Commissioner of Labour and Employment, Sushil Kumar Patel said that Employees Provident Fund (EPF) was one of the largest security schemes in the country, but most of the people in Nagaland were unaware of the EPF and Employees State Insurance (ESI).
He said this while speaking at the sensitisation programme on EPF and ESI held at the Conference Hall of Labour Commissioner’s Office, Kohima on July 7.
Therefore, he said sensitisation on EPF and ESI was needed to ensure that both employers and employees were made aware of their rights, obligations, and benefits under these social security schemes.
The commissioner also said that the employers should be sensitised to understand their legal obligations related to EPF and ESI contributions and provide the necessary infrastructure and systems to comply with the requirements.
He also said that sensitization on EPF and ESI was critical to ensure that all stakeholders involved, including employers and employees, have a clear understanding of these social security schemes.
He said by increasing awareness, promoting compliance, and enhancing the well-being of employees, sensitization programs can contribute to a fair, equitable, and secure working environment.
Resource person Rohit Singh, Regional PF Commissioner, Nagaland said that EPF and ESI were social security schemes provided by the government of India to protect the financial interests of employees.
He said EPF was established under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, and was mandatory retirement savings scheme applicable to employees in organizations with 20 or more employees.
Both the employer and the employee contribute 12% of the employee’s basic salary plus dearness allowance to the EPF account.
It may be noted that EPF also provides other benefits, such as a pension scheme called the Employees’ Pension Scheme (EPS) and a life insurance scheme named the Employees’ Deposit Linked Insurance Scheme (EDLI).
The EPS provides a pension to members who have completed 10 years of service, while the EDLI offers l ife insurance coverage to EPF members.
Singh further said that the ESI was a health insurance scheme introduced under the Employees’ State Insurance Act, 1948 which applies to organizations with 10 or more employees in areas specified by the government.
Both the employer and employee contribute a percentage of the employee’s salary towards the ESI. Singh further mentioned that the ESI provides medical benefits, including outpatient and inpatient treatments, maternity benefits, disability benefits, and dependents’ benefits to insured employees and their family members.
Singh stressed that the main objective of both EPF and ESI was to provide social security and financial assistance to employees during retirement, unemployment, sickness, disability, and other contingencies.
Regional Director, ESIC, NER Guwahati, Robert L. Guite spoke on ESI in the second session. Deputy Labour Commissioner, T. Chubayanger chaired the program and Labour Commissioner, S. L. Wati Aier delivered the welcome note.