PF And ESI Clarifications

We are a two year old partnership firm operating a restaurant in Bangalore. We have been deducting ESI from all employees since the start of operations. We understand that the ESI deduction is applicable only if the total employees are more than 10. We have now scaled down our operation to a total staff strength of 6. Do we still need to deduct ESI? Also, what is the process to inform the ESI department about this change?
Similarly, on the PF, we only recently got to know that PF is to be paid only when the employee has a certain salary level. Can you please clarifiy what is the maximum salary under which PF is paid?
Yours truly
Rakesh

Dear Rakesh,
Once you entered in to ESI or PF schemes you will have to be in the scheme till you operate this business , irrespective of no of employees on roll.
Suppose now your present strength is 6 only and I hope the exciting 6 members are already covered and enjoyed the benefits so far, then how can you deny the benefits to them?
Contribute to the present strength and explain your reduction of manpower to the inspector who is visiting your unit.
Regarding PF contribution, the maximum salary (Basic+DA) for contribution is Rs.6500/=
S.Sethupathy,
Erode.

Thanks for your message Sethupathy.
As I understand, it is imperative that we continue on both the schemes now that we have registered for the same.
Regards PF, I still have a query. For those with a Basic +HRA more than 6500, should we calculate the PF only on 6500?
Rakesh

Dear Rakesh,
We need to contribute upto 6500 only.
Employee-780 towards his EPF A/C
Employer -541 towards EPS and 239 towards EPF .
If both willing to contribute more (over 6500), the additional contributions will go to EPF account only.
S.Sethupathy,
Excellent HR Services,
Erode.