Starting an IT Company with 20 Employees: Do I Need to Deduct PF and ESI?

Hi, I recently started my own IT company with a total of 20 employees in the team. I have limited knowledge regarding the deduction of PF and ESI, and I initially kept them on a salary of 7k during the starting period. So, is it necessary for me to deduct PF and ESI?

Sir, yes, you are required to get your unit registered under both Acts - ESI Act, 1948 as well as EPF & MPs Act, 1952. In the case of ESI, you are also required to examine and confirm whether the area where your unit is located is an implemented area under section 1(3) of the said Act. The online registration procedure may be available in the form of literature/material published by the respective departments on their websites, and you can download and take action accordingly.

Yes, it's mandatory to deduct ESI and PF as statutory compliance. If you pay more than 15,000, then there is no need for ESI, but you mentioned 7,000. Therefore, it is necessary to deduct ESI and PF.

Sir, yes, it is desirable to register your company under the PF and ESI acts. This will not only provide your employees with job security but also, if you are planning for long-term business, it would be mandatory.

Dear member, for over 25 years, the qualifying period of service for eligibility to become a member of EPF has been abolished. Now, as soon as a person joins any employment, they are required to be enrolled as a member, and contributions are required to be deducted and paid, including the employer's share. Therefore, in my opinion, there is no alternative but to ensure compliance regarding casual, temporary, or any type of employees, even those engaged for only one day.