Employee Benefits under Indian Labour Laws

1. PROVIDENT FUND (PF) 🏦

1. What is Provident Fund?
   The Provident Fund (PF) is a savings scheme designed for retirement security. Both employers and employees contribute a portion of the employee’s salary to this fund. The employee can withdraw the accumulated amount after retirement or in special cases like medical emergencies or home purchase.
2. Who Needs to Provide PF?
   Any company with 20 or more employees must provide PF benefits to its workers.
3. How much is the Employer Contribution?
   Employers contribute 12% of the employee’s basic salary to the PF account.
4. Why is PF Important?
   It helps employees save money for their future, ensuring financial security after retirement.

2. EMPLOYEE STATE INSURANCE (ESI) 🏥

1. What is ESI?
   ESI is a health and insurance benefits scheme for employees. It provides medical, maternity, and sickness benefits to workers and their families.
2. Who Needs to Provide ESI?
   Companies with 10 or more employees (or 20 in some states) must register for ESI.
3. How much is the Employer Contribution?
   Employers contribute 3.25% of the employee’s salary to the ESI fund.
4. What Benefits Does ESI Provide?
   o Free medical treatment for employees and their families
   o Maternity benefits for women employees
   o Compensation for loss of wages due to sickness or disability

If you’re searching for an ESI Consultant near me, ensure they help you with the registration and compliance process.

3. GRATUITY 🎁

1. What is Gratuity?
   Gratuity is a lump sum payment given to employees as a token of appreciation for their long-term service.
2. Who is Eligible for Gratuity?
   Employees who have worked for at least 5 years in a company.
3. How is Gratuity Calculated?
   Employees receive 15 days’ salary for each completed year of service.
4. Why is Gratuity Important?
   It provides financial support to employees after retirement or resignation.