THE EMPLOYEES STATE INSURANCE ACT,1948

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1 THE EMPLOYEES STATE INSURANCE ACT,1948 An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. It is mandatory to deduct ESIC of each individual falling Gross salary below RS /- under ESIC Act-1948 The amount is divided into two deductions /contributions. One is of employer and another is from employee. Employer Contribution is 4.75% of the Gross Salary. Employee Contribution is 1.75% of Gross Salary. Total ESIC Contribution is 6.50% of Gross Salary. ESIC Process: Step 1 ESIC number to be allotted by V5 Step 2 TIC (Temporary Identification Card) is issued to ISD s by V5 Step 3 ISD to visit ESIC office with TIC issued by V5 for issuance of Smart Card. Step 4 ESIC office will click photo for smart card and issue a receipt of the same. The Receipt will valid till the photo card is issued by ESIC department. Step 5 ESIC photo card will be dispatched to ISD s residence address or V5 Office. Step 5 Smart card to be used for any medical assistance and valid 24 X 7 Step 6 ISD s can visit any ESIC hospitals with smart card

2 THE EMPLOYEE s PROVIDENT FUND ACT-1952 This act is to provide a kind of Social Security to the employees. The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance. Employees who have been appointed on Basic salary of Rs 6500 or less are covered under the provision of the EPF Act, right from the day of commencement of their work. For more than Rs 6500 (Basic Salary) it s on the discretion of Employee and Employer to come under EPF Act but not mandatory. Percentage of contribution to be deducted from employees part is 12% of Basic Salary. Employer Contribution is 12% of Basic Salary and addition to this 1.61% of Basic Salary is also paid as Admin Charges. So in total 13.61% is Employer Contribution towards EPF. Compliances under EPF Act- Form 2- Declaration form for new joinees- At the time of joining Form 13- Transfer of PF Account- When new recruit Form 11- Declare previous employment details, if any, in Form 11 of the Employer (in this form its mentioned that whether he was Under EPF Act previously or not, if the candidate don t want to come under EPF act he has to chose the option No)

3 THE EMPLOYEE s PROVIDENT FUND ACT-1952 For more details, please Log on & type your PF number(which is mentioned on individual s salary slip). Steps to Follow:- Step 1: Log on to Step 2: Know your EPF balance Step 3: Click here to know the balance Step 4: Select PF office as DELHI Step 5: Select your EPFO Office as DL-Delhi SOUTH Step 6: Enter PF number as _ DS NHP Blank Your Pf Number Step 7: Enter your Name & Mobile number Step 8: Enter submit & SMS will be received on your number.

4 PAYMENT OF BONUS ACT 1965 As Per amendment to the Payment of Bonus Act 1965, all employees drawing a basic salary (Base Pay) of less than or equal to Rs.10,000/- per month are eligible for Bonus. If Basic salary is less then Rs.3500/- then bonus is 8.33 % of the basic. If basic is more than Rs.3500/- then minimum bonus is Rs.292/- per month payable annually. If basic is more than Rs then person is not entitled for bonus. Bonus Payment is as per statutory requirement. This is not a performance bonus or performance linked Incentive. Payment condition of bonus: Employees should work more than 30 days. Bonus is paid once in a year Year start from 01 st of April end on 31 st of March Bonus from April to March(Financial Year)-will be paid on or before 31 st October.

5 ACCIDENTAL INSURANCE POLICY INSURANCE (If applicable) V5 provides Accidental Insurance cover to all its ISD s. Rs. 50/- per month s deducted from the ISD s salary. Death only - 100% Loss of two limbs, two eyes - 100% Loss of one limb or one eye-50% Permanent Total Disablement from injuries other than those named above (PTD-100%) Permanent Partial Disablement specified % of CSI as Detailed in the Policy Temporary Total Disablement 1% of CSI per week up to 104 weeks maximum. How to claim & list of documents required (Required to initiate the claim process in the event of a personal accident claim/ death under the group personal accident policy as per insurance company.) Inform V5 employees (BOM, HR & finance) Duly filled claim form Report of attending doctor as regards to the cause of accident and the nature of treatment taken Investigation reports like lab reports, X-ray reports, MRI Reports and other essential reports for confirmation of injury Police report if any Medical bills corresponding to doctor s prescription where medical extension is covered Medico legal certificate from the attending doctor in case of road accident. Salary slip / salary proof Leave certificate from the employer on letter head. Fitness certificate from the attending doctor. This is non exhaustive list and other documents may be required from case to case basis

6 Medi Claim Policy by Star Health Insurance Company (OPTIONAL) Highlights of the policy are given as under:- 1. No Third Party Administrator, direct in-house settlement claims. 2. Sum Assured : Rs /- 3. Faster and Hassle - Free claim settlement. 4. Cashless Hospitalization wherever possible. 5. Network of more than 4900 hospitals across India. 6. Free expert medical advise over phone *7 toll free helpline. 8.Group Health Insurance is cheaper as compared to individual insurance up to 40%. 9.Visit by on Panel Doctors within 4 hrs of claim lodging to supervise the medical treatment being given to the patient. Every insured employee / member will get a Medi Claim card which can be used for any medical treatment as per the policy. Note: 1.Employee not covered for Medi Claim policy are covered under Accidental Insurance Company. 2. Any employee who wishes to avail the policy can confirm & contact the Reporting head. Premium Amount is for Rs. 250/- per month for individual coverage & the same will be deducted on monthly basis from the salary

7 PROFESSIONAL TAX Professional tax is applicable as per State Govt. rules & is deducted from employees In hand salary.

8 BANK ACCOUNT OPENING FORM- DO S AND DON TS The Kotak Mahindra Bank form is filled by each employee of V5 at the time of Joining. The account is a salary account which has zero balance facility. The bank account is essential as we process the salary/incentives/claims of the employee directly in the account. It also fastens the process and reduce work/coordination as then less salary cheques are issued. Kindly find below the instructions that should be followed while filling the bank form. The Kotak Mahindra bank opening form is mandatory for all new joinees who do not have an existing bank account in Kotak. There are two forms attached with the Bank form which are to be filled by the candidate. The form should be supported by any ID proof with Signatures, i.e, a copy of Pan Card or Driving License or Passport are to be submitted.

9 Those who don t have ID proof with signature can submit Voter I card, Driving License along with an approved format of Affidavit on Rs 20 Stamp Paper (if required format is shared with candidate) Candidate need to put his signature only at marked place. (matching the signatures on the ID proof) should be done on the Page- 2 nd, 5 th, 6 th and Last Page- Form 60(only if Pan card is not submitted). They don t need to fill the form. A dual signature declaration is also signed to avoid any rejection on signature mismatch. Those who have middle name e.g. Ajay Singh Batra and the person ID etc is by name of Ajay S Batra he need to submit Name Declaration form. (if required format is shared with candidate) It is ideal that the candidate should give office address for Kit delivery

10 HR HELPLINE Reach Us..Bring Your Queries & Suggestions Please feel free to revert in case you have an queries at or mail us at Use HR Helpline for below mentioned concerns: 1. Any Letter Pending 2.Concerns related to Salary/ Salary Slips 3. Statutory compliances information 4. Bank Account Status 5. Full and Final Settlement Status. 6. Other HR and Finance Related Issues

11 SALARY DISBURSEMENT Salary disbursement is done by two ways:-- 1. Account Transfer 2. Cheque issued. Note: It is compulsory to open salary account with Kotak bank. Amount of Rs. 250/- is deducted after 60 days of joining if account is not opened against cheque making/ courier charges.

12 FULL & FINAL SETTLEMENT Employee needs to fill the F&F form & submit the same to AM/TL/PE. AM/PE will submit the duly approved & signed F& F form by PM to HR Finance will release the salary within 45 days of resignation.