How is ESI and PF coverage and calculation works

srinivason-k-u
Friends, Please clarify my doubts...

IF an establishment is registered under Section 8 in Tamilnadu, they have 10 employees and have more than 50 people engaged as Research Associates, Freelance and Consultants. ( Project basis )

1. How is ESI and PF coverage and calculation works
2. Since the project based people are working for different establishments, what is the best engagement method / model .

Pl share your views

Thank You,

KU Srinivason
9841099110
Madhu.T.K
If these project fellows and research associates are paid any remuneration, then there will exist employee employer relationship. Then both the ESI and EPF and all other labour Acts will be applicable to your 'establishment'. Once your establishment is covered by ESI, then it is to be decided who all are to be registered as insured employee. This is decided by the salary/ honorarium/ remuneration that you offer to them. If it is Rs 21000 or less then they should be covered by ESI. If the salary is not more than Rs 15000, they should be given EPF also. Not only ESI and EPF, other laws like Payment of Bonus Act, Payment of Gratuity Act, Maternity Benefits Act etc are also applicable to your establishment and these research associates/ project fellows.
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