Hr Opration
Shiva Prasad
Human Resources And Ir
Asst Manager Hr
Payroll And Labour Law Consultancy
Head - Hr
+1 Other

Dear Seniors,
Let me introduce myself as Deepthi Shetty.I am working as HR Executive in a growing IT Service providing company.
I am handling majorly recruitment,payroll,leave management.I am the only HR in the Organization handling only 28 employees.
I wanted to know whether it is mandatory to pay ESIC to employees below salary of 15000 p.m??
We have 8 Employees below salary of 15000 p.m & 4 office boys on Wages basis.
Is PF and ESIC Mandatory after we cross a head count of 20 employees??
Can you explain me how ESIC works??
I mean I have heard limit of ESIC is 15000 p.m..what does this mean? Is it employees below 15000 will not pay 1.75% but employer has to pay 4.75% and above 15000 both have to contribute??

And do we have to pay it monthly?? how is the procedure...?
Sorry for bothering you but I was in need of guidance from Seniors.
Thanks & Regards,

Deepthi Shetty.

From India, Mumbai
Dear Deepthi,
Before deducting ESI amount you should know what is ESI Scheme all about and whether it is applicable to your organization.
Please read the attachment which gives you the all the aspects of ESIS.
Richard Rebello

From India, Mumbai

Attached Files
File Type: pdf ESIC.pdf (250.9 KB, 449 views)

Dear Deepthi,
PF and ESIC is applicable to your company as the employee strength exceeds 20.
PF would be 12% - deducted on Basic + DA
ESIC would be deducted on Gross Salary upto 15000/-
Above 15000 gross salary, ESIC is exempted.
ESIC would be deducted on all the employees drawing less or upto 15000/- irrespective of the employment status as daily wages or monthly salaried.
ESIC contribution from employee salary is 1.75% and Employer contribution is 4.75% calculated on Gross Salary.
Hence the total contribution of emp and emplr is 6.5%
Both PF and ESIC needs to be paid monthly. Pls surf the site where the necessary information is given.
Hope this resolves your query. You can mail me at manasidotcdotshahatgmaildotcom for any further clarification.

From India, Thana

Please verify is it your area is covered under ESIC if yes ESIC is applicable (20 or more employees in the organisation)

in your case you have 28 employees 8 Employees below 15000/- of gross salary and you are required to deduct under ESIC rule.

Once ESIC is applicable even less than 20 employees any day. ESI will continue to applicable.

15000/- and more 1.75% from Employees and 4.75% ( total 6.50%) ( Excluding Washing Allowance )

Contribution Period Benefit period

April-Sept Oct - March

Oct - March April-Sept

Payment of Contribution: Before 21st of every Month


-Minimum wages (Basic+DA) INR 6500/=p.m.

-Number of Employees Minimum 20

-Employee Contribution 12% on Basic

-Employer Contribution 12% on Basic

Payment to PF Ogranisation

A/c No 1: 3.67% of Employers Contributuin(12%)+ 12% of Employees Contribution

A/c No 2 : 1.10% Admin Chg on Net Basic

A/c No 10: 8.33% Employers

A//C No 21: 0.05% ( On total Salary-Basic +DA) EDLIS

A/c NO 22: 0.01% ( On total salary-Basic + DA)

The Above Payment should be paid before 15th of month and Challans, Form 5,10 12A 2 before 25th of Every month

Annual returns before 31st of April along with Form 3A and 6A

From India, Bangalore
One of my colleague was working for a well know service industry in GM position. As he left the organisation and joined their competitor the company is not signing neither his PF Withdrawal Form nor PF Transfer Form. He has left the organisation in the year 2008 and so far he iis unable to close his earlier account. Seek Seniors advice in the matter. Is there any way to complain PF Commissioner or so? Pl help.
With Regards,
Shaila Rao

From India, Mumbai
Dear Shaila,
He can settle the dispute through Local EPF office or
It is the duty of the employer under the Act & Scheme to help Employees' Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receipt [para72(5)] forms & hand over it to the member when he leaves the service. When a member finds difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office

Manager of a bank.
By any gazetted officer.
Member of the Central Board of Trustees./ committee/ Regional Committee (Employees'
Provident Fund Organization).
Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.
Hope you get the answer of your query. If u still face any problem fell free to ask
Ratikanta Rath

From India, Durgapur
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™