Inclusion under PF & ESI coverage - basic pay.. CiteHR
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sapidg Started The Discussion:

Respected All,

In my current Organisation some of the employees are not being covered by PF and ESI benefits though there basic is below 6500/- and gross is 10000/-. In the first place i am making a proposal to the management for extending the benefits to the eligible personnel. if i get a positive nod then can i cover those personnel under the benefit with immediate effect. Need Guidance.

Rgds..
DG

kiran_alittleray -  Member Since: Nov 2009
In Order to get covered under ESI & PF. you should be specific about the no. of employees working in the company and also the nature of companing and whether power has been installed or not, that to for what HP.

vkokamthankar -  Member Since: May 2008
Your query clearly states that PF and ESI Act is applicable to your organization and some of the eligible employees are covered under the schemes and some of the employees who are also eligible for the coverage are not covered due to reasons best known to you.
• How you managed to keep some eligible employees out of coverage of PF and ESI would be an interesting read. Moreover how did you manage the non coverage from the probing eyes of PF and ESI Inspectors will be even more interesting to know.
• Anyhow you are taking big risk by not complying with legislations. It is better to have 100% compliance and cover all those employees under PF and ESI, who are purposely left out.
• May be you will have to tell your management the possible cost of non compliance (Prosecution, Labor Unrest, Public Humiliation, Loss of Reputation, Penalties, fines, damages, interest, litigation etc.) in case you are caught.
• You can start compliance now. Rather sooner the better.
• However you may still have to think of possible hardships and penalties for past non compliance.

Thanks & Regards

chitra.sharma30 -  Member Since: Sep 2010
hi,I m chitra .we have started production in march2010. now we want to cover over Pf & Esi registration.what is the criteria regarding number of employees in the company for coverage of
pf &Esi & what is the limit regarding salary for coverage under pf. Because I hurt that workers whoose basic salary is up to Rs 6500 are elegible for coverage under Epf. But the employees whoose basic salary is more than Rs 6500 this is not mendatory to cover him under Epf act.Please clearify.

anandtrivedi -  Member Since: Sep 2010
hi, i am anand, i am working in telecommunication industries, my basic pay 10100 ( more than 6500) after conformation , after two - three months salary slip , i found that my employer doesn't deduct pf/epf from my salary, my employer is mid - ltd company and employee are around 700-800.

my question is that if employer doesn't deduct than what is alternative for PF deduction for employee like us ( More than Basic > 6500), there is not any govt. rules for Pf Deduction from employer?

Pls guide me in this matter.

abbasiti -  Member Since: May 2010
Dear DG & Anand,

First I shall respond to DG. If you get positive nod from your employer, there is no difficulty to bring those having salary in excess of Rs. 6500 to under PF coverage. But if they crossed Rs. 10,000, they will be out of coverage of ESI.

Regarding Anand : At the time of your joining, If your salary is more than Rs. 6500 and the employer is not ready to deduct PF there is no rule to compel your employer.

Abbas.P.S

essykkr -  Member Since: Dec 2008
Dear Abbas please update your knowledge now the coverage limit of ESI has been enhanced form 10000/- to 15000/- since May 2010.

essykkr -  Member Since: Dec 2008
Quote:
Originally Posted by anandtrivedi View Post
hi, i am anand, i am working in telecommunication industries, my basic pay 10100 ( more than 6500) after conformation , after two - three months salary slip , i found that my employer doesn't deduct pf/epf from my salary, my employer is mid - ltd company and employee are around 700-800.

my question is that if employer doesn't deduct than what is alternative for PF deduction for employee like us ( More than Basic > 6500), there is not any govt. rules for Pf Deduction from employer?

Pls guide me in this matter.
If your company has taken PF code and comply with the provisions of PF Act. then you may be covered under PF even if your are getting more then 6500/- by your own choice there no bar to that. Ask your managment for this that you want to be member of PF fund voluntarly, they can do so.

abbasiti -  Member Since: May 2010
Dear essykkr,

Thank you for your intervention & subsequent correction.

Even though I have updated my knowledge that ceiling for ESI coverage is Rs. 15,000, for a moment I was in my early memories.

Thank you once again

Abbas.P.S

rajmore22 -  Member Since: Sep 2007
Hi all

ours is service industries and we have aroudn 10 to 15 employees having a salary of Rs. 15000/- not single employee is having less than this, till now we have not applied for PF coverage ? please suggest do we have to go for PF even though our employees are getting more than 6500/-

Raj




 
 
 
 





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