Epf Coverage - CiteHR
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Jitendersyadav
Hr Manager
RizwanSothe
Labour Law Consultant
+2 Others

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If a firm has twenty five employees. All employee has Basic Salary is Rs.16000. Is the firm covered under EPF & ESI ACT
If a firm is covered under ESI act and firm has 22 employees from which 14 employee are consultant and not on roll
and also deduct TDS. is this firm is liable to covered under EPF act
kindly help me

Dear Gurdial Singh, If no body comes within the ceiling limit, there is no question of statutory obligation to pay to PF, provided non of the above registered with EPFO. Abbas.P.S
I would like to raise a question here : -
How it could be that a firm is covered under ESIC but not under PF.
Aplicability of both these act are same. The date when ESIC become applicable to that perticular orgaisation, PF also would be applicable.
I just want to understand the scnerio.
Rgds/Jitender

Dear Gurdial,

If the co. Is having 20 or more employees, it is automatically covered under EPF Act. If the Bas+DA is more 15000, then it not mandatory to cover the employees. But if the employee is already a member through his previous employment then Co. will have to extend the membership to him. Other employees can be exempted. Co. will have to take the no. but no compulsion for contribution.

ESI- is applicable when there are 20 no. of employees whose gross salary is 15000 or less. If this condition is not fulfilled Co. is not eligible for coverage. Eg. Call centres are having 100 of employees but due to higher salary (more than 15000) it is not covered under ESI Act.

Employee- if an appointed person is working fully and solely for a company, he is not a consultant but an employee. Just by designation and deduction of TDS he'll not be considered as a Consultant. Consultant has his own office and having multiple clients. He raises his professional charges bill. Due to this misconception many Co.s have suffered.

Yes I also agree with Gurindr.The both acts apply on the above case.
Dear Rizwansothe, For ESI applicability the coverage limit is 10 employees. Kindly revert back if iam wrong. Regards, M. Dinesh kumar.
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