Do I Need ESI and PF Codes for My Small Team of Four Employees? Seeking Guidance!

As a service provider, I have four employees with salaries not exceeding 13000/-. Do I need to obtain ESI and PF codes? I also need to deduct ESI contributions from my employees' salaries.

No need to deduct as you have not yet reached the number of employees that are mandatory to be registered for.

Hi MK50,

You have not reached the required number of employees to obtain the code. Hence, it is not applicable to your organization. However, if you are deploying any employees to work at a client's location, the client may request the code. If you don't have the code, the client may deduct the amount from your bills and pay the contribution using their code. If you are providing services from your own office or location, the code is not required.

Whenever you are required to work in client places where the client is covered under ESI, then submit a split bill with labor cost, material cost, spares cost, and cleaning materials cost separately. The ESI deduction would be made only on the labor cost.