ESI and PF are called social security acts. You've to compulsorily go for it. Please visit the EPFO website, it may throw you light for all your queries.
However with regards to ESI if an employee salary is less than or equal to 15,000 then it is mandatory. So please check your payroll. If the total number of employees in an organization under the ESI margin crosses 10 then it is mandate to get registered. If not please take a code with ESI and make nil returns until you meet the fixed line.
The above said is not applicable with PF. It is do with the No. of employees only.
Vivek is correct.
PF and ESIC is mandatory for a company employing 20 and 10 employees respectively.
However there are ways to minimize the PF and ESIC liabilities as per the Acts.
Also ESIC limit will be increased from 15000/- to 25000/-. The decision in this regard has already been taken. Only the notification is awaited.
If you require any assistance on PF and ESIC, you can contact us.
Telefax: +91 11 6515 4969, (M): +91 9810 393 450,
URL: <link no longer exists - removed>
Yes Yes PF and ESI coming under Social Security Act and these are mandatory for all Organisations, where 10 for ESI and 20 for PF employees are working. And it should be mentioned in Salary Slip.
The most Important head of Salary is the Basic Salary i.e. (Actual Basic + VDA) and with Basic salary you can add any kind of Allowance according to your Management views to make it Gross.
Also, After Basic, DA, HRA, salary titles can be anything, like Education Allowance, Medical Allowance, Travel Allowance, Fuel Allowance, Newspapere allowance, etc.
There are many discussions on this site itself. One of such talk, I have come across is :