Priya.1994
Payroll Executive
Vikramtrivedi007
Pf & Esic Consultant
Ch.Sai Kiran
Ca.final
+2 Others

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Dear All,
I have few doubts regarding applicability of Esi and PF.
I have more than 20 employees in our office.A few of them are drawing less than 6500 per month and a few are drawing up to 30,000 per month.
My doubt is whether PF and ESI applicable to all the employees?
Is there any wage limit for applicability of ESI and PF.
I heard that wage limit is 6500 pf
15,000 esi are the wage limits.
Are these correct?
Plz clarify...................

Hi,
Yeah there is limit for PF & ESIC PF limit is 6500 & ESIC limit is 15000 if any employees has his basic salary more then 6500 then he is not applicable for PF but he want to deduct his PF Amount so u can deduct 6500 or full amount or else if he dont want to deduct PF amount so he can fill form 11. & for ESIC there is limit for 15000 if any employee has more then 15000 gross salary so that employee is not applicable for ESIC below 15000 all are compulsory applicable for ESIC. from April 2013 the limit will increase to 25000/-.

An employee who has joined newly in a firm has his starting salary of 30,000.Is he covered under PF and ESI act.
What is the concept of Exempted employee?
Are the employees drawing more than 6500 pm completely excluded from the applicability of the act?
Plz clarify.............

IF the Employee has his Basic salary is more then 6500 so its depend upon your company they can deduct fixed amount 6500 or they can deduct on full basic salary 12% and in ESIC he is not applicable so you can only deduct PF & PT from his salary.
Sai kiran
Both ESI and EPF are applicable to you
1.All employees with salary up.to Rs 6500/-are to be covered under EPF .
2.New employees with salary above need not be covered under PF if they were not PF member earlier.They shall be covered if they were member in PF earlier.Obtain Form 11 from them.
3.In all above cases employers liability is limited to 12% of Rs 6500/-
4.If you are willing you can contribute for employees with salary above 6500/-
Varghese Mathew
09961266966

Dear Sir,
Firstly thank u very much for your reply..........
You said employees drawing up to 6500 are covered under the act.I agree for that.
But what is the case with the employees who are drawing more than 6500 pm.I have more in my company who are drawing more than 25,000 pm.What is to be done in their case?
Plz reply.................
Awaiting your reply...........

Employees with salary above Rs6500/-pm are to be covered in EPF if they were earlier members in EPF .If not they need not be covered in EPF statutorily. Varghese Mathew
For upto 6500/- cover under PF and ESI for 6500/-.
For more than 6500/- even if 6600 - do not cover PF (if not requested employee or you decided to not to deduct so) but deduct ESI.
For more than 15000/- need not deduct PF or ESI ((if not requested employee or you decided to not to deduct so)
If try getting exempt from deducting PF for more than 6500/- then maintain FORM 11.

Hello,
As per your query
Provident Fund
First of All as you said your establishment having more than 20 employees so EPF Act 1952 applicable to your establishment.
Employees having basic salary less than 6500/- : compulsory to deduct PF
Employees having Basic salary more than 6500: - Not compulsory to deduct/ may deduct on 6500/-i.e 780 per month or may deduct on 12 percent of basic salary
ESIC act is applicable if you employed 20 or more employees having salary less than 15000/-
Regards
Vikram Trivedi
PF ESIC CONSULTANT
Cell No.: 8898841995

Dear friend
In case of esi if employee gross wages less then 15,000 then you can deduct his esi otherwise you can not deduct his esi. It is mandatory but in case of pf some industries deducts pf amount if employee pf wages more than 6500.
Sompal

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