An employee has a CTC of 20000 and he wants only ESI service. he didn’t want the PF facility .. Is it possible to give only ESI service
From India, Delhi
Acknowledge(0)
Amend(0)

Hi, PF and ESI are statutory and compulsory, not as per the wish of the employees. You can explain to the employee about the benefits of PF as a compulsory saving for their future, pension facilities after 9.6 years of service, EDLI benefits, etc.
From India, Madras
Acknowledge(0)
Amend(0)

The decision on whether or not to provide PF to an employee is determined by law, not by the desires of an individual employee. If the person has a starting salary (when they joined your organization) of more than ₹15,000 (computed at gross less HRA) and does not have a PF account (never had one or has withdrawn all the money), then they may be eligible for exemption. Please refer to the PF regulations for more information.

Please note that if they are already under PF, it cannot be stopped just because their salary has increased. You need to inform the employee that it is a statutory obligation and cannot be skipped. In case they are unaware of the benefits, I suggest you inform them as well.

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear HR CLAL,

Some additional comments on the issue following Mr. V.M.L's reply. You have mentioned that the CTC sums up to Rs. 20,000.00 per month. However, CTC is an all-inclusive cost of employment, which comprises components falling under the definitions of the term wage under both the ESI Act, 1948, and the EPF Act, 1952, including the excluded ones. Therefore, the threshold wage under the ESI Act, being above the CTC, means neither the employee nor the employer has any choice in the enrollment.

Regarding enrollment into EPF, the wage threshold is Rs. 15,000.00 per month only. Out of the CTC of Rs. 20,000.00 per month, if the components constituting wages are Rs. 15,000.00 or below, then there is no choice to be outside the EPF. Moreover, if he is already a member of the EPF, then he has to continue, of course, limiting the contribution to the threshold amount of wages.

From India, Salem
Acknowledge(0)
Amend(0)

If the employee’s previous pf account has been closed. And he don’t want to continuous again
From India, Delhi
Acknowledge(0)
Amend(0)

If the conditions I mentioned above are fulfilled, then yes if his starting salary was less than 15,000, then no
From India, Mumbai
Acknowledge(0)
Amend(0)

If the person has a starting salary (when he joined your organization) of more than ₹15,000 (computed at gross less HRA) and does not have a PF Account (never had or withdrawn all the money), then he may be eligible for exemption.

Can you provide any database for this?
(Please refer to the PF regulations for the same.)

From India, Delhi
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.