PF ESIC Calculation

Dear Sir,

I have a confusion for the deduction for pf & esic amount, if somebody joined us, but he worked only one day after that he was not coming in the office, the he is eligible for pf & esic contribution?
This is compulsary for deduction, or any rules for the calculation of pf & esic, if he is working 1 day or not less than 7 days?.


Regards,
Lavkush Tripathi

As per law you have to contribute ESI and PF if you pay salary for the one day work. In such circumstances, normally, no employee who leaves the company just one day after joining will not come and ask for that day's salary and the employer, in turn, will not process his salary. In such cases, since no payment has been made, no contribution need to be made.
Regards,
Madhu.T.K

Hi,
Its absolutely correct. And the real thing is no need to pay for one day.
regards,
Sudha.T

Mr.T.Madhu,
If we have already applied ESIc no.on line on the same day then what to do.......
shish uniyal
09811681660

Dear All,
Statutorily the employer is bound to deduct and pay PF & ESI contributions even if somebody has worked for one day and if he was on roll. Moreover it should not be taken as granted the person will not claim one day's salary. The best way to pay him as well as avoid one day's statutory payment is pay him thro cash voucher showing the expenses in someother head with the approval of the accountant as and when he claims the money.

Dear Shish,
ESI nomination (declaration by the employee) is normally filed in hard form and I do not think that ESIC has developed such a software wherein the employer should upload the details of each new joinee on the day of joining itself. Now, if the declaration has been furnished, you will get communication from the ESIC regarding allotment of Id Number to the employee. You can even include the name in your register (ESI form 6) and put "zero" against wages and contributions. That's all.
Regards,
Madhu.T.K