Discussion on Statutory Compliance Issues
Hello Friends, I hope all are doing well! I want to discuss statutory compliance in my company. Information about the company is described below.
• We are a manufacturer of cables, which come under the engineering group in Uttarakhand.
• Our minimum wage is 6581.
• The total number of employees on the company payroll is 120.
Current Issues Faced
1. We have EPF registration, but only 20 members out of 120 are covered. For those not covered, we have found our own solution. In the salary sheet, we show a basic salary of 6600, which is above the PF ceiling, and fill up Form 11.
2. We have ESIC registration, and all employees earning below 15k are covered, while others are covered under our group insurance policy.
The situation has changed now because the EPF ceiling is now 15000, so we cannot continue this practice. When I discussed this matter with the company owner, he informed me that all shares (12% + 13.61%) will be deducted from employees. By implementing this, the net payable amount will be significantly reduced, and employees are not in agreement with this approach.
As an HR professional, what should be done to overcome this problem?
From India, Delhi
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3Hello Friends, I hope all are doing well! I want to discuss statutory compliance in my company. Information about the company is described below.
• We are a manufacturer of cables, which come under the engineering group in Uttarakhand.
• Our minimum wage is 6581.
• The total number of employees on the company payroll is 120.
Current Issues Faced
1. We have EPF registration, but only 20 members out of 120 are covered. For those not covered, we have found our own solution. In the salary sheet, we show a basic salary of 6600, which is above the PF ceiling, and fill up Form 11.
2. We have ESIC registration, and all employees earning below 15k are covered, while others are covered under our group insurance policy.
The situation has changed now because the EPF ceiling is now 15000, so we cannot continue this practice. When I discussed this matter with the company owner, he informed me that all shares (12% + 13.61%) will be deducted from employees. By implementing this, the net payable amount will be significantly reduced, and employees are not in agreement with this approach.
As an HR professional, what should be done to overcome this problem?
From India, Delhi
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No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls