Each and every person who employed or going to employed need to know some basic rights and benefits before joining to any organisation. This would help him or her to confident and prepare for any future discrepancy or dispute arise.

I am trying to explain few of these in this article.

  • Offer Letter – Before joining to any organization this is right or a candidate to ask for offer letter which should be mentioned clearly , expected date of joining , place of posting , salary or CTC Structure.
  • Appointment Letter : Appointment letter is the very important document which must be given to the employee on or after the joining. In this in details mentioning , designation, date of joining, probation period, leave policy, statutory and other benefits of the company and final CTC structure.
  • PF and UAN Number : If an employee would cover in this benefit (a. if he is pastly a pf member and did not withdraw his pf accumlation or Basic + other allowance up to 15000/- ) he or she has right to know his PF and UAN (Universal Account Number which is unchangable once issued and linked to PF number). from which employee can log in EPFO portal and keep update about his PF balance and monthly deposit update
  • ESIC Number and ESIC Card : If employee’s gross salary not more than 21000/- then he or she eligible for ESIC benefits. and he or she should know his ESIC number and beneficiary card with family details.

Note : this is employee duty to provide all information with family correct for PF and ESIC enrollment. keep in view few things that his and family members name should be same as mentioned in the Aadhar Card, mobile number should be linked with aadhar. Name in the Bank  should be match with aadhar.

EPFO – PF Scheme benefits to the employee

PF is applicable to those  company or firm where 20 or more employees

Applicable to employee salary Basic + other allow 15000/-

Employee Share – 12%

Employer share – 12%

(8.33% in pension fund and 3.67% in EPF fund)

Employer also shared – .5% as Admin Charges

& .5% as EDLI Scheme

Employees Deposit linked Insurance Scheme

In any misshaping employee nominee will get lumsum insurance

benefit between 4.5 lacs to 6. lacs

Also for widow and child a fixed monthly pension , minimum 2500/- per month.

After completion of 10 years of service, from 58 of years of age employee eligible for monthly pension

Also EPF withdrawal

On EPF amount he will get interest from 8 to 8.5% which is the best as compare to any bank FD of savings.

Also employee has options to contribute into  VPF (Vpluntory PF ) on this amount he or she will get interest benefit along with tax exemption benefit.

ESIC – Scheme benefits to an Employee

ESIC coverage mendatory to company or firm has 10 or more employees

Applicable to employee salary Gross Salary 21000/-

Employee Share – .75%

Employer share – 3.25%

  • Medical Care benefits from Day 1, for self and family members
  • ESIC – Maternity Benefits for 26 weeks full medical rest with  average daily wages.
  • Un-employment Allowance – maximum 24 months (2 years)50% 0  to 12months and 13 to 24 months 25% of average wages. due to
  • Involuntary loss of job
  • Permanent invalidity due to non employment injury
  • 40% or more disability

also take medical care benefit for self and family

Also free complete one year skill development course to get another job. with above benefit

Employee can avail ESIC medical Care benefits even after Retirement also for self and spouse with a small contribution of 120/- per annual.

Condition – minimum 5 years in esic member

Sickness benefit – more than 3 days leave. Up to 90 days approx. 3 months salary (70% of average salary)

Dependent Benefits: Monthly Pension to widow and child below 25 years of age up to 90% of wages whole life or till 2nd marriage.

Disablement benefits : employment injury – monthly benefit up to 90% of average salary whole life.

BONUS

Employee is also eligible for statutory Bonus , employer is bound to pay bonus minumum 8.33% (maximum limit is 20%) Bonus limit on salary is restrited to 21000/- and this is payable on 7000/- or minimum wages whichever is higher.

Gratuity

An employee also eligible to get Gratuity if he served continue work in the same organization 5 years and more.

he can get gratuity on full and final settlment and retirement.

Gratuity calculated on current month last basic. its formula is

Basic pay x no. of completed years x 15/26

Gratuity years calculted on rouned off 6 months for example if any employees works for 6 years and 5 months than he is eligible for 6 years gratuity. but if service is 6 years 6 months or above than he is eligbile for 7 years gratuity.

Leave policy

Every organization have their leave policy as well as its regulary bound too to provide certain leaves to employees. which we can distributed as follow :

1. Earned Leaves/Privillige leave – these can be encashed if not availed

2. Causaul Leave – these would be lapsed if not availed

3. Sick Leave – these can be laps after a particular period

Equal Remenuration Act

This act applied to each and every company and firms

Means any company can not do discrimination in terms of

gender to pay less or more to any particular gender for

same nature of work

Minimum Wages 

Each and every employee has right to get at least minimum wages according to their skill level and knowledge this is set for mainly 4 categories

  • un-skilled
  • Semi-skilled
  • Skilled
  • Highly skilled

Each states has set minimum wages for the states and according to work categories

Author Bio

Qualification: Post Graduate
Company: Kashyaps HR and Payroll Solutions
Location: Noida, Uttar Pradesh, India
Member Since: 23 Mar 2021 | Total Posts: 3

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