I.PROVIDENT FUND (PF)
Provident Fund (PF) The object of the act is to provide for the institution of provident funds, and family pension and deposit linked insurance scheme for employees in factories and other establishments. The provisions have been made for the better future of the industrial worker on his retirement and for the dependents in case of his death while in establishment. It is a piece of welfare legislations.
II.EMPLOYEES STATE INSURANCE (ESI)
The promulgation of Employeesâ„¢ State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good medical care to workers and their immediate dependants.
ESI Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employeesâ„¢ contribution and employeesâ„¢ contribution at a specified rate. The rates are revised from time to time. Currently, the employeesâ„¢ contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employeesâ„¢ is 4.75% of the wages paid/payable in respect of the employees in every wage period.