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Dear Kumarswamy,
Pertaining to your question on ESI,PF and Insurance. I fill you need not think of Insurance because when you have ESI you really dont need Insurance. You are also mentioning all are Unskilled in such a case i hope all will be cover under ESI i.e less than Rs 10,000 Gross.

For ESI and PF calculation i would suggest you to send sample of some 10 workers as to what all you are paying and how much you are paying based on that you will get the reply on how on the same along with calculations, which would make you to get better idea.
Hope my reply is of some use for you.
Thanks & Regards
Amith R.

From India, Bangalore
Hi Mr.Kumaraswamy,
Well I can understand its difficult for any new person who is not aware of Rules and methods of esic and pf procedures. If you really require a consultant with a good negotiable package you can call us. With more than 20 years of experience in this field and a advisor who worked in Esic department for 34 years.We are the leading service providers in this field.

Prakash Mahadik-9223202860
Lets have a meeting at my office or I can come to your place.
Your confusions will be solved.
Thank You

From India, Pune
Dear All,

To many opinions mixture of right and wrong seems to be creating confusions

PF salary means all emoluments earned by an employee excluding HRA OT bonus commissions and similar allowences. Even leave encashment attracts PF deduction. PF is deducted on regular salary which is also called PF salary . Where basic salary is low supposing 200 and DA is 1000 the PF salary is 1200 and employee's & employer's contribution to PF @ 12% is 144 each. Out of the employer's contri bution 8.33% of salary goes to pension fund and rest to PF. For ESI same rule is followed only the contribuition rates are different and employees getting PF salary over 10000 are not covered by ESI.

There is no such rule that basic salary always will be higher than DA. There are many MNC and other commercial houses whose employees are getting DA as fixed by various Chambers of Commerce which are 500% or more higher than basic. This means if an employee's basic is 100 he he gets 500 as DA and PF is deducted of 600. This is agreed upon by both the management and trade unions and local labor commissioners.

Kalyan Mitra

From India, Calcutta
Dear All,
This has been explained very well. Please visit the labour department in your city and collect the minimum wages pertaining to your industry and sphere of work. You need to maintain a number of registers/ formats. Excel sheets have already been suggested and can be implemented. Initially it would be trial and error but do not give up.
ESI is compulsary but workmens compensation helps. Please have accident policy and workmens compensation in place. Both are not very expensive provided your management agrees to it.
All the best.

From India, Calcutta

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