Is It Necessary to Provide PF and ESI to Employees During Their Probation Period?

Dear friends,

Is it necessary to give PF and ESI to probationary period employees? Actually, in my organization, the probation period for all employees is 6 months. Once their probation service is completed, we will transfer them to permanent employment based on their performance.

Please let me know, can we book their salaries in accounts for probationary employees?

VENKAT SANAM

Employee Entitlements: PF and ESI

It is immaterial whether the status of the employee is probationary or under a fixed-term contract; they are entitled to PF and ESI from day one of joining the company. Their salary should be booked in accounts.

Regards,
Madhu.T.K

New joiner's salary should be booked in accounts from the date of joining of any new employee.

Regards,
Shilpasri

Hi,

I would like to inform you that from the first day of joining, every employee is eligible for PF and ESI benefits. As per the PF & ESI Act, there is no obstruction for any employee to avail the facilities of PF & ESI, whether the employee is on a probationary period or not.

The essence of PF & ESI is that anyone who works for the organization will be eligible for the benefits. Therefore, the facilities of PF & ESI will be provided to probationary period employees as well.

Thanks & Regards,

Sunil Sharma
Email: ssmbahr@gmail.com

Dear Venkat,

It is mandatory that employees of all categories are to be covered by ESI and PF, depending upon the strength of manpower in your establishment, i.e., if 20 or more. They should be covered from the very first day of their employment, and they do not need any merits like whether they are confirmed/permanent or not.

However, there is a ceiling for ESI - i.e., up to a maximum of Rs. 15,000/- gross salary at 1.75% Eee and 4.75% Eer. In the case of PF, the mandatory deduction will be up to a ceiling of Rs. 6,500/- per month (Basic + DA) at 12% for both the employee and employer.

Regards,
Kosal Raj.

Hi,

Many times, it is observed that employees under the probation period are not given benefits like PF, ESIC, leaves, etc. The salary is also prepared separately and not booked in accounts. This practice should be avoided and audited as every employee in the organization, irrespective of the employment status, is eligible to enjoy statutory benefits.

Regards, Manasi Shah Consultant

Are employees eligible for ESI and EPF under 11 months of contractual work?

In many countries, including India, employees are entitled to benefits such as Employee State Insurance (ESI) and Employees' Provident Fund (EPF) based on their period of employment and the terms of their contract. However, eligibility criteria for these benefits may vary depending on the specific regulations governing ESI and EPF.

For example, in India, employees are typically eligible for ESI and EPF benefits if they have worked continuously for a minimum period, which is usually 6 months. However, certain categories of employees, such as contractual workers, may have different eligibility criteria based on the nature of their employment and the terms of their contract.

It's important for employers and employees to be aware of the specific rules and regulations related to ESI and EPF eligibility to ensure compliance and to understand the benefits available to them based on their employment status.

If you have specific questions about ESI and EPF eligibility for contractual workers or need further clarification on this matter, it's advisable to consult with a legal or HR professional who is well-versed in labor laws and regulations in your jurisdiction.

Certainly, yes, because they are employees even though they are engaged for a fixed period, say, 11 months. An employee employed even for a day should be covered if his notional wages do not exceed Rs. 21,000 per month in the case of ESI and Rs. 15,000 in the case of PF. Notional wage means the amount of wages that he would get had he been employed for a month.

Madhu.T.K