Pbskumar2006
Sr.manager-hr
Rajat Joshi
Hr Consulting ,trainer -creative Thinking
Soms23
Hr Manager
Shan1_16
Asst. Manager - Hr
Samir
Hr Executive

Hi All,
Its Samir again, Now I am facing different problem actually I have doubt,
And I need your help to solve,
1. In order to get expemtion from PF & ESIC ,
do we have to put basic &DA above 7500.
OR
the whole monthly salary ie with allowances should be more than 7500.
2. and can any body suggest good allowances which we can give in which (ours is a BPO)
a. It does not invite fringe benefit tax to the company &
b. And tax saver for employee's too.
few of it I have kept like ( HRA, Medical, Conv..) .
thanks.
11th May 2006 From India, Surat
Hi Samir,
Hi All,
Its Samir again, Now I am facing different problem actually I have doubt,
And I need your help to solve,
1. In order to get expemtion from PF & ESIC ,
do we have to put basic &DA above 7500.
OR
the whole monthly salary ie with allowances should be more than 7500.

If your monthly payroll exceeds Rs 7500/- ESIC wouldn’t be applicable.
You cannot get an exemption on PF which is a statutory requirement.
2. and can any body suggest good allowances which we can give in which (ours is a BPO)
a. It does not invite fringe benefit tax to the company &
b. And tax saver for employee's too.
few of it I have kept like ( HRA, Medical, Conv..) .

Suggest – please read the topic FBT implications on salary components under Compensation & Benefits..
Have a great day..
Cheers,
Rajat
12th May 2006 From India, Pune
i heard that PF is not obligatory for employees having salary more than Rs. 6500/- let me know the actaul thing on this.
26th May 2006 From India, Mumbai
Hi samir, Up to Rs.7500 (Gross salary ) ESI should be paid. In case of PF 6500 is the limit i.e as per the act employer can limit his contribution at 6500 (Basic+DA). Shanmugam
27th May 2006 From India, Bangalore
Hi, A company is not liable to register with the PF if it has less than 20 employees withdrawing above Rs. 6500/- Regards, Soumya Shankar
29th May 2006 From India, Bangalore
29TH MAY, 2006
Dear Friend,
Regarding the Provident Fund :> The employment strength 20 or more less than that management descreation to cover it or not. But most of the big industries / establishments may approch voluntarly to the P.F authorities and cover their organisation. This will be attratcts the I.T saving also. The sealing limit of P.F is Rs. 6500/- . on Basic + D.A.
Regarding the Employees State Insurance : > The coverage will be depending upon the location of ESI dispesery and local office.
The sealing limit of ESI is Rs. 7500/- on total gross salary.
Regards,
PBS KUMAR
29th May 2006 From India, Kakinada
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