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.