Understanding PF and ESIC Eligibility: Am I Liable If My Salary Drops Below Rs. 15,000?

Hello friends and seniors,

I have a query regarding Provident Fund and ESIC. If my salary is Rs. 20,000 per month and at the time of joining, I was exempt from PF and ESIC but worked for 15 to 20 days and received a salary below Rs. 15,000, how will it be treated? Am I liable for PF and ESIC or not? Please describe briefly about the rules and if there are any notifications, please inform me.

This is important and urgent.

Bipin

Kindly let me know the latest ESIC notification limit clarity.

Regards,
Anupama

I joined the company and initially did not subscribe to EPF. Accordingly, the company credited 12% of basic to my salary as special pay. Next FY, I subscribed to EPF, and then this 12% + my contribution of 12% got credited to my EPF account. Now EPF audit wants the company to recover the 12% paid to me by the company during the non-EPF subscription period from me. Is this legally correct?

Dear Patel, First of all, please provide your salary breakup for further advice.

Thank you.

Has the ESIC Notification for an increase in the limit to 21000 come into effect? I have only seen the draft of the same; I did not see the approved version. Kindly post if any of you know about it.

Thank you, Glidor, for the prompt reply. Could you please share the EPF rule for the recovery?

EPFO Membership and Contribution Rules

As per the records of EPFO, the date of joining and the date of contribution differ, which is the reason for the recovery notice. Every member should be a member of EPFO from the date of joining. Please read Rule 26A, Paragraph (2).

26A. Retention of Membership

(1) A member of the Fund shall continue to be a member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under Section 17 of the Act or an order of exemption under Paragraph 27 or Paragraph 27A.

Explanation: In the case of a claim for a refund by a member under Subparagraph (2) of Paragraph 69, the membership of the fund shall be deemed to have been terminated from the date the payment is authorized to him by the authority specified in this behalf by the Commissioner, irrespective of the date of the claim.

(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies, shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in Paragraph 29.

Provided that subject to the provisions contained in Subparagraph (6) of Paragraph 26 and [in Paragraph 27], or Subparagraph (1) of Paragraph 27-A, where the monthly pay of such a member exceeds [six thousand and five hundred rupees], the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of [six thousand and five hundred rupees], including [dearness allowance, retaining allowance (if any), and] cash value of food concession.

Sir, my CTC is 1.80 lakh yearly, and I am getting approximately 25-30 thousand incentives per month. Am I eligible for ESI or not?

Amount in the master roll and pay register matters for entitlement in ESIC. If it's below $15,000 per month, then one is eligible. Wait for the new notification date of implementation; it may also cover higher-scale salary holders.