Basic more then Rs.15000/- & Salary is more then Rs.21000/- in that case PF & ESIC contribution is compulsory?

Phychology
Dear all, If salary basic more then Rs.15000/- & Salary is more then Rs.21000/- in that case PF & ESIC contribution is compulsory?
jiyakumari781
No it is not compulsory. if basic salary more than 15000 then Pf is not compulsory and if Gross salary is 21000 then Esic is not compulsory.
mahasewari_india@yahoo.co.in
Dear All,
Basic is More than 15,000 and Salary is more than 21000 then we have dedcuted the EPF only and not for ESIC
regards,
Sathyanarayanan
NI Consulting Services pvt limited
81, Peters Road
Royapettah
Chennai-600014
korgaonkar k a
Dear Friends,
These are the basic questions in labour law compliance and we should not make mistake in answering it.
Correct answers are as under:
As regards to ESI:
Once salary i.e. gross exceeds Rs. 21000, the employee is out of ESI from next contribution period, compulsorily.
As regards to PF:
Salary i.e. basic plus DA component is more than Rs. 15000 and employee is not covered under PF earlier, it is up to both employer & employee whether to go for PF or not. However, if employee is covered under PF before, PF is compulsory.
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