PF & ESI PROCESS - what activities are being handled in an entire month & how to proceed for it?

Rajeev Verma
Dear All,
I am attaching a file containing the details of All Monthly, Quarterly, Half Yealry, Yearly return under the Various Acts. You can choose which is applicable to your industry and act accordingly. This file has been picked up from this Site only.
Also I am attaching one more file providing details about the Check List under the Various Labour Acts.
Enjoy............
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pujaparashar
Hi,
what will the treatment in ESI when a employee's salary keep on varies from 10k (more or less)
Rajeev Verma
Puja can you please explain the reason for the variation, that why it varies from 10 K (Less or excess).
If it is due the Over time then he / she will remain covered under ESI Act.
pujaparashar
Hello Rajeev,
Thanks a lot, but if the varies are due to incentive payment,bonus etc. then what will be the treatment.And what to be done when ESI is deducted when it should not be.
Rajeev Verma
Still the employee will remain cover 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 e.g. 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 OT amount the wages crosess 10 K.
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Shivani Goel
Hello Rajeev
Through your msg I got to undrstand very little thing about ESI & PF. Can you please give in a easy way so that I can understand b'coz its very tough to understand this at this stage, I am mean as beginer.
lease do tell me the calculation of SALARY
Rajeev Verma
Hi Shivani,
Just go through this link, you might find the useful information from it, but you have to concentrate, than only you will be able to understand it.
Complete Details on Payroll, Salary & Compensation
pujaparashar
can anyone please tell be what will be the treatment,when ESI is deducted when it should not be done.
pujaparashar
Hello rajeev,
Actually i came across this question in one of my interview,where the interviewer whats to know the treatment taken by HR person when salary keeps on varies and ESI is affected (salary is <,> than 10k),so if ESI is deducted when it should not be done, then how to do a refund treatment after the end of a quarter.
Rajeev Verma
Hi Puja,
First of all there is no refund treatment in the ESI Scheme, once you have deposit the ESI, it means its gone.
Now as I have already mention that few allowance are like which are not included in the salary for the purpose of coverage under the ESI Scheme, but they attract the ESI deductions.
For eg.
1. Overtime
2. Performance Incentive ( Paid on Monthly basis)**
3. Production Bonus ( Paid on Monthly Basis)**
And if the salary of an employee varies < > 10K after including those payments, than the employee will very much remain in the preview of ESI scheme and contribution will still be paid by him and by the employer.
An employee can be out of the ESI only when his wages crosses 10K, excluding the above type of all allowances. And he will be exempted from contributing towards the ESI scheme, but that will be from the next following contributing period.
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