Partner - Risk Management
Educator, Management Consultant & Trainer
PF is payable unless their STARTING salary with your firm was above Rs. 15,000 (basic and DA only) and they did not have any PF account existing at that time. So you should be paying them PF.
ESIC is payable now for everyone whose salary is less than Rs. 21000. So you will need to pay ESIC also.
You will need to pay it on gross wages, which in your cases is on 15800 per month
4th January 2017 From India, Mumbai
Your employees are getting Basic salary of Rs.7,300/- thus they are eligible for PF Membership as the PF coverage ceiling was enhanced to Rs.15,000 from Rs.6,500 w.e.f. 1st September 2014. Now you are liable to pay both the employee's & employer's contr. to PF from their joining date or 01.09.2014, whichever is earlier (legally).
As regards to coverage of ESIC w.e.f. 1st January, 2017, you can show only Basic salary of Rs.7,300 plus O.A. Rs.600 & discontinue showing HRA. This will save employer's contr. of 4.75% & employee will save 1.75% on his HRA amount. However, as a precautionary measure, you need to issue separate letter to employees informing that they will be provided with free accommodation and House Rent Allowance will be discontinued w.e.f. 1st January, 2017.(Pls ensure that the letter date should be prior to 31st Dec. 2016).
Tnx & Regds,
6th January 2017 From India, Thane