Comprehensive Guide to PF/ESI Deduction Process and Employer Obligations

I am working in a company as an HR Executive. We have PF/ESI consultants who are working with us on a contract basis. Please let me know the steps involved in deducting PF/ESI.

Thank you.

Hi,

PF is deducted at 12% of the basic salary from both the employee and the employer. Out of this 12% of the employer's contribution, 8.33% goes to the pension fund, whereas the remaining 3.67% is deposited into the PF fund only. Additionally, the employer is required to pay some administrative charges as well.

Regards,
Amit Seth.

Thank you, Amit, for explaining PF in a very simple manner. It is good and easy to understand for new HR professionals.

Regards,
Mustafa

You have to deposit PF Challan on or before the 15th of every month and ESIC challan on or before the 21st of every month.

Pallavi :)

Hello,

This is to inform you that the PF office submission copy has to be kept with you, and there is a three-month time frame for it. Even if you are on a contract basis, you are eligible.

Thank you for further queries at [Login to view]. We welcome advice and suggestions.

Hi,

If there is no pension plan in the company, then what will be the procedure for the deductions of PF/ESI?

Regards,
Deepika

Hello,

The first thing to consider is that when there is no pension plan, one can opt for alternative procedures to be adopted in that situation. The individual has to decide which option is better suited to their needs and circumstances. For example, they can directly apply to the PF office or form a trust for depositing in the company itself. There are many ways to handle this, and the choice depends on your circumstances.

For contact, please email [heddurshettarkpl@gmail.com](mailto:heddurshettarkpl@gmail.com). We welcome any suggestions and advice.

Dear All,

For more information on PF and ESI, you can visit the websites www.epfindia.com for PF and www.esic.ac.in for ESI. I hope it will be useful for all of you.

Regards,
Amith R.

I am new in HR as I am from sales, and I am not aware of how to work out the salary if the person was on leave. If somebody could help me with the salary structure and components to be included in the salary.

Regards,
Sandipa