How Can We Support Low-Salary Employees Struggling with ESI and PF Deductions?

Seeking Advice on ESI and PF Deductions for Low-Salary Employees

I'm working in a limited company with around 35 employees. Is there any way to assist employees who are working on very low salaries, such as peons and cleaners? If the company deducts ESI and PF, they will receive very little in hand. Is there any way to help them? Also, I want to know if opting out of ESI and PF agents is a good option or not?

Please reply.

Regards,
Lakshika

Statutory Requirements for PF and ESI

PF and ESI are statutory requirements. They should be covered irrespective of the salary or wage range.

As it is mandatory, you can't deny it. All you can do is bifurcate the salary into Basic and other allowances to reduce the contribution part and boost the take-home salary. But mind it, you can't have your cake and eat it too. The lesser the contributions, the lesser the benefits.

Do you know there are thousands of widow pensioners whose spouses contributed for just one month? Thus, there are more benefits from a social security angle. It is your duty to convince your fellow employees.

Regards,
S. Sethupathy, Excellent HR Services.