Payment of PF and ESIC contribution before Workers Salary is correct or not ? - CiteHR

Hello Friends,
Our Company Give us Payment To All Workman After Date 21 To 22 of Every Month, But PF And ESIC Contribution Is Paid Before Date of 15 Of The Month. Is This Iawful Or Not? Is Our Company Making An Mistake In Paying PF And ESIC Before Our Salary

From India, Mumbai
Freelancer In Hr &indirect Taxes For
Srinath Sai Ram
Hr Manager

Dear Mr Rajendra,
You are Complying with Statutory requirement of Remittance of Contributions before the Due date.However, while Filing ECR in EPF Portal you have to mention the date of Disbursal of Salary.By remitting EPF & ESI before due date you are avoiding Imposition of Interest & Penal Damages for Belated Remittance.Instead of Paying Salary belatedly , you may explore the possibility of atleast releasing 50% of Salary on or before 7th of the Month.Once your Financial Position improves, resort to the Practice of Payment of Salary before the due date

From India, New Delhi
Epf and esic is calculated on actual present work days performed by an employee.
Also salary is calculated on actual present work days.
Now if epf or esic is paid earlier to making salary, then it not reconcile with wage sheet and ecr so producef.
For that reason ,epf and esic has given grace days with in which if payment is done ,its legal.
While payment of epf esic if paid earlier is no problem as long as revords of salary and work days etc match properly.
Else it will problem for employer.

From India, Vadodara

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