Understanding Employee Benefits: Is ESIC Mandatory When PF is Already Provided?

Respected Seniors, is it compulsory to give ESIC benefits if PF benefits are provided to an employee?

Regards, Neha

Registration of ESIC

Registration of ESIC is mandatory, as the PF coverage manpower is more than ESIC manpower eligibility. However, the contribution is payable for the employees who draw an average gross salary below ₹21,000.

Thank you, Sir. But if we provide ESIC benefits to an employee without offering PF benefits, is that acceptable?

Understanding PF and ESI Benefits

PF and ESI provide separate benefits; they are not substitutes for one another. Denial of benefits in either of the schemes could have very serious legal implications, including penal prosecution proceedings against top management. Try to understand the scope of both the schemes.

Applicability of ESI and PF Schemes

The ESI scheme is applicable to all factories and other establishments as defined in the Act, with 10 or more persons employed in such establishments. Beneficiaries whose monthly wage does not exceed Rs 21,000 are covered under the scheme.

PF Scheme Requirements

Organizations with 20 or more employees are required by law to register for the EPF scheme.

Eligibility and Compliance

Regarding the benefit, whoever is eligible as per the salary must receive the benefit; otherwise, it will be considered non-compliance.

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