Understanding PT, PF, and ESI Rules: What Are the Compliance Criteria for Employers?

Hi All,

I am Ekta. I have joined a new startup IT organization based in Gujarat and I need information about PT, PF, and ESI rules for employers. Can anyone help me out with what the criteria and minimum employee strength are as per government rules to fall under these compliances?

Thanks & Regards,

Ekta Maniyar

ESI:

1. Applicable to all factories (including government ones) other than seasonal factories, which means those operating less than 7 months in a year.

2. Employees who are earning up to 15,000 Rupees per month (excluding overtime wages) are eligible to become ESI members.

3. All workers, including temporary workers, are eligible to become members of ESI.

4. If temporary workers are employed through contractors and the contractor fails to pay the ESI, then it is the Principal Employer's duty to pay it and deduct it from the contractor's payment.

PF:

1. Applicable to all establishments engaged in an industry specified in Schedule-01 where 20 or more workmen are employed.

2. PF will be deducted from all members at 12% of the basic wages and dearness allowances, which is limited up to 15,000 Rupees.

3. Employers also pay an equal amount of contribution for respective employees.

4. All workers, including temporary workers employed in the Schedule 1 industries, are eligible to become members of PF & EPS.

I am attaching a PPT for your reference.

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Hi Buddy,

As far as my knowledge goes, PF cannot be withdrawn without an employer's signature.

With Regards,

Mr. Thumbs Up

Hi Praveen,

Thanks a lot, Praveen Kumaran, for the valuable information. I would appreciate it if you could share information related to Professional Tax as well. As my company is new, I am going to handle everything. Our company's strength is 14 executives. Should we pay professional tax? If yes, how should I get my company registered and fill PT?

Thanks & Regards,
Ekta Maniyar

Hi Ekta,

This morning, I came to know about the latest PF notification which states that employer attestation is not required. I am attaching that notification for your reference. Please find it.

With Regards,
Mr. Thumbs Up