PF and ESIC Norms Help

Dear all,

I have few queries regarding Shop and establishmnet act and the PF Act

1)What is the diff between Salary and Stiphen in an Shop and establishment act

2) If I want to recruit a trainee in my company, which is under Shop and establishment act. for a Stiphen of 5000 Rs, how will her salary be bifurcated

3) If trainee letter is given for the Stiphen of 5000 Rs without deducting the PF will it effect the company anyways

The Overall Case.

My company falls under the Shop and establishment act, no one in our organisation wants PF hence we were not deducting the PF from the Salary but the esic was cut for employee earning under 10000. Now we have recruited a Trainee at Rs 5000, after that our Pf and ESIC consultant told us that any employee earning Rs 6500 and below we will have to deduct the PF, we have not given the trainee a trainee letter and she has already joined the org for 2 weeks. My boss has asked me to clear her salary in vouchers and not put her into the payroll of the company. But the trainee wants a letter or else the trainee will quit now what is the solution for this situation Pls help since i dont want to lose the trainee and want to gaurd the company interests as well

__________________
Thanks
Tina Ignatius

Dear aklesh,

What you mean is that the letter should not be on letter head but plain paper mentioning that we have her as trainee and we will be paying her in cash.

Regards,
Tina Ignatius

__________________
Thanks
Tina Ignatius

Hi Tina,

if a trainee is doing a job for academic purpose/ internship and obtains a letter from his college/ university that the the purpose of this project is only to fulfill his/her course and this letter is submitted to the employer , then i think it is not needed to deduct the PF.

Otherwise , for any payment to employee (below Rs.6500/- as basic ) will attract PF.

Regards,
Priya J.
(Please rectify me if i'm wrong and update me with the latest change in labour laws)

Hi Tina,
So far as the provision of Provident Fund & ESIC acts are concern, one day membership is there. It apply to all types of employees where master servant relation come in to force. Only apprantice are excluded fom the day one operation since they are having specific provisions in the concern statute.
In such kind of typical circumstances, 1 must go through the way which is not harmful for either way i mean either on compliance side or in hr side.
To me, you must think of C2C leaving other issues. Ask your boss to go through.
If have found new remedies please inform.
Best Luck,
REgards,

I agree with this.....

Regards,

Shiv

Hi All,

I need your help in calculating my PF contribution. I worked in a Mumbai based company for 2 years and 8 months. In the first year of the employment I contributed Rs.927 per month (12% of the basic), the same was contributed by my company also.
Therefore, the contribution from my side for 1st year was = Rs. 927*12 = Rs. 11,124
Similarly, the contribution from my company's side for 1st year was = Rs. 927*12 = Rs. 11,124
Total contribution = Rs. 11,124 + 11,124 = Rs. 22,248
For rest of the 20 months, my contribution was Rs. 1200 per month(12% of the basic) and the same was from my companies side i.e. Rs. 1200 (12% of the basic).That means,
the contribution from my side for 20 months was = Rs. 1200*20 = Rs. 24,000
and, the contribution from my company's side for 20 months was = Rs. 1200*20 = Rs. 24,000
Now, my question is whether my companywill pay just Rs. 780/-which is the maximum as per the rules. Or that this 780/- goes to pention fund and rest 659/- goes to PF
contribution. How is the whole calculation works and what amount will I get now?
For your reference, I joined this company on 1st Aug'05 and left on 31st
March'08. Please help me in calculating the amount.

Plz reply me on

HI
I AM SUBODH
I WANT TO KNOW THAT THROUGH WHICH ACT WE GIVE 7 CL TO AN EMPOLYEE
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