Navigating ESI and PF Deductions for Hospital Staff Across Multiple Districts: What Are the Best Practices?

Dear members, I am working in a hospital with 10 employees in Hyderabad (head office), but we have branches in 8 other districts in Andhra Pradesh with a minimum of 5-10 employees in each branch.

1. Can we deduct ESI and PF for all these employees?
2. If we don't have an ESI dispensary in the districts, what should we do if we are deducting ESI from the salary?

Please help me with this.

With thanks and regards

Please find the answers below:

1. Can we deduct ESI & PF from all these employees?
→ Yes, any organization with a total of 20 employees must register for PF.

2. If we don't have an ESI dispensary in the district, what should we do if we are deducting ESI from salary?
→ Please check with the local ESI office; sometimes, they have tie-ups with private hospitals. Otherwise, you can provide benefits as per Workmen Compensation.

Thank you for the information. I still have a doubt as only 10 employees are working in the Hyderabad branch, while 8 people are working in branch offices in other districts of Andhra Pradesh. We are running separate payroll in the branches. Should we add the total number of employees (Head office + Branches) or should we manage PF & ESI facilities separately for each?

You can add all the employees together since all the branches have the same employer, or you can use the sub code for other branches. If you are using the sub code for other branches, you can deduct ESI and PF separately. However, if you are deducting the same from the Main Code (head office), then there is no need for the sub code.