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The Employees Provident Funds and Miscellaneous Provisions Act, 1952

 

You may know it as that annoying, elusive chunk of your monthly salary that you aren’t able to spend. So what is it, and where does it go? Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organization of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO. It’s a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement.

 When you start working, you and your employer both contribute 12% of your

basic salary (plus dearness allowances, if any) into your EPF account .  The employer contribution to your EPF is tax-free, and your contribution is tax-deductible under Section 80C of the Income Tax Act.


RATES OF CONTRIBUTION (Provident Fund is calculated from Basic Salary + DA)

Scheme

Employee's Contribution

Employer's Contribution

Employee Provident Fund (EPF) - A/C 1

12%

3.67%

Employee Pension Scheme (EPS) - A/C 10

8.33%

Administration Charges - A/C 2

0.85%

Employee Deposit-Linked Insurance Scheme (EDLI) - A/C 21

0.50%


Employees State Insurance Act, 1948   

As the name suggests, it is basically an ‘insurance’ scheme i.e. employee gets benefits if he is sick or disabled. Employees who are drawing wages upto Rs. 15,000 per month come under the purview of the ESI Act 1948 for multi dimensional social security benefits. The rates of contribution are:Employees Contribution : 1.75 % of wages Employers Contribution : 4.75 % of wages Various benefits that the insured employees and their dependents are entitled to are as follows Medical Benefits, Sickness Benefits, Maternity Benefits, Disablement Benefits Dependent Benefits, Other Benefits (like funeral expenses, vocational rehabilitation, free supply of physical aids etc


Maharashtra Profession Tax Act, 1975 

The following states impose this levy in India - Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh. It is a source of revenue for the government. In Maharashtra, this duty is applicable both on individuals and companies as laid down by the guidelines of the Maharashtra Professional Tax Act of 1975. Every individual living in Maharashtra, involved in any business, profession, occupation or employment is legally responsible to pay it and has to get a Certificate of Enrolment from the Professional Authority. Exemptions Person suffering from permanent physical disability. Parents of mentally retarded child. Parents of a child suffering from a physical disability. Persons who have completed the age of 65 years. Central Government Employees.


The Maharashtra Labour Welfare Fund Act, 1953 

Applicability Every employee, including employee through contractor, but not a managerial capacity or supervisor capacity drawing more than 3500/- pm. Contribution Contribution is to be deducted from the salary of employees twice in a year i.e. June & December every year. Penalty The Employer has to maintain the entire record against the fund transaction failure to which there is a penalty. If the employer is not able to produce the records or documents stating details of the fund and employee details, The employer may get a three months term or Rs 500/- fine or both. For subsequent offences, six months term or fine of Rs 1000/- or both.


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