What is ESI and LWF?

In this article, we will look at the features within Zoho Payroll that help you with the four statutory regulations: Employees' Provident Fund (PF), Professional Tax (PT), Labour Welfare Fund (LWF), and Employee State Insurance (ESI).

What is an ESI payment?

Simply speaking, an ISO—or Independent Sales Organization—is a third-party payment processing company that is authorized to handle merchant accounts for businesses. ISOs have relationships with acquiring member banks, and this allows them to provide merchant services to their customers.

How is ESI calculated?

Computation of ESI

Currently, the employee contribution is 0.75% of wages paid/payable, and employer contribution is 3.25% of wages paid/payable. Let us say Mr Hard Working with wages of Rs. 18,000 work in a factory unit.

How is ESI and PF calculated?

Conclusion-PF and ESI calculation scenario as per Indian employee policy.PF calculation under Rs15000 Salary ,12 % deducted except HRA amount and Remaining all 12 % above Rs 15000 salary. ESI Calculation will be 3.25% for those employees whose CTC will be less than Rs 21000.

Is PF and ESI mandatory in India?

At present, registrations under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ('EPF Act') and the Employees' State Insurance Act, 1948 ('ESI Act') are mandatory for companies which employ more than twenty and ten employees, respectively.

Labour Welfare Fund Act (LWF) | LWF क्या है? | LWF benefits | LWF contribution

Who is eligible for ESI?

To be eligible for the ESI scheme, the employee or the worker's monthly salary should not exceed Rs. 21,000 and Rs. 25,000 for people with disability. Does overtime work done by the worker or employee included in the income limit for ESI coverage?

How can I withdraw my ESI amount?

All one needs to do is activate his UAN and then Login to the “Online withdrawal” portal. The amount to be withdrawn can be entered, and status can be checked on the same portal.

How is LWF calculated in salary?

0.2% of the salary or any remuneration subject to a limit of Rs. 25/-. The rate of contribution from an employer is twice the amount contributed by such employee.

Is ESI deducted every month?

Collection of ESI Contribution

An employer is expected to deposit the combined contributions within 15 days of the last day of the Calendar month. The payments can be made online or to authorized designated branches of the State Bank of India and some other banks.

Is ESI compulsory?

Staying compliant with Employee State Insurance (ESI)

ESI is mandatory for employers who have employees working in a non-seasonal factory with more than 10 employees, but only for employees who are earning less than ₹21,000 per paycheck.

What is LWF in salary slip?

Introduction To LWF

Labour Welfare Fund is succour in the form of money or necessities for those in need. LWF is a statutory contribution managed by every state authority. It helps labourers improve their working conditions, providing social security and raises their standard of living.

Do we get ESI money back?

Hi, Please note that the amount is paid to ESIC for a service and it is not a depository fund like PF. So there is no question of getting the money back. You can avail medical services for yourself,spouse,children and dependant parents from ESIC apart from other facilities.

What is the minimum salary for ESI?

Employees whose monthly wages are Rs 21,000 or below are covered under the ESI Act. The wage limit for coverage under the Act had been increased from Rs 15,000 per month to Rs 21,000 in December 2016.

What is the maximum salary for ESI?

The existing wage limit for coverage under the Act effective from 01.01. 2017 is Rs. 21,000/- per month (Rs. 25,000/- per month in the case of Persons with Disability).

What is ESI return?

What is ESI return? ESI registered businesses have to file ESI returns on monthly basis. It is governed under the ESI Act, 1948; ESIC (Employees' State Insurance Corporation) which provides benefits to employees in the event of their sickness, death, disablement, injury, etc.

Why LWF is deducted?

Labor Welfare Fund (LWF) is administered by the Ministry of Labor, government of India, in order to provide social security to unorganized labors. It is a deduction made from the employee's wages as well as from the employer.

Is LWF contribution mandatory?

Labour welfare fund is a mandatory contribution managed by individual state authorities. The State Labour Welfare Board sets the applicability limits, rates and frequency of the contribution for any establishments.

Is LWF applicable to all employees?

In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories. The Labour Welfare Fund Act is not applicable to all category of employees working in the establishment.

Can I continue ESI after leaving job?

In order to reactivate your ESI Pehchan card, you need to give your old ESIC number to your new employer. Your ESIC card will be reactivated when your new employer pays your ESIC contribution.

Can I claim ESI for my wife?

wife can avail medical benefit from ESI hospitals/dispensaries. I.P. can also claim transport allowance if his residence is far away to ESI Hospital at the time of delivery. To get medical benefit it is necessary that her name is included in ESI card.

How do I claim ESI benefits?

Claims to get the relief can be made online at website www.esic.in along with submission of the physical claim with an affidavit, photocopy of Aadhaar Card and Bank Account details to the designated ESIC Branch Office by post or in person.

What is the salary limit for ESI 2021?

The limit is applicable to those establishments having 10 or more employees who draws a monthly wages up to Rs. 21,000 earlier it was 15,000(Rs. 25,000 if the Person is disable) has to mandatorily register itself with the Employees' State Insurance Corporation(ESIC ) and provide the ESI benefits to its employees.

How much PF is deducted from salary?

You and your employer need to transfer 10% or 12% of your basic salary to contribute towards EPF. However, if you are a woman, you only need to contribute 8% of your basic salary for the first three years. During this period, your employer's EPF contribution will remain 12%.

What are the benefits of labour welfare fund?

Some of the major benefits of labour welfare are: (1) Improved Industrial Relations (2) Increase in the General Efficiency and Income (3) High Morale (4) Creation of Permanent Labour Force (5) Improvement in the Mental and Moral Health (6) Change in the Outlook of Employers and (7) Social Benefits.