Growing Company in Gurgaon: Are PF, ESIC, and Gratuity Deductions Mandatory?

Dear all,

My company has 17 employees and is growing. We will soon have over 20 employees. I need to know the following:

1. Is enrollment by the company to deduct PF optional or mandatory?
2. Is ESIC optional or mandatory?
3. Is it optional or mandatory to deduct Gratuity?

Could someone please answer these questions? Also, if any of you can send me the latest Salary calculator. My company is located in Gurgaon.

Thanks in advance.

Jagjit

Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily. The salary limit as of now is Rs. 15,000/- or less.

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, and the beneficiaries' monthly wage does not exceed Rs. 21,000 are covered under the scheme.

So, the EPF Scheme is presently inapplicable, but ESI is applicable if you are in a covered area. If so, start with ESI coverage, and when the employee strength touches 20, start PF coverage. There is no need to rush to EPF coverage as voluntary coverage will take time to process, and since you are going to add more numbers shortly, a practical approach would be to wait for the coverage.