DIMAPUR — The commissioner and secretary of Labour and Employment, Sushil Kumar Patel, has stressed on the necessity to sensitise on the importance of employment provident fund (EPF) and employees state insurance (ESI) to ensure that both employers and employees are aware of their rights, obligations and benefits under those social security schemes.
Speaking at the sensitisation programme on employees’ provident fund (EPF) and employees’ state insurance (ESI) held at the conference hall of Labour Commissioner's Office in Kohima on Friday, Patel mentioned that EPF is one of the largest security schemes in the country. Stating that most of the people in Nagaland are unaware of the scheme, he said it was necessary to sensitise on EPF and ESI to ensure that both employers and employees are aware of their rights, obligations and benefits, stated a DIPR report.
[bsa_pro_ad_space id=1]The commissioner also stated that employers need to understand their legal obligations related to EPF and ESI contributions and provide the necessary infrastructure and systems to comply with the requirements.
“Sensitisation can help them understand the legal provisions, deadlines, and procedures involved, which will reduce the likelihood of non-compliance and potential legal issues,” Patel said.
He also stated that sensitisation on EPF and ESI is critical to ensure that all the stakeholders involved, including employers and employees, have a clear understanding of those social security schemes. He added that by increasing awareness, promoting compliance, and enhancing the well-being of employees, sensitisation programme could contribute to a fair, equitable, and secure working environment.
Resource person Rohit Singh, regional PF commissioner, mentioned that EPF and ESI are social security schemes provided by the government of India to protect the financial interests of employees.
He stated that EPF scheme was established under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and is a mandatory retirement savings scheme applicable to employees in organisations with 20 or more employees. Under the scheme, he stated that both the employer and the employee contribute 12% of the employee's basic salary plus dearness allowance to the EPF account.
He added that EPS provides a pension to members who have completed 10 years of service, while the EDLI offers life insurance coverage to EPF members.
Singh further stated that the ESI is a health insurance scheme introduced under the Employees' State Insurance Act, 1948, which applies to organisations with 10 or more employees in areas specified by the government. He added that both the employer and employee contribute a percentage of the employee's salary towards the ESI.
The regional director of ESIC, NER Guwahati, Robert L Guite, spoke on employee state insurance, while the deputy Labour Commissioner, T Chubayanger, chaired the programme and Labour Commissioner, SL Wati Aier, delivered the welcome address.