Senior Executive HR

I am working in Small company and I am working on payroll ,Since we have 30 member as if now and we are planning to increase employee Strength we are having recruitments,We are having 30 employee as if now is it mandatory to have PF and ESI deduction in a Pay Slip .and please suggest me if there are any deduction excluding HRA &Medical Allowance,Special Allowance,Dearness Allowance

From India, Chennai
Manager Accounts
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Senior Executive HR
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ESI is applicable on 10 members & EPF is applicable on 20 members , so you need to show both deduction on pay slip
From India, Dharamsala

Dear Syed,
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.

From India, New Delhi

You need to show ESI & PF on payslip. All components that are part of salary are to be considered for ESI.
From India, Bangalore

Hi Syed,
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>
Email :

From India, Delhi

Dear Syed,
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.

From India

One of the allowance, you should provide to your employees, Conveyance Allowance. To some extent this amount is allowed to be non-taxable, if any of the employees fall in the taxable bracket.
From India, Mumbai

Dear Abhay,
I think there is a difference between Conveyance and Allowance.
Not not in touch with any Salary Slip where, Conveyance is mentioned as an Allowance.
If, there is any provision please forward me.

From India

Ofcourse Conveyance can be one of the allowance in Salary Slip, and can be made non-taxable, to certain amount, if employee gives declaration as per IT rules. There is a specific provision in IT, related to this. HRA is also made non-taxable if employee provides declaration and proof that he is residing in rented house. These are some of the titles, which are usually given in Salary bifurcation, so that one can get tax benefits legally. I am not knowledgeable in Taxation, but any of the member who is well aware of tax rules, is requested to comment.
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 :

From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

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