Require To Deduct ESI & PF - CiteHR
Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Ganeshchavan8055
Hr Executive
MOHANKUMAR A
Hr Executive
SOUBHIK KUMAR GHOSH
Hr - Incharge
Hrcom@nics.in
Senior Hr Advisor
+1 Other

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Hi Seniors,
I have small Doubt we are starting new food factory more over 23 employess are working, among 23 employees 15 employee gets more than 15000 salary, in this situation we could Compulsarly contribute Esi and pf pls advise, we have decided to deduct ESI only is this correct or not pls advise.
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Sir, you are required to obain Code Number under ESI Act, 1948 and also registration under EPF & MPs Act, 1952.
Dear Mohan Kumar
Yes you have to get registered under Employees' State Insurance Act, 1948 and Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act") .
You have 23 employees . Those who are getting more than Rs. 15000 as Gross salary per month , they should be covered under any other compensation policy (The Workmen's Compensation Act 1923 now changed as Employee Compensation Act 2010 & The Fatal Accident's Act, 1855 ) apart from ESIC . Please take signature of your employees on From -2 and Form-11 under EPF Act.
1. You need registration under PF
2. For all employees with basic + da less than ₹15000 (not gross salary), you need to deduct and pay to the PF department along with your contribution. There is no option of not paying.
3. For all employees who had basic + da over ₹15000 on the day the coverage became due, or on the date of joining, whichever earlier, you can exclude them if they fill form 11
4. You need registration under ESIC
5. You have to cover all employees under ESIC whose Gross Salary is not more than ₹15000
6. For other employees, take workman compensation cover as explained by mr. Ghosh
You have to take registration code for both ESIC and PF because total strenth is 23. It doesn’t matter how much is getting Basic + DA more then 15000 or less then 15000
Both PF and ESI are compulsory in your case. Any delay in paying PF or avoiding would invite penalty also and your company would be forced to pay PF to people who leave your company also.
Can any one tell me . if an employee is suffering accident outside the company premises can . he is liable for he ESIC compensation ?
Sir, please indicate full facts regarding accident. Where and at what time the said accident occurred ? Whether the employee at the time of accident was doing something in the course or out of employment ? Whether the said employee was going to attend his duties or returning home after performing his duties ? Whether he was travelling in the transport provided by the employer ? Whether any police report was recorded, if so what are findings of the police department ?If all these facts are indicated, I think, it will be easy/convenient for the seniors or experts to form any logical opinion on the issue as raised by you.
has we want calculate the epf alone and not to the esi amount and those who are getting more than 15000 will not be consider in the esi and our company is situated at chennai
Kind Regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
Tel: +91 44 4261 1486 | Mob: +91 98418 74747
Chennai | Bangalore | Hubli | Hyderabad | Kuala Lumpur
New No.81, Old No.61 Peters Road, Royapettah, Chennai - 600 014. INDIA
Please don't print this e-mail unless you really need to.
as already our comment has sent to you and same the esi should be calculated within 15000/- and not more than 15001/-and in epf there should be minimum 15000/- and maximum should be other than that etc.,
Kind regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
Tel: +91 44 4261 1486 | Mob: +91 98418 74747
Chennai | Bangalore | Hubli | Hyderabad | Kuala Lumpur
New No.81, Old No.61 Peters Road, Royapettah, Chennai - 600 014. INDIA
Please don't print this e-mail unless you really need to.
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