment,
then report or report to the nearest ESIC branch office or to the
ESIC dispensary or to any hospital in which medical facilities are
available through ESIC.
• If a worker dies during employment at the place of employment,
then the information about the death of the deceased worker will
be given by the employer.
• If the death of the worker occurs at any other place, the death of
the worker shall be intimated or reported by the dependent of the
deceased insured worker from whom the claim is made for
receiving the monetary benefit.
• or the death of the workman may be reported by any other person
who was present at the time of the death of the workman.
Disposal of dead body of deceased employee. Section 78
• If a worker dies due to an employment accident, then in such a
situation his dead body will not be disposed of until the dead body
of the deceased employee is examined by an insurance medical
officer.
• The post-mortem of the deceased worker will also be arranged by
the Insurance Medical Officer.
• If the Insurance Medical Officer is not able to reach the place of
death of the worker even after 12 hours of death, then in such a
situation the certificate will be issued by the Medical Officer who is
available.

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• The information or report of the death of the workman shall also

be given to the concerned police officer in the concerned police
station.
Issue of death certificate.
• If a worker dies due to employment injury caused by employment,
the death certificate will be issued by whichever Insurance Medical
Officer is available at the time of death or who has examined the
deceased worker by the Insurance Medical Officer.
• Or the death certificate shall be issued by the Medical Officer by
whom the deceased employee is treated in the hospital.
• The death certificate of the deceased employee will be given in the
format of Form No. 13.
• No fee of any kind will be charged for issuing the death certificate
of the deceased employee.
• After the death certificate of the deceased employee is issued, a
report of the death will be sent to the concerned Regional ESIC
office.
Procedure for submitting dependent's benefit application.
• Dependent's benefit application in case of death of a worker due to
employment injury during employment Application for
dependent's benefit is submitted by the dependent of the
deceased worker himself or by the legal representative of the
dependent of the deceased worker or by his guardian if the
dependent is a minor. is done.
• Dependent's benefit claim shall be submitted in the format of Form
No. 15.

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• The dependent benefit claim can be submitted to the concerned

ESIC branch office by attaching the necessary documents.
• Such documents shall be submitted along with the dependent
benefit application which verify the following facts
• Documents must prove that the death of the worker was due to
employment injury.
• The documents submitted should prove that the person applying
for dependent benefit is a dependent of the deceased workman.

Age of the person applying for dependent benefit.

The following documents will be accepted for proof of age
• Any certificate showing the date of birth and the place of birth and
the name of the father.
• The original copy of the horoscope which has been prepared
immediately after birth.
• Age certificate issued by a hospital
• Certificate issued by the school showing date of birth, place of birth
and father's name.
• Or any other such document which can be accepted by the Regional
Office.
Issue of notice for dependent benefit section 81
• After receiving the application for financial benefits on behalf of the
dependents of the deceased employee, to check all the facts
related to the application form, to check the cause of death and to

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all those people who are dependents of the deceased worker, they
should be sent to the Regional Office of ESIC. A notice will be issued
to remain present for the process of investigation.
• ESIC Regional Office has not applied for dependent benefits by the
living dependents of the deceased employee, those dependents
will be issued a notice to apply through the Regional Office of ESIC.
• Dependents of the deceased employee have to apply for
dependent benefit within 3 days of receipt of notice from Regional
Office of ESIC.
Notification of dependent benefit decision
• After examining the application for the dependent benefit received
on behalf of the dependents of the deceased employee by the ESIC
Regional Office. Dependents of the deceased employee who have
applied for dependent benefit will be informed in writing by the
Regional Office about the decision taken by the ESIC Regional Office
for dependent benefit.
From which day dependent benefit will be counted
• The dependent benefit payable to the dependent will be counted
from the date on which the deceased employee dies.
Reconsideration of dependent benefit decision.
• On the decision of dependent benefit by ESIC Regional Office on its
own or if any such application is received, it can be reconsidered in
those circumstances.
• If a dependent ceases to be entitled to receive dependent benefit
due to marriage or remarriage or due to death due to age or any
other reason, then the dependent benefit will be reconsidered.

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• If a new dependent of the deceased employee is born, the

dependent benefit will be reconsidered.
• If after taking the decision to distribute the dependent benefit
among the dependents, if any such facts come to the fore which
affect the distribution of dependent benefit, then in such a
situation the decision of dependent benefit will be reconsidered.
• If the decision of dependent benefit is reconsidered by the regional
office of Gati ESIC, then its notice will be sent to the dependents of
the employee. In this notice, the reasons for which the order of
dependent benefit is being reconsidered will also be mentioned.
• Whatever decision is given after reconsidering the dependent
benefit order by the Regional Office of ESIC, information about it
will be sent in writing to the dependents of the deceased employee.

Maternity Benefit
Pregnancy notification
• As per the provisions made under Rule 87, the female employee is
informed about her pregnancy at the concerned ESIC branch office.
The information of pregnancy shall be given in the format of Form
No. 17.
Procedure to claim for getting maternity benefit.
• To claim for maternity benefit before confinement time, the female
employee has to first submit the certificate of her expected
confinement date in Form No. 18 to the concerned ESIC branch
office.
• The female employee has to give Forum No. 18 not more than 15
days before the confinement date.

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• A female employee has to fill Form No. 19 to get maternity benefits.

In this form, the date from which she will not be available for work
will also be indicated by the female employee.
• After the delivery by the female employee, a declaration will have
to be given in which the information about the children given birth
by her will be given.
• If a female employee has a miscarriage, then in such a situation the
application to get maternity benefit will have to be made within 30
days of the miscarriage.
• If a female employee dies after giving birth to a child during
delivery, then in such a situation the application for maternity
benefit will be made by the nominee or legal representative of that
female employee. This application will be made in the format of
Form No. 20. The application for maternity benefit has to be made
within 30 days of the death of the female employee. Its provision
has been made in Rule 89A.
Pregnancy notification
• As per the provisions made under Rule 87, the female employee is
informed about her pregnancy at the concerned ESIC branch office.
The information of pregnancy shall be given in the format of Form
No. 17.
Procedure to claim for getting maternity benefit.
• To claim for maternity benefit before confinement time, the female
employee has to first submit the certificate of her expected
confinement date in Form No. 18 to the concerned ESIC branch
office.

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• The female employee has to give Forum No. 18 not more than 15
days before the confinement date.
• A female employee has to fill Form No. 19 to get maternity benefits.
In this form, the date from which she will not be available for work
will also be indicated by the female employee.
• After the delivery by the female employee, a declaration will have
to be given in which the information about the children given birth
by her will be given.
• If a female employee has a miscarriage, then in such a situation the
application to get maternity benefit will have to be made within 30
days of the miscarriage.
• If a female employee dies after giving birth to a child during
delivery, then in such a situation the application for maternity
benefit will be made by the nominee or legal representative of that
female employee. This application will be made in the format of
Form No. 20. The application for maternity benefit has to be made
within 30 days of the death of the female employee. Its provision
has been made in Rule 89A.
Provision regarding getting maternity benefit for sickness caused to
female employee due to pregnancy.
As per the provisions made under rule 89B.
• If a female employee suffers from any kind of illness due to
confinement, or premature delivery or abortion, then in such a
situation, the female employee will be entitled to maternity benefit
for the illness caused by the pregnancy. Form No. 9 will be filled.
That female employee will also have to produce the necessary
medical certificate for the same.

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Application for Maternity Benefit on Adoption Careful.

• If a child is adopted by an insured female employee as per the
provisions made under rule 89D, then that female employee will
also be given maternity benefit.
• Maternity benefit will be given to the insured female employee on
adoption of a child up to 3 months.
• Application will be made in Form No. 19 for availing maternity
benefit by the female employee. Along with Form No. 19, the
female employee will also have to submit the certificate related to
the adoption of the child.
Notice regarding receipt of salary.
• If application for maternity benefit is made by a female employee
• So that female employee has worked for a single day during the
period for which she has applied for maternity benefits, but she has
not been paid any kind of salary for that work.
• So its notice will also have to be submitted to the female employee
along with Form No. 19.
From what date the maternity benefit will be paid.
• According to the provisions made under Rule 92, the payment of
maternity benefit to the insured female employee will be made
from the day on which the application for maternity benefit has
been made by the district employee.
• Provided that it is necessary that the application for maternity
benefit is made not earlier than 42 days from the date of
confinement.
Female employee to be considered ineligible for maternity benefit.

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• As per the provisions made under Rule 93, an insured female

employee shall be deemed ineligible to receive maternity benefit if
the female employee fails to attend the medical examination
without any valid reason.
• In such a situation, some women employees may be considered
ineligible to receive maternity benefits through ESIC.

Provision of medical benefits.

Medical benefits to family members.
• Provision has been made to provide medical benefits to the
insured employee and the family members of the insured
employee as per the provisions made under the ESIC Act.
• ESIC office form no. In 4, information will be given to those
members of the family who will be entitled to get medical
benefits.

Provision regarding death benefit. 95B

• Intimation of death of the insured employee.
• If the death of the insured employee occurs at the place of
employment, then the employer should inform the ESIC branch
office about the death of the employee.
• In case of death of the insured employee at any other place, the
person who is entitled to receive the funeral amount and by
whom the claim is made shall be intimated to him.
• If any other person is present at the place of death of the insured
employee, it shall be intimated by him.
• The report of the death of the insured employee will be given in
the ESIC branch office.

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Issue of death certificate.

• The deceased insured employee will be examined by the
Insurance Medical Officer and death certificate will be issued. The
death certificate will be given in Form No. 13.
Application for receipt of funeral amount.
• The application for receiving the amount for the funeral of the
insured employee will be made in the format of Forum No. 22.
• This application will be made in the concerned branch office.
• According to this, if the insured employee dies, then a provision
has been made to give an amount of Rs 15,000 for the last rites of
that employee.

Important Legal
Provisions of Gratuity
Act
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Applicability of Gratuity Act.

• The Gratuity Act applies to the whole of India, that is, this Act will
be applicable in all the states of India.
Which establishments and institutions will the Gratuity Act be
applicable to?
• The Gratuity Act will apply to all shops and establishments in any
state where more than ten employees work on any one day during
the last 12 months.

• Even if the number of employees working in any establishment or

institution becomes less than 10 after the implementation of this
Act, in such a situation the Act will still apply to such establishments
and institutions.
Definition of employee in Gratuity Act.
• Under the Gratuity Act, a person will be considered an employee
because he works in an industrial establishment or institution or in
a factory and receives remuneration in return for some work.
Whether the work done by him is physical or mental.
What is considered as continuous service in the Graduation Act?
Under Section 2 of the Gratuity Act, provisions related to
continuous service have been made.

• Continuous service means continuous service rendered by an

employee in a factory or any establishment without any break.

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• If leave is taken by an employee due to illness or accident, such

leave will be considered as continuous service.

• If there is a layoff, strike or lockout in a factory or establishment and

there is no fault or fault of the employee, then in such a situation
the employee's absence from work at the time of layoff, strike or
lockout will be treated as a break in continuous service. Will not be
considered.

• As per the provisions made under the Act, employees working in a

mine are required to work for at least 190 days in a year to count
their continuous service.

• Similarly, for counting the continuous service of employees working

in any factory or establishment other than a mine, it is necessary to
work for at least 240 days in a year.

• If an employee works in an establishment of seasonal nature, then

for calculating the period of continuous service of that employee,
he is required to work for at least 75% of the days for which the
establishment was in operation.

• If the employee is absent from work due to layoff and such layoff is
permitted under the Standing Orders Act, 1946 or under the
Industrial Disputes Act, 1947, the days of layoff will be counted as
continuous service.

• If an employee remains on leave with wages while utilizing the

leave along with the wages received by him, then those days of

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leave of the employee will also be considered as continuous

service.

• If an accident occurs to an employee while working during his

employment or while performing any work related to employment
and in that accident the employee gets temporarily injured and in
such a situation the employee remains absent from work, then the
employee's absence The days will be considered as continuous
service.

• If an employee is a woman and she is on maternity leave, then the

days of maternity leave will be considered in the period of
continuous service of that woman employee.

Provision for payment of gratuity.

Section 4 of the Gratuity Act provides for payment of gratuity.

• According to the provisions made under Section 4 of the Act, if any

employee completes a period of 5 years while working in a factory
or establishment, then in such a situation, according to Section 4 of
the Act, the employee will be given his gratuity amount in the
following situations: will be paid.

• If the employee has attained superannuation during his

employment. then he will be paid his gratuity amount

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• If the employee leaves his job then he will be paid his gratuity
amount.

• If the employee dies due to any accident or gets permanent

disability, then in such a situation the employee will be paid his
gratuity amount.
Payment of gratuity amount on the death of the employee.
• A period of service of 5 years is not mandatory for payment of
gratuity amount in case of death of the employee.

• According to the provisions made under the Act, the requirement

of five years of service for payment of gratuity will not be there in
the event that the employee dies before completing the 5 years
period or the employee becomes permanently disabled. Is.

• That is, in case of death of the employee or his permanent disability,

the amount of gratuity will be paid to the employee even before he
completes 5 years of service.
How will the gratuity amount be paid in case of death of the employee?
• In case of death of the employee, the amount of gratuity will be
paid to the person nominated by him.

• If no person has been made a nominee by the employee, then in

such a situation the amount of gratuity will be paid to the legal heir
of the employee.

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• If an employee becomes disabled and the wages or salary he

receives due to disability is reduced due to his disability, then in
such a situation the gratuity amount will be calculated on the basis
of the wages he was receiving before the disability. .

Gratuity Rules 1972

• According to the provisions made under Rule 3 of the Gratuity
Rules, 1972, the following information has to be given by the
employer to the Gratuity Authority.

• Notice of intimation of establishment or commencement of

establishment or business.

• As per the provisions made under the Gratuity Rules, a notice has
to be given by the employer to the Gratuity Authority within 30
days after the Gratuity Act comes into force. This notice will be
given in the format of Form No. B.
Notice of change in the employer's name, address or the nature of his
business.
• If there is any change in the name of the employer or in the address
of the employer or in the nature of business of the employer, the
employer will have to inform the gratuity authority about such
change.
• The employer will have to give this information to the gratuity
authority within 30 days.
• This information will be given by the employer in the format of
Form No. B.

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Notice of closure of business by the employer.

• If the establishment or its business is closed by the employer, the
employer will inform the gratuity authority about the same.
• This information will have to be given by the employer at least 60
days before the date of establishment or closure of the business.
• This notice will be given by the employer in the format of Form No.
G.
• A notice will be deployed by the employer at the main gate of the
establishment. In this notice, the name and position of the person
or officer by whom any kind of notice will be taken under the
Gratuity Act will be shown.

• This notice will be displayed by the employer in large capital letters.

• This notice shall be displayed by the employer in a language which

is understood by the majority of the employees working in the
establishment.
Provision regarding nomination.
• A nomination form will be filled by the employee as per the
provisions made in Rule 6 under the Gratuity Act. This nomination
form will be filled in 2 copies and given by the employee to the
employer.

• If an employee has been working for 1 year or more than 1 year

before the implementation of the Act, then in such a situation the
nomination form will be filled by the employee within 30 days of
the implementation of this Act.

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• If the employee completes one year of service or after the

implementation of the Act, then in such a situation the nomination
form will be filled by the employee within 30 days from the date of
implementation of this Act.

• This nomination will be filled by the employee in the format of Form

F.

• The information given in the nomination form received from the

employee will be verified by the employer, after which the
employer will give a copy of the receipt of receipt of the nomination
form to the employee. The copy of Form F given to the employee
will be certified by the employer or any of his authorities.

• If an employee does not have any family at the time of filing

nomination, then in such a situation, whenever the employee has
a family, the employee will give its information to the employer in
the format of Form No. G. This form will be filled by the employee
within 90 days of joining the family.

• If any change is made in the nomination form by the employee,

then the employee will have to give a notice of the same to the
employer. This notice will have to be given by the employee in the
format of Form H in 2 copies.

• The nomination form or new nomination form or notice of any

change in the nomination form shall be signed by the employee. If
the employee is illiterate, then in such a situation the thumb

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impression of the employee shall be put on the form. Apart from

this, signatures of two witnesses will also be signed at the forum.

• The nomination form or fresh nomination form or notice given for

alteration in the nomination form filled by the employee will be
effective from the day on which the notice is received by the
employer.
Rules regarding procedure for applying for graduation.
• As per the provisions made under Rule 7 of Gratuity Rules 1972, the
procedure for applying for gratuity is as follows.

• If the employee becomes eligible to receive gratuity, then in such a

situation an application for receiving gratuity can be made by the
employee or by any person authorized on behalf of the employee.

• The application for Gratuity will be made by the employee in the

format I. This application will be made to the employer.

• This application will be made within 30 days from the date of

gratuity payable.

• If the date of retirement of the employee is known, then in such a

situation the employee can apply for receiving gratuity even before
his retirement date.

• If the employee's nominee applies for receiving gratuity, then the

application will be made by the nominee in Form J format. This

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application will be made by the nominee within 30 days from the

date of gratuity. This application will be made to the employer

• If an application is made by the legal heir of the employee to receive

gratuity, then this application will be made in the format of Form K.
This application has to be made within 1 year from the date of
payment of gratuity. This application will be made to the employer.

• Application for obtaining Gratuity can be made by the applicant in

person at the employer's office or can also be made through
registered post.
Provision for notice for Gratuity payment.
• According to the provisions made under Rule 8 under the Gratuity
Payment Central Rules, 1972, if the employer receives an
application for gratuity payment on behalf of the employee or on
behalf of his nominee or on behalf of his legal heir, then such In
such a situation, it will be the responsibility of the employer to issue
a notice for gratuity payment within 15 days of receiving the
application.
If the application for payment of gratuity is admissible.
• If the employer feels that the application for gratuity payment is
acceptable, the employer shall issue a notice of payment of gratuity
to the employee or to the employee's nominee or to the
employee's legal heir.

• This notice will be given in the format of Form L.

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• The amount of gratuity to be paid by the employer will be

mentioned in this notice.

• In this notice, the date fixed by the employer for payment of

gratuity amount will be shown. This date will not be more than 30
days from the date of receipt of the application for payment of
gratuity.

• Form M can be delivered to the applicant by the employer himself

and after obtaining its receipt, or the notice can also be delivered
to the applicant through registered post.
If the application made for payment of gratuity is not acceptable.
• If the application for payment of gratuity received by the employer
is not eligible, a notice will be issued by the employer to the
employee or his nominee or his legal heir.
• This notice will be issued in the format of Form M.
• In this notice, the employer will explain clearly the reasons on the
basis of which the application for gratuity payment cannot be
accepted.
• Form M can be delivered to the applicant by the employer himself
and after obtaining its receipt, or the notice can also be delivered
to the applicant through registered post.
Method of payment of gratuity amount
• As per the provisions made under Rule 9 of the Gratuity Central
Rules 1972, the amount of gratuity can be paid in cash or through
demand draft or even through bank cheque. If the Gratuity amount
is less than ₹1000 then it can be paid through postal order.

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• After paying the gratuity amount, the employer will inform the
details of payment of gratuity amount to the Gratuity Control
Officer.
Process of application to Gratuity Control Officer for giving instructions
for payment of gratuity amount.
• According to Rule 10, in the following situations, an application can
be made by the employee or the employee's nominee or the
employee's legal heir to the Gratuity Control Officer for directing
the employer to pay the amount of gratuity.
• If the application for payment of gratuity is rejected by the
employer.

• If the amount of graduation paid by the employer is less than the

actual Gratuity amount.

• If after receiving the application for payment of gratuity amount, if

notice for payment of gratuity amount is not issued by the
employer within the stipulated time limit.

• An application can be made to the Gratuity Control Officer within

three to 90 days of the dispute arising regarding payment of the
amount of gratuity by the employee or by the employee's nominee
or by the legal heir of the employee.

• If due to any valid reason there is a delay in submitting the

application within the stipulated time limit, then in such a situation
the application will be accepted by the Gratuity Control Officer.

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• This application will be made in the format of Forum N

The process of directing the employer to pay the amount of gratuity.
• According to Rule 11, after receiving the application for payment of
gratuity amount, a notice will be issued to the employer by the
Gratuity Control Officer. This notice will be issued in the format of
Forum O.

• In this notice, the employer or any authorized representative of the

employer will be asked to appear with the relevant documents on
the prescribed day, time and place.

• After hearing the application, the Gratuity Control Officer will take
his decision on record and if the amount for payment of gratuity is
found, it will also be recorded. A copy of the decision of the
controlling officer will be given to both the journalists.

• If the employer remains absent without any valid reason on the

date of hearing, an ex-parte order can be passed by the controlling
officer.

• If the applicant remains absent without any valid reason on the

date of hearing, then in such a situation the application can be
cancelled by the controlling officer.
Date and time of hearing.

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• According to the provisions made under Rule 12, the Gratuity

Control Officer will inform both the parties about the date and time
of the hearing.

Instructions for payment of gratuity amount.

• If there is insufficient amount for payment of gratuity, then in such
a situation the Gratuity Control Officer will direct the employer to
pay the amount of gratuity. This instruction will be given by the
Graduation Controlling Officer in the format of Form R.

• The amount of gratuity will be paid by the employer within 30 days

of receipt of the notice.
• A copy of the notice will also be sent to the applicant.
Application for recovery of gratuity amount.
• If the employer fails to pay the gratuity amount, then an application
for recovery of the gratuity amount can be made by the employee
or the employee's nominee or the employee's legal heir. This
application will be made in Form T format.
Display of Abstract of Graduation Act.
• As per the provisions made under Rule 20 of the Gratuity Act, it is
the responsibility of the employer to display an abstract of the
Gratuity Act at the workplace. This abstract should be presented in
a language that can be understood by the majority of employees
working there
• What is eligibility to receive gratuity.

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A. According to the provision made under the Gratuity the

employee is required to have a job in that companies
establishment for at least 5 years in order to claim the amount
of gratuity from any institute or company.
• How many years of job is required to get gratuity.
A. To get Gratuity, any institution must have a minimum of 5 years
of work in the establishment.
• Formula for calculating gratuity.
A. Gratuity Amount = (15 X last drawn salary X period of
employment) / 26
• What is the time limit for gratuity payment.

A. As per the provisions made under the Payment of Gratuity the

amount of gratuity must be paid within 30 days from the date
of leaving any employee who is entitled to payment of gratuity.
• Gratuity Calculation Formula

A. (Employee's last salary) x(15/26)x How many years worked in

the company
For example, if an employee has worked in a company for 12 years,
then his last basic salary + DA is ₹ 20000, then his gratuity amount
will be calculated as follows

(20000) x (15/26) x 12 = 1,38,461

• While computing gratuity, it is specially kept in mind that if an
employee has worked for more than 6 months, then it will be
counted as 1 year, for example, if an employee has worked in a
company for 5 years. And has worked for 7 months, then it will be

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considered as 6 years and the gratuity of that employee will be

calculated on the basis of 7 years.

Provisions of
Maternity Benefit
(Amended) 2017
• What is the Maternity Benefit Provision
A. The Maternity Benefit Provision has been enacted to provide
maternity benefits to women employees. Does the Maternity
Benefit Act regulate the placement of women employees in any
company. In this Act, provisions have been made to provide
maternity benefit to women employees at the time of maternity.

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• To which companies or establishments does the Maternity Benefit

apply.
A. The Maternity Benefit Provision applies to all companies or
establishments where 10 or more than 10 employees work.

• What benefits have been provided to women employees in the

Maternity Benefit Provision.

A. Under the Maternity Benefit provision, a provision of 12 weeks

was made for women at the time of confinement. The Act was
amended in the year 2017 according to which maternity benefit at
the time of maternity for women employees has been increased
from 12 weeks to 26 weeks. And if the woman has two or more
than two children, maternity benefit will be available only for 12
weeks.
• How many days of maternity leave have been provided to women
employees under the Maternity Benefit Provision.
A. Under the Maternity Benefit Provision, any establishment that
employs 10 or more than 10 employees. In these, a provision
has been made to provide maternity benefit of 26 weeks to the
working woman.
B.
• The Maternity Benefit Provision provides for how many weeks
before the date of delivery to women employees.

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A. Maternity leave cannot be availed before six weeks from the

expected date of delivery.

• The Provision of Maternity Benefit provides for grant of leave to

women employees for how many days from the date of delivery.
A. Earlier the Maternity Benefit made provision for providing
maternity to women employees, but amendments made in 2017 to
the Maternity Benefit Act provide for providing maternity benefit
art to women employees for 26 weeks.

• Qualifying benefits of the Maternity Benefit.

A. Under the Maternity Benefit, women employees are required
to work in that company or establishment for at least 80 days within
1 year to get maternity benefit.

• Procedure for obtaining Maternity Benefit under the Maternity

Benefit Provision.
A. Provision of punishment for not giving priority to women
employees under Maternity Benefit .
• How can a pregnant woman take leave under the Provision of
Maternity ?
A. According to the provisions made under the Maternity Benefit
Act, a pregnant woman can take leave 8 weeks before the expected
date of delivery and the remaining leave can be taken after delivery,
under this type of Maternity Benefit Act, the pregnant woman can
take a total of 26 weeks. Maternity leave can be taken. For this it is
necessary that the woman should not have two children before.

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According to the provisions made under the Maternity Benefit Act,

women who already have 2 children can take maternity leave for
12 weeks.

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