Harsh Kumar Mehta
Consultant In Labour Laws/hr
+1 Other

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Hi Guys,
Sorry if these questions were asked beforehand, but I searched the forums but could not find any similar posts.
My questions are:
1. How many employees must be present in a partnership/private/ownership firm to make it mandatory to deduct and deposit PF & ESI?
2. Does the amount of salary makes any difference to the count of the employees? For example, if someone is getting a salary of 3000, is he not counted in the number of employees? If yes, what is the maximum of amount of salary which is exempted from mandatory deduction of PF & ESI? Or the total number of employees are counted regardless of the salaries?
3. What are contractual employees in sense of PF & ESI? Do the term "contractual" means we are hiring employees from a third party? In such a case, is it mandatory to pay service tax to such a contractual firm?
Thanks for any help coming this way. :)

hi frnd
there is no such minimum numbers said to be employed in the partnership or some other companies, but for any concern to be recogonized there must be 20 employees to apply for esi and pf matters
and as principal employer u have to pay the service charges and service tax as per rules

Hello Yogesh
1. Any organization having more than 10 employees whose salary is below 15000 then its mandatory for the company to get register for ESI act/scheme.
Any organization having minimum 10 Employees then its mandatory for PF Registration.
For PF Registration Employees Basic + DA should be less or equal to 6500. If its above 6500 it depends on Company for PF registration for EE\'s.

For coverage of establishments as specified under ESI Act, 1948 there is requirement of 10 or more persons and not "more than 10 employees" as mentioned by one of members as above.
Similarly,persons getting wages upto and including Rs.15000/- per month are coverable under said Act.

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