PF & ESI Eligibility FOR ORGANISATION - basic salary.. CiteHR
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PF & ESI Eligibility FOR ORGANISATION

sheetal_libran Started The Discussion:

hiye,

Please let me know when do an organisation has to register under PF and ESI.

OPTIONS FOR PF entitlement of organisation

OPTION 1. WHEN ITS TOTAL EMPLOYEES WORKING = 20 OR
OPTION 2. WHEN ELIGIBLE EMPLOYEE i.e. employees who are drawing salary upto 6500 (basic) are 20 ( For eg. total employees working in org. are 50 nos. but staff having BASIC salary LESS than or equal to 6500 is 10 employees only.)


Which option goes with PF act and where it is mentioned.

OPTIONS FOR ESI entitlement of organisation

OPTION A. WHEN ITS TOTAL EMPLOYEES WORKING = 20 OR
OPTION B. WHEN ELIGIBLE EMPLOYEE i.e. employees who are drawing NET salary upto 10000 are 20 ( For eg. total employees working in org. are 50 nos. but staff having net salary LESS than or equal to 10000 is 10 employees only.)




I NEED this clarification at the earliest possible.

company has to register for PF & ESIC when company strength is more than 19 cumpulsorily and also mind you that if any of the group companies are already registered then also irrespective of the strength you will have to register...there are many instances where companies had to register though there is no strict guideline on it.

ESIC is cut when the gross is below 10,000 accept travelling allowance. PF if the basic is 6500.

Hope its sufficient.
Dr.Shivkumar

Amith R Murthy - Contributing Member
Dear Sheetal,

For more on this you can visit the below mentioned websites,

1) www.esic.nic.in for information on ESI

2) www.epfindia.com for information on PF

Hope this will be useful for you.

Regards,
Amith R.

Amith R Murthy - Contributing Member
Dear Sheetal,

For more on this you can visit the below mentioned websites,

1) www.esic.nic.in for information on ESI

2) www.epfindia.com for information on PF

Hope this will be useful for you.

Regards,
Amith R.

Amith R Murthy - Contributing Member
Hi Sheetal, Visit below mentioned websites for more details, www.esic.nic.in and www.epfindia.com Regards, Amith R.

Madhu.T.K - Senior Member
An organisation employing (in fact employed on any day during the last 12 weeks) 20 or more employees shall be covered under the EPF Act. For coverage the salary given to employees is not a matter. If all the employees at the time of coverage are drawing more than 6500, then all are exempted employees, but still the organisation will be covered. Moreover, an establishment once covered will continue to be covered irrespective of the fall in the number of employees to less than 20. Similarly, an employee once covered will continue to be covered irrespective of any increase in salary above 6500.

Under ESI also establishment is covered if the number of employees exceeds the limit as 10 or 20 as the case may be. Under ESI, if the salary of a covered employee becomes more than 10000, he will be out of the scheme but will continue to contribute till the contribution period is over. After that no contribution is to be made.

Regards,

Madhu.T.K

yogitta - Contributing Member
Dear Madhu,

Kindly clear one of my doubt on PF, i heard that for Registration of PF an organisation has to be atleast 3yrs old existence from the date of registration.now as per new law even if the employee strength is 10-15 then also a firm can enroll for PF, but suppose if the firm registration date is oct 06 and in april 2009 its employee strength goes upto 30-40,in that case whether the org is eligible to enroll for PF or not???????? kindly reply.you can also mail me on

Thanks

alexkj05 - 
We are a (p) ltd software firm. Four directors are there. I need some clarifications regarging PF

  1. I understand the company has to enroll for PF if the strength is more than 20. Does this 20 include the directors too?
  2. I have a strength of 24 and 10 of them take less than 6500. Do I need to enroll for PF?
  3. My firm was a partnership firm. It is converted to a PVT LTD and operations are starting from April 2009. Any points I have to keep in mind?

malikjs - Senior Member
dear
it is immaterail ,how many employee are eligible to be covered.if yyou will refer the applicablity clause of ESI&PF act no where it is menmtioned 20 eligible employee
or 10 eligible employee.so when your strenth is 20 and u are covred under shop and establisment act ,both act will apply to you.in above said case if directors are employee and getting salary as per muster roll than they have to be inclded.
if they are not on muster roll and getting director renumeration ,than they will not be counted in strength.
tks
js malik

alexkj05 - 
Thank you Malik. I read that only staff taking less than 10K is eligible for ESI. What if I am taking any other corporate group insurance? WIll that be fine?



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