Dear Suman ji,
What I understood is, you want to ask whether PF and ESI attract on directors' remuneration? My answer to you is as under:
As regards to PF:
Directors on salary should also be counted for computation of employees for coverage. Deduction towards PF can be made if he is not opted for excluded employee with in the meaning under the Act.
Directors getting remuneration shall be excluded.
Partners shall be excluded.
Self employed (proprietor) if getting salary, is to be counted for computation of employees for coverage. Deduction towards PF can be made if he is not opted for excluded employee with in the meaning under the Act.
As regards to ESI:
In case MD or any director is paid monthly remuneration to carry out extra duties, he is treated as employee. He is counted for the number of persons for coverage. (SC in ESI v Apex Engineering 1997(77)FLR 878 and also Hq letter T-11/13/232/20/75-Ins IV dated 04.03.1998)
Partner is a owner of the business. Partner, if he is paid some remuneration for any special attention for which he devoted, their is no change in his status i.e.ownership and bring him within the definition of employee. (SC in ESI Trichura v Ramanuja Match Industry 1985(i) LLJ 69, 1985(66),FLR 108, AIR 1985 SC 278).
Partner looking after business for remuneration of certain percentage from net profit can not be treated as employee. (Mad HC in ESI v Ananda Silks Paradise 2008(119) 577, 2008 LLR 1243, 2008(4) LLN580, 2008(i) LLJ 275).
Partner of firm not employee (Ker HC in ESI v Arun Granites 2008(i) LLJ 211)
Self employed (proprietor) is excluded and not to be counted for number of person employed. ( ESI Hydrabad v Maharaja Bar & Rest. 56, FJR 279).
I request other members to make their comments.