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