Partner - Risk Management
Freelancer In Hr &indirect Taxes For
[email protected]
Hr , Ir , Complainces
Hr Executive & Head Of Operations In
[email protected]
Ea To Director
+3 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear All,
We have started an Organization as a Pvt Ltd company, whereas 35 employees have been working for the past 2 months. Is there any mandatory to deduct PF & ESI in their Salary ?
Please suggest your valuable feedback !

From India, Hyderabad
Yes, it is mandatory to take code of PF & ESI (Registration).
If employee has below than rs. 15000/- (Basic + DA) salary per month PF need to be deduct.
If employee has below than rs. 15000/- (Gross) salary per month ESI need to be deduct.

From United Arab Emirates, Dubai
Yes , it is indeed mandatory to take PF code & ESI Registration for your employees. Get the needful done thru a professional man , it will not cost you the sky and your employees will appreciate your move.
From India, Bangalore
Dear Mr. Sourav,
And one more question. If we get register with PF & ESI, can we able to pay the last 2 month PF & ESI deductions ?
If so, how can we deduct from employees for 2 months dedcuctions ? they will be suffer a lot !

From India, Hyderabad
PF and esic is mandatory statutory compliance that needs to be fulfilled.As said,your must register your company with PF and ESIC Authorities.and pay the contributions as per the scheduled time lines.
For PF Refer - EPFO site, For esic - its esic site on line to know more

From India, Vadodara
Dear Javedjaffer,
1. Any Organization having minimum of 20 employees on payroll is to be registered under EPFO Scheme. As you have mentioned there are 35 employees, it is mandatory to enroll your Organization under EPFO Scheme.
2. Any Organization having employees whose Salary ( Basic + DA ) is less than 15000 / pm , has to be covered under ESI ACT.
If you are seeking any professional help to get the registrations, you can drop me an email on .... I can help you with one of the Professional Corporation who provides such services

From India, Hyderabad
As your have 35 employees then go for deductiing PF /ESIC to avoid further legal problems Narendra
From India, Mumbai
You are required to pay PF and ESIC from the day you have had 20 or more employees.
Since the process of getting PF code and ESIC code were long and complex located they have a procedure to,pay backdated amounts after you get a number. Now the process is very simple so you will get your codes within a week, so you need to pay the amounts with interest.
You are allowed to deduct the arrears from employees.
However, since it will cause hardship for them, I suggest you deduct it in instalments - say across 4 months.

From India, Mumbai
Is it right if a 50 years old company, having more than 150 employees altogether, giving PF and ESI facility to some of the employees who are old and having salary more than 25,000/- pm basics now even more than 30,000/- pm @ 12.5% of basics and nothing is being given to the employees who have basics just 15050/-
in this case many employees are getting PF employer share up Rs.4000/- pm and many are getting nothing even they are now more than 2-3 years old emplyees.
Is it legal or right or as per employer's wish.

From India, Noida
First, I think you should have put this as a separate post instead of putting this here.
Secondly, you need to read the PF act and scheme.
Exemption from PF is as per eligibility at time of joining the company. Once PF is given, it continues irrespective of how high the salary goes. So,older employees who had salary of less than ₹6500 at joining will continue to get PF while new ones with salary of above ₹15000 will not get.

From India, Mumbai

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™