Can I Create a Salary Slip Without PF or ESI Deductions for My Employees?

Dear All, Kindly help me out; I need to create the salary slip for my organization. There are 30 employees working in my organization. There is no PF or ESI deduction. Can the salary slip be created without PF or ESI?

Salary Slip Breakdown

The breakup of the salary slip is as follows if the gross salary is Rs 12,000:

- Name of Employee: Mr. Kamleshwar Prasad
- ID No: 01
- Grade: 01
- Position/Designation: Senior Executive
- Department/Division: IT
- Date of Joining: 01.04.2014
- Salary for the month of Rs 12,000 2014 (year)
- Gross: Rs 12,000
- Basic: Rs 4,800
- HRA: Rs 2,400
- Conveyance: Rs 800
- Medical: Rs 1,250
- Special Allowance: Rs 2,750
- Total: Rs 12,000
- No. of days present: 31
- No. of days absent: 0
- Leave: 0
- Deduction: Nil
- Advance: Nil
- Loans: Nil
- Net Salary: Rs 12,000

Kindly suggest/advise?

Regards, Amit

Dear Amit, It's a brief narration about your request:

Legal Implications of Creating Payslips

You cannot create any payslip legally since it falls under both the acts, such as ESI and PF. Your basic salary is 4,800, so you have to pay PF to employees. Since his gross salary is 12k, he should be covered under ESI.

Compliance with Labour Act

Your wage pattern does not suit the Labour Act. Please refer to the Minimum Wage Act for guidance. Based on my observation, your wage structure does not comply with the act. Perhaps, do not issue any payslip. If it is submitted to labor officials, you may face penalties.

Thank you.