Questions on ESIC & EPF for Housekeeping Companies
1) When should a housekeeping company start providing ESIC & EPF?
2) Is there an employee limit under which an organization can be exempt from ESIC & EPF?
3) What is the process for implementing ESIC & EPF?
4) What are the laws associated with ESIC & EPF?
5) What part of the salary should be deducted, and at what percentage?
6) What are the contributions from employees and employers?
7) If an organization provides services and is not eligible to pay ESIC-EPF, should the client pay ESIC-EPF for employees?
And a general conclusion, please.
Thanks,
Sarosh
From India, Delhi
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1) When should a housekeeping company start providing ESIC & EPF?
2) Is there an employee limit under which an organization can be exempt from ESIC & EPF?
3) What is the process for implementing ESIC & EPF?
4) What are the laws associated with ESIC & EPF?
5) What part of the salary should be deducted, and at what percentage?
6) What are the contributions from employees and employers?
7) If an organization provides services and is not eligible to pay ESIC-EPF, should the client pay ESIC-EPF for employees?
And a general conclusion, please.
Thanks,
Sarosh
From India, Delhi
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38
Let me first clarify myself. What I understand is that yours is a firm providing housekeeping services to various companies. Obviously, your employees are sent to the sites of the companies for work such as watch and ward, gardening, cleaning, waste collection, etc.
In such a situation, no matter how many employees you have, the principal employer to whom you provide service is covered under the PF and ESI Act. Your employees must be registered under these acts under the caption of contract workers through the employer's code. Alternatively, you may independently go for registration of your firm under these Acts by applying. Since you are not engaged in any manufacturing activity, a minimum of 20 persons would be required to seek coverage. The documents for such coverage will include ownership details, PAN, office address proof, bank account details, salary sheet and muster roll, balance sheet, etc.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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In such a situation, no matter how many employees you have, the principal employer to whom you provide service is covered under the PF and ESI Act. Your employees must be registered under these acts under the caption of contract workers through the employer's code. Alternatively, you may independently go for registration of your firm under these Acts by applying. Since you are not engaged in any manufacturing activity, a minimum of 20 persons would be required to seek coverage. The documents for such coverage will include ownership details, PAN, office address proof, bank account details, salary sheet and muster roll, balance sheet, etc.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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From the query, I understand that you are new to the concept of various labor welfare legislations. I suggest you buy at least the bare Acts of various legislations such as ESI, EPF, Payment of Gratuity, Labor Welfare Fund, Employees' Compensation, etc., refer to them, and try to clear your doubts through this forum. Otherwise, the replies of our learned members may not be useful for your practical purposes. I hope my seniors agree with me.
Regards.
From India, Mumbai
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Regards.
From India, Mumbai
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We have outsourced transporters in our company. These individuals have no more than 1 or 2 vehicles. Should they be included in EPF and ESI contributions?
Prior to commencing operations, are the civil work laborers eligible for ESI and EPF coverage? Please provide guidance on this matter.
Thank you,
Sathish Kumar
From India, Kolkata
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Prior to commencing operations, are the civil work laborers eligible for ESI and EPF coverage? Please provide guidance on this matter.
Thank you,
Sathish Kumar
From India, Kolkata
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The central idea of the ESI and EPF Act is to cover the persons engaged for the work of the establishment. Now, if any person puts in their labor and receives charges from your company, that is chargeable under these two acts. For example, if you engage a gardener, security watchmen, etc., either directly or through a contractor, payments made for such work are chargeable. In the case of transport, if they are booked as mere transport charges, then they are not chargeable under these acts. However, if the same is shown and includes loading and unloading charges, the loading/unloading charges will attract the law.
As regards civil work, I think no ESI and PF are chargeable as your establishment was not set up until the completion of construction. However, once it is set up, anything paid for additional civil construction or repairs is chargeable under these acts.
Hope you have the due clarification.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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As regards civil work, I think no ESI and PF are chargeable as your establishment was not set up until the completion of construction. However, once it is set up, anything paid for additional civil construction or repairs is chargeable under these acts.
Hope you have the due clarification.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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Challans for EPF ESIC.zip
ESIC and EPF forms.XLS
LABOR WELFARE PRACTICES.doc