I am the Proprietor of a security agency. We provide guards to govt entities. An independent dept of the GOI decided on the salary structure of the guards.
Recently, the indep dept published the structure where EPF and ESIC for employees beyond gross salary of 15000/- and 21000/- respectively was indicated as 'Not Applicable'. In the earlier structure it was indicated as 'As Applicable' and hence we were drawing the same from the Principal Employer and depositing it.
Hence the query is that, can we stop the EPF and ESIC abruptly based on the laid down salary structure and if so what and what actions are to be taken based on the fact that they have exceeded the exemption limits. Or is it that once an employee gets the benefit of EPF and ESIC he continues to get it even if his gross crosses the exemption limits of 15000 and 21000 respectively.
The second query is on the EPF limit. Is EPF not applicable to those drawing salary beyond the limit of 15000; or is it that irrespective of the salary, EPF contribution is restricted to 15000/- Which of the two statements is correct.
From India, Pune
Recently, the indep dept published the structure where EPF and ESIC for employees beyond gross salary of 15000/- and 21000/- respectively was indicated as 'Not Applicable'. In the earlier structure it was indicated as 'As Applicable' and hence we were drawing the same from the Principal Employer and depositing it.
Hence the query is that, can we stop the EPF and ESIC abruptly based on the laid down salary structure and if so what and what actions are to be taken based on the fact that they have exceeded the exemption limits. Or is it that once an employee gets the benefit of EPF and ESIC he continues to get it even if his gross crosses the exemption limits of 15000 and 21000 respectively.
The second query is on the EPF limit. Is EPF not applicable to those drawing salary beyond the limit of 15000; or is it that irrespective of the salary, EPF contribution is restricted to 15000/- Which of the two statements is correct.
From India, Pune
Dear Abhishek,
Employees whose Gross Salary is above Rs21,000/- do not come under the Purview of ESI Act.However, during Contribution Period i.e
April to Sep/Oct to Mar, Employees Salary crosses coverage Limit i.e Rs21,000/-PM, Contributions to be remitted till completion of relevant Contribution Period.There after, such Employees go out of the purview of ESI Act
With regard to EPF Present coverage limit is Rs15,000/- Employees who are becoming EPF Mmebers for the First time can be excluded from coverage, if their entry level EPF Wages is above Rs15,000/-PM
Howver, an Employee who was earlier EPF MEMBER, Has not withdrawn his PF Amount, Joins your establishment, you have to cover him under EPF & REMIT Contributions till coverage Limit i.e Rs15,000/-PM
You have to obtain EPF Declaration Form # 11 from all Employees & initiate action for Coverage/Exclusion based on the information provided in Form # 11
From India, New Delhi
609Employees whose Gross Salary is above Rs21,000/- do not come under the Purview of ESI Act.However, during Contribution Period i.e
April to Sep/Oct to Mar, Employees Salary crosses coverage Limit i.e Rs21,000/-PM, Contributions to be remitted till completion of relevant Contribution Period.There after, such Employees go out of the purview of ESI Act
With regard to EPF Present coverage limit is Rs15,000/- Employees who are becoming EPF Mmebers for the First time can be excluded from coverage, if their entry level EPF Wages is above Rs15,000/-PM
Howver, an Employee who was earlier EPF MEMBER, Has not withdrawn his PF Amount, Joins your establishment, you have to cover him under EPF & REMIT Contributions till coverage Limit i.e Rs15,000/-PM
You have to obtain EPF Declaration Form # 11 from all Employees & initiate action for Coverage/Exclusion based on the information provided in Form # 11
From India, New Delhi
EPF and ESIC slab has been increased to 21,000; whose salary is less than the slab are mandatory to contribute their PF and ESI; it is a statuary rule passed by individual and central govt.
hope this answer would help u
From India, Hyderabad
hope this answer would help u
From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Challans for EPF ESIC.zip
ESIC and EPF forms.XLS
EPF - Pension contribution is zero WHY.jpg