Hello,
Can anyone tell me if Registration with ESIC & PF is necessary? I just want to know the amount of registration for ESIC & PF.
One more thing, if a person does not have 20 employees, will they be able to register with ESIC & PF? Because otherwise, big clients may not give work without such registrations.
Regards,
Hanish
From India
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1Can anyone tell me if Registration with ESIC & PF is necessary? I just want to know the amount of registration for ESIC & PF.
One more thing, if a person does not have 20 employees, will they be able to register with ESIC & PF? Because otherwise, big clients may not give work without such registrations.
Regards,
Hanish
From India
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You can register by keeping single employee also. Above 20 its become compulsory, below 20 it our desire. Regards Roshan s
From India, Madras
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From India, Madras
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Hello, Thanks for the reply. Very good piece of information indeed. I want to know more how much you will have to pay when registering with these organizations. Regards
From India
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From India
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Dear All,
Greetings!
Kindly advise on the procedures one can follow for PF withdrawal. Is it true that if one has not completed 6 months in the organization, he/she is not eligible to withdraw the PF amount? Also, please provide guidance on the contributions for the pension scheme from the PF.
Looking forward to your response.
Thanks,
Pooja
From India, Calcutta
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Greetings!
Kindly advise on the procedures one can follow for PF withdrawal. Is it true that if one has not completed 6 months in the organization, he/she is not eligible to withdraw the PF amount? Also, please provide guidance on the contributions for the pension scheme from the PF.
Looking forward to your response.
Thanks,
Pooja
From India, Calcutta
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You have to fill the Form 19 and 10 C. Along with the forms, please attach a bank statement to which you want to credit the amount and one canceled check leaf of the same.
Yes, we cannot withdraw the pension part if we have not completed 6 months of contribution. Let me explain this clearly. Employee contribution is 12%. Employer contribution is 12%, which is split like this: PF part is 3.67% and Pension part is 8.33%. If an employee has not completed 6 months, he cannot withdraw the pension part, but he can go for the PF part.
From India, Madras
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Yes, we cannot withdraw the pension part if we have not completed 6 months of contribution. Let me explain this clearly. Employee contribution is 12%. Employer contribution is 12%, which is split like this: PF part is 3.67% and Pension part is 8.33%. If an employee has not completed 6 months, he cannot withdraw the pension part, but he can go for the PF part.
From India, Madras
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very well eplained Roshan can u also tell me how can we check our PF amount statusi.e the total amount till date in PF a/c. Regards, Deepa
From India, Gurgaon
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From India, Gurgaon
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Can any one ell me from where to get ESIC Code in Thane District. Office Address Phone number whome to meet
From India
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From India
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As Roshan said, below 20, it is voluntary in respect of PF only. Further, I would like to add that in respect of ESI, there is no such "voluntary" scheme of coverage. Only upon reaching the prescribed strength (10 for factory/IT and 20 for shop/establishment/ITES), the company is coverable.
From India, Madras
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From India, Madras
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Hi Yedhulaprakash, I work in Mumbai. I would like to know the gross salary limit above which the employee need not be covered under ESIC. Emereen
From India, Mumbai
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From India, Mumbai
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Dear Emereen, gross salary of rupees 10,000/- is the limit to cover an employee into ESIC, above this amount one will be exempted to be covered. Regards, Amit Seth.
From India, Ahmadabad
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From India, Ahmadabad
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Hello Pooja,
Here are the details that you asked for. I hope they will help you understand the requirements.
The formalities for ESI state that you must have a staff of at least 20 employees, regardless of whether they earn a salary exceeding 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Employees earning 10001/- or more are exempt from ESI contributions.
The employer must register the factory or establishment with the ESI Corporation within 15 days of the ESI Act's applicability. The registration declaration should be submitted in Form 01, along with a separate sheet listing the establishment's name and address, number of employees, nature of duties, and the name, designation, and address of the manager overseeing these employees for offices located elsewhere. Upon approval of the application, the ESI regional office will assign a code number to the employer, after which employee registration with ESI can proceed. Employees must complete a declaration form, FORM 1, specifying their gender, which must be countersigned by the employer. A return of declaration in Form 3 must be prepared separately for male and female employees within 10 days of declaration submission. Subsequently, each employee will receive a temporary identification number.
Similarly, for the PF Act, a minimum of 20 employees is required. Employers subject to the Employee Provident Fund Act must submit Form 5A (in duplicate) to the commissioner within 15 days of scheme applicability, detailing all branches and departments, as well as the owners, directors, partners, or any other individuals controlling its affairs. Upon receiving Form 5A, the commissioner will review the information and, upon satisfaction, assign an Establishment Code No.
I hope this clarifies the procedures for you.
Regards,
Amit Seth.
From India, Ahmadabad
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Here are the details that you asked for. I hope they will help you understand the requirements.
The formalities for ESI state that you must have a staff of at least 20 employees, regardless of whether they earn a salary exceeding 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Employees earning 10001/- or more are exempt from ESI contributions.
The employer must register the factory or establishment with the ESI Corporation within 15 days of the ESI Act's applicability. The registration declaration should be submitted in Form 01, along with a separate sheet listing the establishment's name and address, number of employees, nature of duties, and the name, designation, and address of the manager overseeing these employees for offices located elsewhere. Upon approval of the application, the ESI regional office will assign a code number to the employer, after which employee registration with ESI can proceed. Employees must complete a declaration form, FORM 1, specifying their gender, which must be countersigned by the employer. A return of declaration in Form 3 must be prepared separately for male and female employees within 10 days of declaration submission. Subsequently, each employee will receive a temporary identification number.
Similarly, for the PF Act, a minimum of 20 employees is required. Employers subject to the Employee Provident Fund Act must submit Form 5A (in duplicate) to the commissioner within 15 days of scheme applicability, detailing all branches and departments, as well as the owners, directors, partners, or any other individuals controlling its affairs. Upon receiving Form 5A, the commissioner will review the information and, upon satisfaction, assign an Establishment Code No.
I hope this clarifies the procedures for you.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Everybody,
I'm a fresh entrant in the HR field. Can any of you let me know the ESI Act's applicability to trainees kept for 6-12 months in a company before they are confirmed?
Jyoti
From India, Delhi
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I'm a fresh entrant in the HR field. Can any of you let me know the ESI Act's applicability to trainees kept for 6-12 months in a company before they are confirmed?
Jyoti
From India, Delhi
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Hello Jyoti,
If these candidates are on the company payroll or in their manpower, then they would definitely come under ESI applicability. Once any person joins the organization, they become eligible to be covered under PF and ESI applicability.
However, if these candidates have been hired as trainees, then these Acts wouldn't be applicable to them. Trainees who are being paid a stipend are not covered under ESI and PF.
Regards,
Amit Seth.
From India, Ahmadabad
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If these candidates are on the company payroll or in their manpower, then they would definitely come under ESI applicability. Once any person joins the organization, they become eligible to be covered under PF and ESI applicability.
However, if these candidates have been hired as trainees, then these Acts wouldn't be applicable to them. Trainees who are being paid a stipend are not covered under ESI and PF.
Regards,
Amit Seth.
From India, Ahmadabad
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I think there is a mistake in the information given by Mr. Yedhulaprakash. The pension fund account number is 10, not account number 2. Account number 2 is for administrative charges, i.e., 1.10% of the PF Fund. Please refer to paragraphs F and G of the PF documentation.
Ashutosh Verma
From India, Delhi
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Ashutosh Verma
From India, Delhi
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hi Amit hru? culd u ls tell me the salary calculation pls ...... esi & pf is same for all the comp r it depends upon the comp policies reg anu
From India, Bangalore
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From India, Bangalore
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Hi Anu,
I am doing well.
The contents of the salary break-up may be as below; you can prepare it according to your own suitability. HRA would be 50 or 60% of basic. 50% in metro areas and 40% in other cities are exempted from taxes.
- Basic
- HRA
- CCA - 825/- is exempted from tax
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement of 1250/month is exempted from tax
- Gross Per Month = Sum of all the above.
- Gross Per Annum = 12*Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility provided to an employee who is not covered under ESI as the maximum ceiling for ESI is 10000/Month. Getting more than this will be covered under Mediclaim or it depends on company policy.
- Ex-Gratia/Bonus = A fixed amount as Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also called CTC.
Apart from this, Food coupons, Holiday package, and Furnishing items are included in their CTC.
Yes, ESI and PF applicability remain the same with all companies, as these are Acts and one can't go beyond the rules of Acts.
Hope this helps you to clear your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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I am doing well.
The contents of the salary break-up may be as below; you can prepare it according to your own suitability. HRA would be 50 or 60% of basic. 50% in metro areas and 40% in other cities are exempted from taxes.
- Basic
- HRA
- CCA - 825/- is exempted from tax
- Other Allowance
- Mobile Reimbursement
- Medical Reimbursement of 1250/month is exempted from tax
- Gross Per Month = Sum of all the above.
- Gross Per Annum = 12*Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility provided to an employee who is not covered under ESI as the maximum ceiling for ESI is 10000/Month. Getting more than this will be covered under Mediclaim or it depends on company policy.
- Ex-Gratia/Bonus = A fixed amount as Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also called CTC.
Apart from this, Food coupons, Holiday package, and Furnishing items are included in their CTC.
Yes, ESI and PF applicability remain the same with all companies, as these are Acts and one can't go beyond the rules of Acts.
Hope this helps you to clear your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Can you please explain the heads and %ages of Employee and Employer contribution of PF and Relavent forms used for that. Thannks
From India, Delhi
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From India, Delhi
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The minimum number of employees required is 10 to be covered under PF as well as ESI applicability. ESIC is not applicable above 10000/-. EPF is not applicable above 6500/-. If the employer wants to provide the EPF facility, they can do so.
From India, New Delhi
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From India, New Delhi
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Dear Mr. Anand,
One may apply for Voluntary PF registration even after reaching the manpower strength of 10, but the actual manpower required is 20.
In the case of ESIC registration, the minimum number of employees should be 20 covered employees (with a salary less than Rs. 10,000/-). However, if there is power usage, the number of covered employees should be 10.
Regards,
Amit Seth.
From India, Ahmadabad
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One may apply for Voluntary PF registration even after reaching the manpower strength of 10, but the actual manpower required is 20.
In the case of ESIC registration, the minimum number of employees should be 20 covered employees (with a salary less than Rs. 10,000/-). However, if there is power usage, the number of covered employees should be 10.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi, Can any one tell me what is the contribution of the Employeer and Employee in ESI and PF Contribution.
From India, Hyderabad
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From India, Hyderabad
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Hello,
The rate of contribution in PF is 12% of the basic salary from both the employee and employer sides. In the case of ESIC, the contribution is made on the gross salary, and the rates of contributions are as follows:
Employee Contribution - 1.75% of Gross Salary
Employer's Contribution - 4.75% of Gross Salary
The ceiling for the ESIC coverage is a gross salary of Rs. 15,000 per month.
Regards,
Amit Seth.
Hi, can anyone tell me what the contributions of the employer and employee are in ESI and PF contributions?
From India, Ahmadabad
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The rate of contribution in PF is 12% of the basic salary from both the employee and employer sides. In the case of ESIC, the contribution is made on the gross salary, and the rates of contributions are as follows:
Employee Contribution - 1.75% of Gross Salary
Employer's Contribution - 4.75% of Gross Salary
The ceiling for the ESIC coverage is a gross salary of Rs. 15,000 per month.
Regards,
Amit Seth.
Hi, can anyone tell me what the contributions of the employer and employee are in ESI and PF contributions?
From India, Ahmadabad
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Salary Sheet & PF PT Calculation & Challan.xls