Can We Cover an Employee Under ESIC Without Affecting Their EPF Due to Salary Deductions?

Dear Experts, I would like to inquire about a situation we are facing. We have an employee whose salary is currently 27,000/- gross, and we are considering covering him under ESIC. If we decide to deduct his salary due to non-performance, it will impact the PF amount as well. I would highly appreciate your opinion on this matter. Thank you.

Coverage under PF & ESIC

Coverage under PF & ESIC is always based on notional salary, not on the actual salary received. Contributions are paid based on the actual salary received. Here, the monthly gross of the employee (notional) is 27k. Therefore, under any circumstances, the employee cannot be covered under ESIC.

S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
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