Labour Welfare, Social Security and Administrative Practice
This domain connects welfare and social-security law with office practice. Expect questions on provident fund, ESI, gratuity, maternity benefit, employees’ compensation, Punjab Labour Welfare Fund, welfare amenities, inspections, registers and returns, and the administrative handling of service and disciplinary matters.
Core rules
- EPF: covered establishments generally contribute 12% of employee basic plus DA, with a matching employer share; the statutory wage ceiling is ₹15,000 per month for mandatory coverage.
- ESI: wage ceiling is ₹21,000 per month (₹25,000 for persons with disability); employee contribution is 0.75% and employer contribution 3.25% of wages.
- Gratuity: 15 days’ wages for each completed year of service, based on last drawn basic plus DA, after five years’ continuous service; the statutory ceiling is ₹20 lakh.
- Maternity benefit: 26 weeks for the first two children, with eligibility and notice conditions.
- Administrative practice: maintain service books, inspection notes, registers and returns; follow natural justice in disciplinary proceedings; record reasons for decisions.
Worked example
An employee with 10 years’ service and last drawn monthly wage of ₹26,000 (basic plus DA) is eligible for gratuity. Formula = (15 × last drawn wage × completed years) ÷ 26. Calculation = (15 × 26,000 × 10) ÷ 26 = ₹1,50,000. The “26” represents the average number of working days in a month, not 30.
Traps that cost marks
- Using 30 instead of 26 in the gratuity formula.
- Ignoring the five-year continuous-service condition.
- Mixing EPF and ESI wage ceilings.
- Counting only basic pay where DA must be included.
- Skipping the show-cause or personal-hearing step in disciplinary action.