Hope my question here would be solved.. I'm into a company where there is no process being followed to pay the salary and I want regularize it in proper way.. There are around 80 employees who are unskilled and there job is even very critical. I need to have there insurance, ESI and PF in place..
I wanna know how it can be done.. whatz the process for it.. how should i go.. please help me out.. It would really help me to channelize the process..
Thanks in advance..
Maintain attendence properly in form 22(muster roll).
Have set proper records of every employee.Joining,resigning,OT,
half day etc etc.Bifurcate as per the catogaries.
you can maitain all this even on MS-EXCEL .
Then reg legal part like you can apply to ESI and PF office
in your area and they will guide you to go ahead.
I hope this will help you
Hope i can get answer for this..
Thanks in Advance,
As per statute both PF and ESI are applicable to your organisation. You have to apply to the local PF authority and ESI office for separate code numbers for PF and ESI. You may visit the respective websites of EPF and ESI where you can view the application forms and can take print out for applying code numbers. For PF both employee and employer will contribute @ 12% on basic and DA. For ESI employer will contribute @4.75% and employee will contribute @1.75% of PF salary. For employees earning a wage @ Rs 50/- pe day employr will pay the full contribution i,e 6.5%. Books are also available both for PF and ESI.
If you are based at Kolkata u can contact me ( 9903862144 )as I am a consultant on the subject under discussion.
DA is not Dail y Allowance. it means Dearness Allowance. U cant pay basic 5000 & DA 6000. generally DA will be quite lesser than Basic. If total salary is 11000 then you can fix the both Basic & DA to 6500, HRA and other allowances to 5500. You can even increase Basic & DA to 7000 and reduce other allowance.
PF will be calculated 12% only on Basic + DA and not on the Gross & The same contribution from the employer too. Here you can limit the max of PF for 6500 if basic & DA exceeds 6500.
ESI will be calculated on Gross it is 1.75% of Employee contribution and 4.75% of Employer contribution total is 6.5%.
If the gross salary exceeds 10000 then those employees will not be eligible for ESI.
For further details u can contact me on 9343753361
Please tell me u r from which city & the location
Please do not confuse the rules of PF and ESI
As per PF act the PF to be deducted only on Basic and up to a ceiling of Rs.6500.00 of basic pay, Dearness allowance, HRA, and Conveyance Allowance on which PF is not to be deducted . Please refer the Wage definition of EPF Act. EPF : Employee share is 12% and Employer share is total 13.46% which is inclusive of EPF Employer share Plus 1% of administrative charges, 0.5% of Linked insurance and 0.01 % of other heads.
Here Basic wage is that which is fixed by the state governments by way of gazette Notifications as per Minimum wages Act and as well the dearness allowance fixed for every 6 months once and release by way of gazette notifications for awareness of the industry and traders, you can get a copy of the same from your near by or regional commissioner of labour office.
As per ESI the ceiling is Rs.10000.00 which consists of (Basic and Dearness Allowance )and the HRA and Conveyance or Travelling allowance are exempted from deduction of ESI please refer the case laws Given under ESI Acts. for ESI employee share is 1.75% and employer share is 4.75% on above wages. The wage is well defined in the ESI Act please purchase a bare act of ESI for your immediate reference.
In regard to insurance part, ESI will look after all fatal accidents and death cases of the employees and more over if you are more care full to wards your employees go for group insurance scheme which will take care of all the medical and hospital expenses of the injured at work.
Process for applying:-
ESI- You have to address your application to The Officer, Employees’ State Insurance
Corporation, of your city with the following documents requesting for your establishment to be covered under ESI Act
1. From – 01
2. Trade License
3. Certificate of Incorporation
4. Pan Card
5. Owners Residential Address Proof
6. Rent Receipt
7. Bank Statement
8. Attendance Register
9. Salary Register
10. Memorandum & Articles of Association
For, PF you have to write to The Regional Provident Fund Commissioner
Regional Provident Fund of your city with the following documents:
1. Form for allotment of Business Number
2. Document to obtain code number
3. Extension of PF coverage voluntarily
4. Consent signature of staff
5. All relevant supporting
a) Copy of trade license
b) Company PAN
c) Central Sales Tax Registration
d) Certificate of Incorporation
e) Form 3
6. Audited Balance Sheets
7. Profession Tax Certificate
8. Income Tax Pan Card
Insurance- you need to talk to Agents of LIC/State Bank of India/ICICI pru and take quotations.
This process should get you started. Incase they want any further supportings the concerned officers would let you know.
All the best,
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