Understanding PF and ESIC Rules for Small Consultancy Firms: What Should You Know?

I would appreciate it if you could let me know the following:

1. Rules relating to compulsory PF and ESIC registration for a Pvt. Ltd. doing professional consultancy - which has less than 20 staff.

2. If ESIC is applicable - is the consolidated salary constitute the limit of Rs. 15,000/-? Or is there any breakup for it?

Looking forward to receive your valuable advice.

Regards and best wishes,
Kuriakose

Dear,

For PF and ESIC, the employee strength should be 20. If the employee count is less than that, as per the Act, you cannot deduct the PF and ESIC. However, once the employee strength surpasses 20, then you can begin deductions. After that, the employee count is not considered if the number of employees in your organization falls below 20; you must deduct PF and ESIC even if there is only one employee.

There is no exemption for ESIC contributions. The gross salary is considered, and if it is 15000/- or above, then it is mandatory not to deduct ESIC.

Hope this information helps you.