Rules of PF/ESIC - employers contribution.. CiteHR

jainanuragk Started The Discussion:


mithila_bhatia -  Member Since: Jul 2011
Hi all,

PF is deducted from employees salary every month @ 12 % of basic salary, if his basic salry is upto Rs.6500. Employer needs to pay his share of 12% separately every month though challan.

ESI deducted @1.75% og gross monthly salary of employee. Its limit is Rs 15000. Employer needs to pay his share of 4.75 % separately every month though challan.

boss2966 -  Member Since: Jan 2009
Dear Anurag

Please check EPFO site for EPF Procedures (even you can download the Act and Rules from this site) and ESIC Home Page link for ESI Procedures (here also you can download the ESI Act).

suresh6699 -  Member Since: Nov 2008
once we paid the PF amount more than the ceiling amount (Rs.6,500/-) then its possible to reduce to the ceiling of 6500/-

say an example the wages is 12000/-, hence the pf amount would be 1440/- (@12% on the wages (12000) and the same alos been deducted from employees and the equal contribution also been paid from company on their contribution.

but considering the employees' benefit, planned to reduce to the maximum ceiling of Rs.6,500/- (PF of 780 each from both side), obvisioly company PF contribution amount will come down and the difference can also be considered to the employees' take home.

Is there any statutory compliance will get effected on this change??? can we change the max. ceiling amount as 6500/- henceforth????

Please specify the formalities if any....... or share your views on this!!!!!

rkasba -  Member Since: Nov 2011
PF Contribution by employee is 12% of Basic Salary and employer also contributes on the same rate of interest if salary exceeds 6500 than its employees choice he can contribute unto 20% but employers contribution remains same12%.
After making Salary and PF sheet for month PF cHallan is made and deposited in PF Office and than form 12A, form5 and form 10 is deposited in EPF Department

Any more Clarifications Needed, Feel Free to Ask


suresh6699 -  Member Since: Nov 2008
Thanks for your suggestion....

please clarify me if the company is changing the salary structure (basic Wages) for any relavent reason, at that time where they can change/reduce the max. ceiling limit of 6,500/- (for both the employee & Employer), even they are been paid more than 6,500/- basic wages.

This is only for PF calculation & making the payment as per the max. ceiling, for the people who are all above the ceiling amount.

There any question or consequence will raise from PF office???? what is the normal law says?????

It would be helpful us , if any one clarify me .....

Thanks in advance!!!!

2210192 -  Member Since: Sep 2010
Dear All,

Please tell me if i am Labour contractor and got ESIC Code from Haryana(Gurgaon) and my contract is running in Rajsthan(Bhiwadi), than where the contribution should be deposit. Please suggest me urgent.

Sanjay Kumar

sudhir s thakur -  Member Since: Feb 2015
Sir my total salary is 16000 per per month still my detection is going on.may I know the why so?.I want to know the all terms and conditions for esic.

boss2966 -  Member Since: Jan 2009
Dear Sudhir

Once you have been a member in the PF, then even after you cross the maximum ceiling, your PF Contribution will continue.

In case of ESI only, whenever the ceiling crosses, you need not to pay the ESI Contribution.

sathya_india -  Member Since: Mar 2015
Dear Sir/Madam
We are pleased to offer you an end to end HR Compliance and Payroll processing .We use an automated system for processing and the following are the features:
a. Leave Management
b. Loan Management
c. Reimbursement Management
d. Income Tax Management
e. Monthly Reports
a. Payslip to all employees
b. Attendance report / Leave Summary
c. Monthwise comparison report
f. Statutory Reports
a. ESIC Challan
b. ESIC Form 6/7/5/5A
c. PF Challan – online filing
d. PF Ledger / Register
e. Profession Tax Challan
f. LWF Form
g. Income Tax Projection
h. TDS Report
i. Income Tax Form 16/16AA/12BA
j. Income Tax Form 24/24Q (e-filing)
k. Other Labour Law compliance related to Factories Act.
g. Various other MIS Reports

In case of any assistance required for compliance, feel free to call us.
HR compliance Executive, NI Consulting Services (P) Ltd.,
81, Peters Road | Royapettah| Chennai - 600014
O: +917200031432
M: +919884691063


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