Running a Small Security Company: Are PF and ESI Deductions Mandatory for 14 Employees?

ravi.varma
I am running a security company with a total of 14 employees. Below are my queries:

1) Is it mandatory to deduct PF?

2) Is it mandatory to deduct ESI contributions?

3) Please provide me with the SALARY SLIP FORMAT if such deductions are not mandatory.
korgaonkar k a
I presume you are operating from Delhi. We are a security agency, and you have a total of 14 SG & staff.

PF Applicability

To your company, the PF Act is not applicable since you have fewer than 20 employees. However, your SGs who are deployed in PF-covered establishments should be covered under PF. Basically, it is the duty and responsibility of the PE to cover them under his code. However, the PE generally does not take such responsibility and insists that contractors comply with PF and other social security schemes themselves. He expects that if you need business from him, you should have your own social security code numbers and ensure necessary compliance under those numbers.

ESI Applicability

ESI is applicable to your company since in Delhi, the threshold limit is 10 and not 20.

Apart from PF & ESI, you should hold a PASARA license.

Regards
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