Employees' Provident Fund - The Code on Social Security, 2020, is a comprehensive legislation aimed at

providing social security to all workers and employees in India. It amalgamates various existing laws related to
social security and aims to simplify and streamline the process. Under this code, several social security schemes
and funds have been established for the welfare of employees. Let's delve into some of these schemes and funds:

1. (EPF):
o EPF is one of the most significant social security schemes under the Code on Social Security, 2020.
It is aimed at providing financial security to employees after retirement.
o Both the employer and the employee contribute a certain percentage of the employee's salary to
the EPF account. As of now, the contribution rates are usually 12% of the employee's basic salary
plus dearness allowance from both the employer and the employee.
2. Employees' State Insurance (ESI):
o ESI is a self-financing social security and health insurance scheme for workers in India. It provides
medical and cash benefits to employees and their families.
o Under this scheme, both the employer and the employee contribute a certain percentage of the
employee's wages towards the ESI fund. The current contribution rates are usually 4% of the
employee's wages, with the employer contributing 3.25% and the employee contributing 0.75%.
3. Gratuity:
o Gratuity is a benefit provided to employees as a gesture of gratitude for their long-term service to
the organization. It is payable when an employee completes five or more years of continuous
service.
o The gratuity amount is calculated based on the employee's last drawn salary and the number of
years of service. The employer is responsible for funding the gratuity amount.
4. National Pension Scheme (NPS):
o NPS is a voluntary, defined contribution retirement savings scheme aimed at providing retirement
income to employees.
o Under NPS, both the employer and the employee contribute a certain percentage of the employee's
salary towards the pension fund. The contribution rates may vary depending on the terms agreed
upon.
5. Maternity Benefit:
o The Code on Social Security, 2020, mandates provisions for maternity benefits to female
employees. It includes paid maternity leave, medical benefits, and other related allowances.
o The employer is responsible for providing these benefits to eligible female employees.
6. Social Security Funds:
o Apart from the specific schemes mentioned above, the Code on Social Security, 2020, also provides
for the establishment of various social security funds to support employees in times of need, such
as for disability, unemployment, and old age.

The contribution for Provident Fund by both the employer and the employee is crucial in ensuring financial
security for the employees post-retirement. As mentioned earlier, the usual contribution rates are 12% of the
employee's basic salary plus dearness allowance. Out of this, the employer contributes a certain percentage, and
the employee contributes the remaining percentage.

In conclusion, the Code on Social Security, 2020, aims to provide comprehensive social security coverage to all
workers and employees in India. Through various schemes and funds like EPF, ESI, Gratuity, NPS, and maternity
benefits, it ensures financial stability and welfare for employees during their working years and after retirement.
The contribution for Provident Fund, shared by both the employer and the employee, forms a vital part of this
social security framework, fostering a sense of financial security and stability for the workforce.

The contribution for Provident Fund (PF) by both the employer and the employee is regulated by the government and is typically
a percentage of the employee's salary. As per the current norms, the contribution rates for PF are usually fixed at 12% of the
employee's basic salary plus dearness allowance. Out of this 12%, a specific percentage is contributed by the employer, and the
remaining percentage is contributed by the employee.

Here's how the contribution is usually split between the employer and the employee:

1. Employer's Contribution: The employer contributes a certain percentage of the employee's salary towards the Provident
Fund. As mandated by law, this contribution is usually 10% of the employee's wages. It's important to note that the
employer's contribution is separate from the employee's salary and is an additional expense borne by the employer.
 2. Employee's Contribution: The employee also contributes a certain percentage of their salary towards the Provident Fund.
As per the current norms, this contribution is usually 12% of the employee's basic salary plus dearness allowance. The
employee's contribution is deducted from their salary before the payment is made to them.

Under Chapter VI of the Code on Social Security, 2020, provisions relating to maternity benefits are outlined. These
provisions aim to support women employees during pregnancy and childbirth, ensuring their well-being and facilitating
their return to work post-childbirth. Let's discuss the maternity benefits available under the Code on Social Security,
2020, in light of the statement regarding the maintenance of a crèche facility:

1. Maternity Leave:
o The Code on Social Security, 2020, mandates that every woman employee is entitled to a period of
maternity leave. The duration of maternity leave is prescribed as per the rules and regulations specified
by the government, which may include provisions for paid leave.
o Maternity leave provides women with the necessary time off from work to attend to their prenatal and
postnatal care, ensuring a healthy pregnancy and childbirth experience.
2. Maternity Benefit:
o During the period of maternity leave, women employees are entitled to receive maternity benefits, which
typically include payment of wages or salary for the duration of the leave. The amount of maternity
benefit may be provided by the employer or through social security schemes like the Employees' State
Insurance (ESI) scheme.
o Maternity benefit ensures that women employees do not suffer financial hardship due to taking time off
from work for childbirth and recovery.
o Maternity Benefit: Maternity benefit refers to the compensation provided to women employees during
their maternity leave period. It aims to mitigate the financial strain associated with taking time off from
work for childbirth and recovery. The Code on Social Security, 2020, ensures that women employees are
entitled to receive maternity benefits, which may include payment of wages or salary for the duration of
their maternity leave. These benefits are crucial for maintaining financial stability and ensuring that
women can focus on their health and the care of their newborns without worrying about loss of income.
3. Medical Benefits:
o Women employees are entitled to medical benefits related to maternity care, including expenses for
prenatal care, childbirth, and postnatal care. These medical benefits may cover consultation fees,
hospitalization charges, medication costs, and other related expenses.
o These medical benefits ensure that women receive adequate healthcare support during pregnancy and
childbirth, promoting maternal and child health.
4. Crèche Facility:
o As per the Code on Social Security, 2020, employers are required to maintain a crèche facility for the use
of children under the age of six years. The crèche facility must have adequate accommodation with
proper lighting and ventilation.
o The availability of a crèche facility at the workplace enables women employees to effectively balance
their work responsibilities with childcare duties, facilitating their return to work post-childbirth.

Overall, the provisions related to maternity benefits under the Code on Social Security, 2020, aim to safeguard the
health, well-being, and employment rights of women employees during pregnancy and childbirth. By providing
maternity leave, maternity benefits, medical benefits, and access to crèche facilities, the code seeks to create a
supportive and conducive work environment for women, promoting gender equality and work-life balance.

Maternity Benefit. - Case Law: In the case of Indian Railway Catering and Tourism Corporation Ltd. v. Sudha
Singhal, the Delhi High Court held that maternity benefits are payable to women employees regardless of their
employment status, whether permanent, temporary, or contractual. The court emphasized that maternity benefits are a
statutory entitlement and must be provided accordingly.

Crèche Facilities:
Case Law: In the case of Chacha Nehru Bal Chikitsalaya v. Manju Sharma, the Delhi High Court emphasized the
importance of providing crèche facilities at workplaces to support women employees in balancing their work and
childcare responsibilities. The court held that crèche facilities are essential for promoting gender equality in the
workforce and facilitating women's participation in employment.