Navigating Monthly PF & ESI Tasks: Can You Share Your Step-by-Step Process?

Dear Friends,

If anybody is handling PF & ESI processes of the organization, kindly tell me what activities are being handled in an entire month and how to proceed with them. Day by day, form by form (challan), etc. Also, what needs to be done half-yearly and annually.

Thank you.

Dear Colleague Penwey,

I am providing you with some details:

1. ESIC challans
2. P.F. Challans
3. Nomination and Declaration (Form 2)
4. P.F. (Form 5, 10 & 12A)
5. PF annual returns (Form 6A and 3A)
6. Payment of Wages Act (Form IV)
7. Maternity Benefit Act (Form K, L, M, & N)
8. Half-yearly returns of ESIC (Form 6)
9. ESIC forms for newly joining employees covered under ESIC (Form 3)
10. PF (Form 13 for transfer of PF account)

For any clarification, please send me a message.

Regards,
Y. Venumadhava Reddy

Mr. Reddy,

Thank you for your valuable information. Just a little bit more information on all these activities. What we do monthly, half-yearly, annually, and is there any other activity related to it that concerned authorities can ask for.

Regards,
Colig

Hi,

Monthly Date and Month Act Name of statutory Return Before 21st ESIC ESIC Challan Before 15th P.F. P.F. Challan Before 25th P.F. Form 5, 10, & 12A Before 15th Factory Act 1948 Form 21 (Annual Return) Before 21st Maternity Benefit Act Form K, L, M, and N Before 15th Payment of Wages Act Form IV

Monthly statutory Register should be maintained. ESIC Half-yearly returns in the month of May Annual Returns P.F. Annual Returns Form 6A and 3A

Regards, Y. Venumadhava Reddy

Dear colleagues,

Here are some details about PF. For any further clarification, please ask. I will be able to open the mail only on weekends, so kindly cooperate.

With regards,
Josephane Ann Jude

Dear Josephine,

Thank you for the attachment on PF and ESI processes. I would be grateful if you could please include processes related to other statutory returns concerning the Factories Act, Payment of Wages Act, Payment of Bonus Act, Maternity Benefit Act, and other relevant statutes.

Thank you.

Dear Mr. Reddy,

It would be of great help for me if you could describe the following briefly as I am quite new to this process:

ESIC Challan
P.F. Challan
P.F. Form 5, 10, & 12A
Factory Act 1948 Form 21 (Annual Return)
Maternity Benefit Act Form K, L, M, and N
Payment of Wages Act Form IV

Thanks and Regards,
Piyush

Hi,

I need information regarding PF and ESI processes. As I am new to this process, I would like to know the entire process. Please help.

Dear All,

I am attaching a file containing the details of all monthly, quarterly, half-yearly, and yearly returns under the various acts. You can choose which is applicable to your industry and act accordingly. This file has been sourced from this site only.

Additionally, I am attaching one more file providing details about the checklist under the various labor acts.

Enjoy............

Hi,

What will be the treatment in ESI when an employee's salary keeps on varying from 10k (more or less)?

Thank you.

Puja, can you please explain the reason for the variation? Why does it vary from 10 K (less or excess)? If it is due to overtime, then he/she will remain covered under the ESI Act.

Hello Rajeev,

Thank you very much. If the variances are due to incentive payments, bonuses, etc., what will be the treatment? Also, what should be done when ESI is deducted when it should not be?

Still, the employee will remain covered under the ESI Act. I am just attaching a file having the details which are to be covered under the Act for the purpose of the eligibility under the Act. For example, Overtime is not included in the monthly salary for the coverage under the ESI Act, but ESI is deducted on OT. It doesn't make any difference that after including the OT amount the wages cross 10K.

Hello Rajeev,

Through your message, I understood very little about ESI and PF. Could you please explain in an easy way so that I can understand? It's tough for me to grasp this concept at this stage as I am a beginner.

Please also explain the calculation of SALARY.

Hi Shivani,

Just go through this link, you might find the useful information from it, but you have to concentrate, then only you will be able to understand it.

Complete Details on Payroll, Salary & Compensation

Can anyone please tell me what will be the treatment when ESI is deducted when it should not be done.

Hello Rajeev,

I recently encountered a question during an interview where the interviewer wanted to know how HR should handle situations where salaries fluctuate, causing an impact on ESI contributions (specifically when the salary is less than or more than 10k). In cases where ESI deductions have been made incorrectly, resulting in an overpayment, how should the refund be processed at the end of a quarter?

Hi Puja,

First of all, there is no refund treatment in the ESI Scheme. Once you have deposited the ESI, it means it's gone. Now, as I have already mentioned, there are a few allowances that are not included in the salary for the purpose of coverage under the ESI Scheme, but they attract ESI deductions. For example:

1. Overtime
2. Performance Incentive (Paid on a Monthly basis)
3. Production Bonus (Paid on a Monthly Basis)

If the salary of an employee varies by less than 10K after including those payments, then the employee will still fall under the preview of the ESI scheme, and contributions will need to be paid by both the employee and the employer. An employee can only be exempted from the ESI when their wages exceed 10K, excluding the allowances mentioned above. The exemption will be applicable from the next following contributing period.

Please let me know if you need further clarification on this matter.

Thank you.

Dear All,

Please inform me which document I will submit for E.S.I. 6-month return with all 6-month challan and any penalty for being late. The employee strength is more than 200. Please help me.

Thank you. :(:-x:x

Yes, you have to submit all 6 months' challan along with Form No. 6, and late payment charges will be assessed by the Inspector when he visits the establishment.

Dear All,

Can anyone guide me on the following?

1) An executive who was earning Rs. 9,000 received an increment of Rs. 3,000, making his salary Rs. 12,000. When can we stop the deduction of ESIC? Can we stop the deduction immediately, or is there a waiting period? The current company is still deducting ESIC, and according to the company, they must continue deducting until March 2009, after which they will cease the deduction. Is this an ESIC rule?

2) Regarding PF deductions, should the deduction start from the first month's salary? Can a company begin the deduction after 6 months, upon confirmation, or even after one year? What are the exact rules for PF deductions?

Kindly revert back.

Kumar

Dear Mr. Colig,

Regarding ESI and PF deductions on the basic salary plus D.A. or gross salary, what is the minimum wage for an employee? If the salary is less than the minimum requirement, how much is the contribution from the employee and the employer?

PF is deducted at 12% of the basic pay from the employee's salary. The employer also contributes the same amount (12% of the basic pay) to the PF account of the employee. ESI is deducted only when the gross salary is less than Rs. 10,000. The employer's contribution is 4.75% of the gross salary, and the employee's deduction is 1.75% of the gross salary.

Thank you.

How to apply PF at the starting stage? What is the implementation process (calculation of basic, less than minimum wage, etc.)? Could we deduct PF of any employee whose salary is 2700 Rs for 26 days?

Please let me know if you need any further assistance.

Hello, good morning. Happy Holi to all of you.

Sir, I have a question relating to PF calculation. What will be the ratio to calculate the Basic? For example, the minimum wage in Gujarat is 61.50, and 52.20 is other allowance, totaling a minimum wage of 113.7 rupees. Now, please tell me what will be the Basic and how I will calculate it. Please explain the process to calculate.

Dear Rajeev,

I read your reply to Puja that there is no refund treatment in the ESI Scheme. Once you have deposited the ESI, it means it's gone. Is there any clause or act written that states no refund for ESI deposited? I have been questioned by employees.

Please help... 😕

Thank you so much.

Regards,
Sanjay

Dear Sanjay,

What sort of refund are you looking for?

ESI is a social security scheme that provides insurance to working employees against any illness or accident inside or outside the factory in connection with their work.

Hi Rajeev,

We overcontributed to the ESI contribution for the employer portion in one of the months. Now, we want to recover the excess amount. How can this be done?

Dear Friends,

I would be interested in knowing the different types of benefits that are mandatory on the part of the company and what is the minimum requirement.

1. Gratuity and Provident Fund: What is the percentage (%) the employer and employee have to contribute? Is it calculated from Basic Salary or Gross?

1.2. Is it mandatory to cover all employees from the date of employment?

1.3. After how many years are employees eligible for gratuity and PF benefits? Does that include the interest from the date of deposits?

1.4. If employees resign from the organization before 5 years and don't want to continue their service, in that circumstance, is the employee eligible for Gratuity and Provident Fund?

2. How is ESI Calculated? What percentage (%) is the Employer and Employee contribution?

2.1. If the Employer covers employees better than the ESI scheme, will it be mandatory to cover them under the ESI Act as well?

3. What are the other areas to be covered under the law?

4. How many national holidays are there for the private sector?

Saji

Hi, I am Dhanpal Babu. I would like to know the various formats of HR processes and their related formats, such as recruitment, interview assessment, appointment letter, experience letter, and record.

Dhanpal

For ESi Returns, you need to deposit duplicate copies of the last 6 months' challans and all details related to ESI deductions in the past 6 months, i.e., ESI deductions and monthly contributions. Then, get it verified by a Chartered Accountant (CA) and attach the details of all present employees in your organization.

Daljeet Kaur

Respected sir,

I want to know the full compensation system with full forms, i.e., P.F., D.A., ESI, etc. Kindly reply to me as soon as possible.

Dear Venumadhav Reddy,

ESI Half-yearly returns will happen twice a year, i.e., on 12th May & 11th Nov. Form-5 is the Return of Contribution for Half-yearly Returns form, and Form-6 is the Register of Employees.

ESI Challans are due before the 16th of every month, with a grace period of 5 days. PF Challans should be submitted before the 15th of every month, with a grace period of 6 days.

PF Annual Returns (Form-3A & Form-6A) need to be sent to the PF Office by 30th April every year.

Regards,
Charvaka Reddy

Hi,

How to ask questions during interviews about PF and ESIC? I kindly request you to share your experiences.

By Rajipriyaa

Dear Mr. Reddy,

Is the ESI process cumbersome? Please let me know the process in detail and also generally how much does any consultant charge for a size of establishment that owns 900 employees.

Please advise.

Regards,
Kiran

I am interested in learning about ESI rights from the beginning onwards, as I want to understand the process from when a person becomes eligible for these benefits. I would like to learn about the detailed process of ESI, starting from the declaration form. I hope someone can assist me with this. I would be very grateful for your help.

Regards

Can anyone please suggest what is the current slab for ESIC deduction and if it is applicable to what type of salary (Net, CTC, or Gross).

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Full Details of PF and ESIC

Hi Sheetal, I have recently joined a new company, and I am responsible for managing PF and ESIC, but this is my first time dealing with these aspects. I kindly request guidance from experienced individuals on how to initiate the process. Could you please provide me with details on the necessary forms, challans, and other formalities that I need to complete?

Thank you and regards,
Sheetal

We started a software company. We would like to calculate PF for my employees. What is the PF process? Please guide me.