How Can Employers Formally Declare Non-Deduction of PF and ESIC?

Please assist with a format or declaration for the employer regarding not deducting PF and ESIC. Thank you.

Is a declaration by the employee required?
No employee who comes under the purview of ESI can declare that their ESI should not be deducted or that they should not be covered by ESI. Obviously, if their salary exceeds Rs 21,000, they will not be covered by ESI, but for that, no declaration is required. Similarly, no employee who is coverable by PF can declare that their PF should not be deducted. However, if the employee joining the company is drawing more than Rs 15,000 as a monthly salary, then the employer can exclude them from PF on the ground of a declaration in Form 11 in which they should declare that they were not previously covered by EPF.

Please provide further details about your query so that we can respond accordingly.

Sir, we need to provide a certificate to one of our clients, where one of our team members is working for them in accounts. The salary is paid by them to us. The certificate should state that we do not deduct PF & ESIC. For this purpose, a certificate/declaration is required.

That means you are a contractor and you have deployed one of your employees on the site of an employer (Principal employer), and you need to inform him that ESI and EPF are not applicable to that employee, right?

Declaration for Non-Applicability of ESI and EPF

There is no legal format for that declaration. You can simply declare that the employee in question is receiving a salary above the threshold limit prescribed under the ESI Act and EPF & MP Act, and therefore, he is not covered under these Acts.

The principal employer will be satisfied with the explanation regarding ESI if the employee's salary is above Rs 21,000. However, he may inquire further about PF deductions because PF is compulsory for employees whose salary at the time of joining is not more than Rs 15,000, specifically the basic salary component. Furthermore, an existing PF member cannot be excluded from PF if his salary exceeds Rs 15,000 at the time of joining your establishment.