Employees' Provident Funds &MP Act, 1952 ^
Mandates a compulsory contributory provident fund to provide a financial safety net for employees in their post-retirement years.
Applicability Factories in Schedule I and other establishments with 2 0 or more employees. Coverage is
continuous even fi employee count drops.
Wage Ceiling (Membership) Mandatory for employees earning up to #15,000 per month (Basic + DA).
Employee Contribution (EPF) 12% of wages. Entire amount goes to EPF account.
Employer Contribution (EPF) 12% of wages, split into: 8.33% to Pension Scheme (EPS) and 3.67% to EPF.
Pension Scheme (EPS) Funded by employer's 8.33% share. Provides monthly pension after 10 years of service
and attaining age 58.
Insurance Scheme (EDLI) Funded by employer's 0.5% contribution. Provides life insurance benefit up to 87 lakh plus
a bonus.
Penalties Default in remitting employee's deducted contribution: Imprisonment not less than 1year
and a fine of 710,000.
Employees' State Insurance Act, 1948
An integrated social insurance scheme providing protection against sickness, maternity, disability, and death due to employment
injury.
Applicability Non-seasonal factories with 10 or more persons. Can be extended to other establishments
like shops, hotels, etc.
Wage Ceiling (Coverage) Employees earning up to 721,000 per month (*25,000 for persons with disabilities).
Employee Contribution 0.75% of wages. (Exempted fi daily average wage is up to 7176).
Employer Contribution 3.25% of wages.
S i c k n e s s Benefit Cash benefit at 70% of average daily wages for up to 91 days.
Maternity Benefit Paid at 100% of average daily wages for 26 weeks.
Disablement Benefit Paid at 90% of wages for as long as temporary disability lasts. Lifelong pension for
permanent disability.
Payment of Gratuity Act, 1972
Provides a lump-sum payment as a reward for long and meritorious service upon cessation of employment.
Applicability Factories, mines, plantations, and shops/establishments with 10 or more employees.
Eligibility Payable after 5 years of continuous service. This condition is waived in case of death or
disablement.
Calculation days' wages for every completed year of service. Formula: (Last Drawn Salary ×51 ×
Years of Service) / 26.
Maximum Limit The maximum gratuity payable is capped at 720 lakh.
Forfeiture Can be forfeited for riotous conduct or an offense involving moral turpitude. Can be
partially forfeited for causing damage to employer's property.
Payment Timeline Employer must pay within 30 days of it becoming due, otherwise simple interest is
payable.
Maternity Benefit Act, 1961
Regulates the employment of women for certain periods before and after childbirth and provides for maternity benefits.
Applicability Factories, mines, plantations, shops/establishments with 10 or more employees. Does not
apply if ESI is applicable.
Eligibility Must have worked for at least 80 days in the 12 months preceding the expected delivery
date.
Leave Duration (1st/2nd Child) 26 weeks of paid leave (max 8 weeks can be pre-delivery).
Leave Duration (3rd + Child) 12 weeks of paid leave.
Leave for Adoption/Surrogacy 12 weeks of leave for adopting a child under 3 months or for a commissioning mother.
Crèche Facility Mandatory for establishments with 50 or more employees.
Job Protection Unlawful for an employer to dismiss a woman on account of her pregnancy or maternity
leave.
Employees' Compensation Act, 1923
ie foundationalw
m al provcinig statutory compensaoitnot empolyes orf niujreis rodeaht asring outfoandnihte course of
Liability Principle A 'no-fault' liability system. Employer is liable to pay compensation irrespective of
negligence.
Exemption No compensation for injury not resulting in disablement for more than 3 days.
C o m p e n s a t i o n (Death) 50% of monthly wages x Relevant Age Factor, or 81,20,000 (whichever is more).
Compensation (Permanent Total 60% of monthly wages x Relevant Age Factor, or 81,40,000 (whichever is more).
Disablement)
Commuting Accidents Judicial rulings (and now the new Code) have established that accidents during commute
c a n b e c o v e r e d u n d e r the ' d o c t r i n e of notional e x t e n s i o n ' .
2017 A m e n d m e n t Made it mandatory for employers to inform employees of their rights. Increased penalties
for non-compliance to a minimum of 750,000.
Unorganised Workers' Social Security Act, 2008
Aframework to provide social security and welfare to the vast unorganised sector workforce through government-formulated
schemes.
Applicability Enterprises with less than 10 workers. Includes home-based, self-employed, and wage
workers.
Administrative Body Establishes a National Social Security Board (chaired by Union Labour Minister) and State
Social Security Boards to recommend and monitor schemes.
Registration Every unorganised worker aged 14 years and above is eligible for registration to receive a
smart D
I card.
Central Govt. Schemes Responsible for schemes on life/disability cover, health/maternity benefits, and old age
protection (e.g., PM-SYM, PMUUBY, PMJAY).
State Govt. S c h e m e s Responsible for schemes on provident fund, employment injury, housing, education for
children, etc.
PM-SYM Scheme Provides a monthly pension of 73,000 after age 60 for workers with monthly income up to
F15,000.
Building &Other Construction Workers (BOCW) Act, 1996
Provides for the welfare of construction workers by levying a cess on construction costs to fund state-level welfare boards.
Applicability Establis hments with 10 or more buildin g worker s.
C e s s Levy A cess is levied at a rate between 1% and 2% of the cost of construction (currently 1%).
Beneficiary Registration A worker aged 18-60 who has worked for at least 90 days in the preceding 12 months can
register.
We l f a r e F u n d The cess collected is credited to the State Building and Other Construction Workers'
Welfare Board.
Benefits Boards provide benefits like pension, loans for housing, educational assistance for
children, maternity benefits, and medical expenses.
Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
Mandates the compulsory notification of vacancies to Employment Exchanges ot facilitate job matching and collect labour market
data.
Applicability Al public sector establishments and private sector establishments with 25 or more
employees.
Obligation Employers must notify applicable vacancies ot the prescribed Employment Exchange
before filling them.
No Compulsion to Recruit The Act does not compel employers ot hire only candidates sponsored by the exchange.
Returns Employers must submit quarterly (Form ER-I) and biennial (Form ER-Il) returns on
employment.
Penalties Failure to notify a vacancy can lead to a fine up to 7500 for the first offense.
Key Monetary Limits & Benefits
Benefit / Limit Act Amount / Ceiling
Gratuity Ceiling Payment of Gratuity Act ¥2 0, 00 , 000
EDLI Max A s s u r a n c e EPF & MP Act £7,00,000
EPF Wage Ceiling EPF & MP Act ¥ 15, 00 0 / m onth
ESI Wage Ceiling ESI Act 21 ,0 00 / m onth
EC Act Min (Death) Employees' Comp. Act 1 , 20, 000
EC Act Min (PTD) Employees' Comp. Act 1, 4 0,0 00
Maternity Leave Maternity Benefit Act 26 Weeks (1st/2nd Child)
Applicability by Employee Count
Act Minimum Employee Threshold
EPF & MP Act 20+
ESI Act 10+
Payment of Gratuity Act 10+
Maternity Benefit Act 10+
BOCW Act 10+
Employment Exchanges Act 2 5 + ( Priva te S e c t o r )
Unorganised Workers' Act < 10