PF And ESI - Pf Esic [Thread 546835]

Hi,
I have joined in a private firm as HR executive having 15 employees. They have not yet registered for PF and ESI. My COO is asking me to detect PF and ESI for the employees. As a fresher i don't know where to start and what to do can some one help me out of this.
Please send the information to rami.samscse@gmail.com

Dear Rameela,
Employer has no right to keep employees EPF and ESI contribution as your establishment has not been registered under EPF and ESI. So check whether your establishment comes under ESI coverage area or not.
You can approach EPFO office for registration and now whole system has been online and its quite easier. For details regarding this topics search in CiteHR and google you will find plenty of material available.
If you need details regarding registration you may mail me on [Login to view]

Dear,

To get PF/ESI deductions implemented on employee's salary , you need to register your company under the PF and ESI Act.

PF is applicable on companies where 20 or more employees are working. In your company as 15 employees are there so it is not mandatory. However if your employer wants to get PF deducted than you can also do this voluntarily. Remember, Company once registered can't de-registered back due to decrease in number of employees.

Normally ESI is applicable on companies where 10 or more employees are working. However some states have kept minimum number for registration as 20 . A few states have not extended this coverage to medical and educational institutions.

Hence check if your state offers more relaxation or not .

Once registration is done you can start deducting PF/ESI. You may need to get the backdated ESI registration right from the day of its applicability and hence may need to deposit arrears of ESI contributions to ESIC.

You calculate PF/ESI as follows:

Employee PF=12% of Basic.

Employer PF=13.61% of Basic. (8.33% +3.67%+1.1%+.5%+.01%)

Employee ESI=1.75% of gross

Employer ESI=4.75% of gross.

Remember,

For PF calculation the lowest basic should not be lesser than minimum wage ie Basic of every salary breakup should be equal to or more than minimum wages of your state.

For further clarification, you may write back. ..

Mr. Roy w.e.f sep-15 the admin charges has been reduced from 1.1% to 0.85%. So employer contribution would be 13.36%.

Shri Suni,
Yes you are right. The admin charges on PF has been changed from 1.1 % to .85%. As a result, the minimum administrative charges would be Rs. 25 for every non functional firm having no contributory member and Rs.200 for any other establishments.
However thanks for putting your comments.