Providend Fund Archives | V J M & Associates LLP (Chartered Accountant)

Providend Fund

PF and ESI
Blog
CA. Kavit Vijay

PF and ESI Payment, Due Date | Late Fees & Interests

There is a legal framework for all organizations to function accordingly when it comes to the welfare of their employees. The treatment is termed as Statutory Compliance in Human Resource (HR), PF and ESI are an integral part of this framework. In India, the Statutory Compliance comprises- wages contributed to  Provident Fund (PF),  Employees’ State Insurance (ESI), etc. 1. An insight into PF & ESI Provident Fund is a self-financed, compulsory contributory fund, which is reusable in the future by the employees.  PF works as a corpus fund that is generated through monthly or regular contributions from the employee and

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Government of India reduces the social security contribution under ESIC Act from 6.5% to 4%
Blog
CA. Kavit Vijay

Government of India reduces ESIC contribution from 6.5% to 4%

The Government of India has reduced the rate of contribution under the Employees’ State Insurance Act (‘ESI Act’) from 6.5 percent of the total wages to 4% of the total wages. The reduced rates are effective 1 July 2019. The Ministry of Labour and Employment of the Government of India has issued a gazette notification int his regard. The ESI Act is one of the social security laws in India which provides for medical, cash, maternity, disability and dependent benefits to the eligible employees covered under the ESI Act. All employees with a gross pay of less than INR 21,000

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Salaries component for PF Contribution
Blog
CA. Kavit Vijay

All Allowances paid as part of salary are subjected to PF contribution

Provident Fund has been one of the foremost drivers of pooling retail savings in India. Every Indian salaried employee is aware of ‘Provident Fund contributions which are deducted from the monthly earnings. There has been a long standing dispute on the salary components which are subject to contribution.  The Supreme Court, vide judgement dated 28 February 2019 in the case of Surya Roshni Ltd. v. Employees’ Provident Fund and Anr [2011 (2) MPLJ 601] held that allowances forming part of salary are subject to PF contribution. With this judgement, it is now a settled position of law that allowances paid

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