Statutory Employee Benefits in India- There are a few benefits that are guaranteed to employees under the labor law. These are known as statutory employee benefits.
- Minimum Wages: If an employee is covered by the Minimum Wages Act, the minimum notified wages must be paid to him or her. These vary from one region to another and from one job to another. There is no exemption or proportional reduction in wages for employees who work for a limited number of hours. If a lower payment is made, then the employer can be fined or imprisoned.
- Provident Fund: Provident Fund is an emergency fund, set aside for use by employees. Provident fund is compulsory in some cases and in some cases, the employees can start it voluntarily.
- Compulsory Provident fund: Compulsory provident fund is applicable to employees working in a specific field. Total Provident Fund contribution comes to 21.16% of the salary amount. Of this, 10% is contributed by the employee from his / her salary, another 10% by the employer, and the balance 1.16% is contributed by the Government. The total collection of 20% should be deposited with the PF Commissioner every month. The Fund is administered by the PF Commissioner.
- Voluntary Provident Fund: If Provident Fund Act does not apply to a particular field of work, the employer can still provide this benefit to the employees. This can be done by depositing the desired amount in a Public Provident Fund account in the name of each employee. In such a case, there is no requirement of a fixed percentage or amount that must be contributed. The amount can therefore be decided and fixed internally. However, it is best to make the contribution regularly, at least on an annual basis.
Become Vskills Certified Compensation and Benefits Manager. Learn the module “Statutory Employee Benefits in India”. Try the free practice test!
Apply for Compensation and Benefits Certification Now!!
http://www.vskills.in/certification/Certified-Compensation-and-Benefits-Manager
