Confused About PF and ESIC Deductions for Employees Who Work Only One Day? Let's Discuss!

Dear Sir,

I have a confusion regarding the deduction for PF and ESIC amounts. If somebody joins us but only works for one day before not returning to the office, are they still eligible for PF and ESIC contributions? Is this compulsory for deduction, or are there any rules for the calculation of PF and ESIC if the individual works for only one day or not less than seven days?

Regards,
Lavkush Tripathi

As per the law, you have to contribute to ESI and PF if you pay salary for one day's work. In such circumstances, normally, no employee who leaves the company just one day after joining will 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 needs to be made.

Regards,
Madhu.T.K

Mr. T. Madhu,

If we have already applied for ESIc number online on the same day, what should we 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 the roll. Moreover, it should not be taken for granted that the person will not claim one day's salary. The best way to pay him and avoid one day's statutory payment is to pay him through a cash voucher showing the expenses under another head with the approval of the accountant 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 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 receive communication from the ESIC regarding the 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