I am working in a small company, and I am responsible for payroll. Currently, we have 30 employees, and we are planning to increase our workforce through recruitment. With 30 employees currently, I would like to know if it is mandatory to include PF and ESI deductions in the pay slip. Additionally, please advise if there are any deductions apart from HRA, Medical Allowance, Special Allowance, and Dearness Allowance.
Regards,
SYED
From India, Chennai
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2Regards,
SYED
From India, Chennai
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ESI is applicable on 10 members & EPF is applicable on 20 members , so you need to show both deduction on pay slip
From India, Dharamsala
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From India, Dharamsala
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Social Security Acts: ESI and PF
ESI and PF are known as social security acts, and it is compulsory to comply with them. Please visit the EPFO website; it may shed light on all your queries.
ESI Requirements
Regarding ESI, if an employee's salary is less than or equal to ₹15,000, then it is mandatory. Please check your payroll. If the total number of employees in an organization under the ESI margin exceeds 10, then it is mandatory to get registered. If not, please obtain a code with ESI and make nil returns until you meet the threshold.
PF Requirements
The above-mentioned requirement does not apply to PF. It is based solely on the number of employees.
Regards.
From India, New Delhi
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ESI and PF are known as social security acts, and it is compulsory to comply with them. Please visit the EPFO website; it may shed light on all your queries.
ESI Requirements
Regarding ESI, if an employee's salary is less than or equal to ₹15,000, then it is mandatory. Please check your payroll. If the total number of employees in an organization under the ESI margin exceeds 10, then it is mandatory to get registered. If not, please obtain a code with ESI and make nil returns until you meet the threshold.
PF Requirements
The above-mentioned requirement does not apply to PF. It is based solely on the number of employees.
Regards.
From India, New Delhi
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You need to show ESI & PF on payslip. All components that are part of salary are to be considered for ESI.
From India, Bangalore
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From India, Bangalore
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Yes, PF and ESI come under the Social Security Act, and these are mandatory for all organizations where 10 or more ESI and 20 or more PF employees are working. It should be mentioned in the Salary Slip.
Salary Components
The most important component of the salary is the Basic Salary, i.e., (Actual Basic + VDA). Along with the Basic Salary, you can add any kind of allowance according to your management's views to make up the gross amount.
Regards.
From India
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Salary Components
The most important component of the salary is the Basic Salary, i.e., (Actual Basic + VDA). Along with the Basic Salary, you can add any kind of allowance according to your management's views to make up the gross amount.
Regards.
From India
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Of course, Conveyance can be one of the allowances in a Salary Slip and can be made non-taxable to a certain amount if the employee gives a declaration as per IT rules. There is a specific provision in IT related to this. HRA is also made non-taxable if an employee provides a declaration and proof that he is residing in a rented house. These are some of the titles that are usually given in Salary bifurcation so that one can get tax benefits legally. I am not knowledgeable in Taxation, but any member who is well aware of tax rules is requested to comment.
Additional Salary Components
Also, after Basic, DA, HRA, salary titles can be anything, like Education Allowance, Medical Allowance, Travel Allowance, Fuel Allowance, Newspaper Allowance, etc. There are many discussions on this site itself. One such discussion I have come across is: https://www.citehr.com/259425-convey...lary-slip.html
From India, Mumbai
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Additional Salary Components
Also, after Basic, DA, HRA, salary titles can be anything, like Education Allowance, Medical Allowance, Travel Allowance, Fuel Allowance, Newspaper Allowance, etc. There are many discussions on this site itself. One such discussion I have come across is: https://www.citehr.com/259425-convey...lary-slip.html
From India, Mumbai
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PF & ESI.zip
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