Understanding PF and ESI Deductions for Office Support Staff: What's the Percentage?

Hi, I have a query. Apart from qualified employees, will the office boy, security guard, floor cleaner, etc., also have PF and ESI deductions? If yes, what is the percentage of deduction from the basic salary?

Hi,

I think qualified employees should receive benefits from PF or ESI.

Regards,
Dinesh

I believe by qualification, you mean academic or technical qualification. If so, all employees, irrespective of their educational qualifications, are eligible to become members of EPF and ESI. In fact, it is meant for such low-paid employees that these social security measures have been framed. As such, it is mandatory that all employees whose basic salaries are less than Rs 6500 at the time of joining are the ones who are eligible to become members of EPF by statute. Similarly, employees whose salaries exceed Rs 15000 are out of coverage of ESI schemes, which implies that the ESI scheme is meant for low-paid employees only.

Regards,
Madhu.T.K

Yes, I totally agree with Madhu T K. In fact, the main purpose of all labor laws is to provide social security to low-paid and deprived people.

Regards,

All employees, if covered by the eligibility criteria, shall be entitled to benefits under all social welfare legislations such as PF, ESI, Gratuity, etc., irrespective of their qualifications.

ESI contribution is 1.75% from the employee and 4.75% from the employer side. If an employee is earning less than Rs 50 per day, then a total of 6% will be contributed from the employer side, with no deduction from the employee's side.

[QUOTE=Visheshgopal;1134821]ESI contribution is 1.75% from the employee and 4.75% from the employer side. If the employee is earning less than Rs 50/- per day, then a total of 6% will be contributed from the employer side, with no deduction from the employee side.

Dear Shri Gopal, please note that from August 2008, the amount has been increased to Rs. 70 per day. Those who are receiving a daily wage of less than Rs. 70 do not need to pay the employee contribution for ESI. Also, please be informed that the employer contribution is only 4.75%.

Thanks and Regards, Sindhu

Can I put a correction to Visheshgopal? Employees' contribution to ESI is not to be deducted from the wages of employees whose daily average wage is not more than Rs. 70, and not Rs. 50. The employer's share in such cases will remain the same, i.e., 4.75%.

Regards,

Madhu.T.K

Hey guys, per my knowledge, employees who are drawing Rs. 3,500 or more per month are covered under ESI.

Dear Friend,

PF and ESI rates will be the same for qualified or non-qualified persons/employees of the organization. It should be worked out as usual.

Regards

I don't know about the 50 Rs funda - why do we deduct 50 Rs in every state? Is this policy standard everywhere? Can anyone please clarify?

I don't know about the 50 Rs funda - for what we deduct 50 Rs in every state. Is this policy applicable everywhere? Can anyone provide me with an answer?