Guidance on Legal Compliances for New Business Operations in Mumbai
Currently, I am working with a fundraising company, and this company is starting its new business operations in Mumbai. We have begun the process of hiring as well (it is not a manufacturing unit), and here we may need 20-25 employees. The directors of this company have instructed me to take care of all legal compliances, right from getting the company registered for ESIC & PF to handling all employee-related forms for these two acts. Considering this requirement, I seek your guidance on the following questions:
1. What are the eligibility criteria for PF & ESIC from the viewpoint of employees and employers?
2. How can we get the company registered under PF & ESIC?
3. What type of deductions are required from the employee and employer sides? What forms do I need to fill or have filled by employees and submit on a monthly basis to the respective department?
4. After deductions, how do we pay the deducted amount to the respective department or government? For example, do I have to personally submit that amount in their office?
(Note: The employees we are hiring have a salary bracket between 12k to 50k per month)
I am sharing with you some information that I have collected for my understanding. Kindly correct me if I am wrong anywhere.
PF Applicability for the Company
It is extended area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establishments employing 20 or more persons.
Coverage of Employees
Drawing a salary up to Rs. 15,000 per month.
Deduction
Employees 12% & employers 13.61%
ESIC Applicability
It is extended area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establishments employing 20 or more persons up to Rs. 15,000.
Coverage of Employees
Drawing a salary up to Rs. 15,000 per month.
Deduction
Employer's 4.75% on gross.
Employee's 1.75% on gross.
Regards,
Aparna C.
Currently, I am working with a fundraising company, and this company is starting its new business operations in Mumbai. We have begun the process of hiring as well (it is not a manufacturing unit), and here we may need 20-25 employees. The directors of this company have instructed me to take care of all legal compliances, right from getting the company registered for ESIC & PF to handling all employee-related forms for these two acts. Considering this requirement, I seek your guidance on the following questions:
1. What are the eligibility criteria for PF & ESIC from the viewpoint of employees and employers?
2. How can we get the company registered under PF & ESIC?
3. What type of deductions are required from the employee and employer sides? What forms do I need to fill or have filled by employees and submit on a monthly basis to the respective department?
4. After deductions, how do we pay the deducted amount to the respective department or government? For example, do I have to personally submit that amount in their office?
(Note: The employees we are hiring have a salary bracket between 12k to 50k per month)
I am sharing with you some information that I have collected for my understanding. Kindly correct me if I am wrong anywhere.
PF Applicability for the Company
It is extended area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establishments employing 20 or more persons.
Coverage of Employees
Drawing a salary up to Rs. 15,000 per month.
Deduction
Employees 12% & employers 13.61%
ESIC Applicability
It is extended area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establishments employing 20 or more persons up to Rs. 15,000.
Coverage of Employees
Drawing a salary up to Rs. 15,000 per month.
Deduction
Employer's 4.75% on gross.
Employee's 1.75% on gross.
Regards,
Aparna C.