Navigating PF and ESI Contributions After Employee Resignation: What Are the Rules?

Dear All,

Clarification Needed on PF and ESI Contributions

1) If an employee resigns in May 2012, do we still need to continue their contributions until the year-end of PF (February) and ESI (September) quarterly, or can we stop payments?

2) Is it true that the ESI department has not taken the ESI annual return documents for 2011-2012, or do we need to submit them online only?

3) In PF esewa, do we need to upload all employee details every month, or is it not necessary to upload?

4) Is it challenging to handle PF and ESI without involving a consultant?

Regards,
Sheela

If the employee resigns in May 2012, then you can't continue his contribution. His PF should be only till May 2012. ESI contribution is till that half year. It's not a quarter.

ESI Returns Filing

ESI returns have to be filed every half year. Now, there is no need to file physically, but you shall file it online.

PF E-Seva Details

In PF E-Seva, you should provide the EPF Number, Name, and contributions of all the employees for every month. Other details like DOB, DOJ, Father's Name, Gender, Relationship should be given only in that particular month of joining. Date of leaving and the reason should be given only when the employee leaves.

It is not so difficult to handle PF & ESI without consulting. Earlier, there were manual returns. Instead of visiting the offices, they used to give it to the consultants. Now, as things are going online, you shall do it online. But make sure you file all the returns on time and with the proper contributions. 

Software Companies and the Shops and Commercial Establishments Act

Software companies come under the Shops and Commercial Establishments Act. Enclosed is the minimum wage information for the same.

Regards,
[Name Removed For Privacy Reasons]

Could someone kindly clarify if we need to update employee details every month in the monthly returns for PF? Also, how can we show the loss of pay (LOP) for half a day? For example, if an employee worked 25.5 days and the remaining 4.5 days are considered as LOP, how should this be indicated?

Regards,
Sheela

Thank you for your prompt response. However, we have only paid him for 25.5 days of salary, not 26 days. How should we reflect this shortfall amount in the PF records?

Regards,
Sheela

I have one doubt regarding arrears. In the PF monthly e-return arrears column, do we need to mention only the PF contribution (12%) amount or the arrears wage (basic + DA)? For example, if Mr. X receives Rs. 5000/- (PF Rs. 600/-) as April wage but after filing the PF return, the management decides to increase his basic to Rs. 6000/- (PF Rs. 720/-), should we put in the May PF monthly e-return arrears column Rs. 120/- (Rs. 720 - Rs. 600) or Rs. 1000/- (Rs. 6000 - Rs. 5000)? Kindly guide me on this.

Regards,
Sheela

Thank you for your guidance. Can anyone provide guidelines for the following query?

Monthly e-Return Columns

In the Monthly e-return, there are three columns: ARR EE Share, ARR ER Share, and ARR PEN SHARE. These columns do not populate automatically. Do we need to enter them manually?

ESI Coverage Doubt

I have one more doubt regarding ESI. Currently, the same employee does not fall under ESI coverage, but we have already made the payment before paying him arrears salary. Should we continue paying until September, or can we stop and inform the department regarding the arrears pay?

Regards,
Sheela