Hi,
I have recently joined the newly set up BPO company. I request all the members to advise me on the following issues:
(a) Since the company is newly set up, how much time is required to start the PF cutting and ESI of newly recruited employees.
(b) Since the attrition rate is very high in the BPO sector, those who will be leaving within 6 months, what is the procedure for PF and ESI in respect of them.
Thanks, KJ Rao
From India, New Delhi
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2I have recently joined the newly set up BPO company. I request all the members to advise me on the following issues:
(a) Since the company is newly set up, how much time is required to start the PF cutting and ESI of newly recruited employees.
(b) Since the attrition rate is very high in the BPO sector, those who will be leaving within 6 months, what is the procedure for PF and ESI in respect of them.
Thanks, KJ Rao
From India, New Delhi
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Hi Mr. Rao,
The formalities for ESI are that you must have a minimum of 20 employees, regardless of whether they are receiving a salary of more than 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Those earning 10001/- or more will be exempted from ESI.
Yes, ESI and ESIC are the same. ESIC stands for Employee State Insurance Corporation.
The employer should register the factory or establishment with the ESI Corporation within 15 days of the ESI Act becoming applicable. The declaration of registration is to be filled in Form 01, along with a separate sheet containing the name and address of the establishment, the number of employees, the nature of duties, and the name, designation, and address of the manager controlling such persons, in the case of offices located outside. Once satisfied with the application, the ESI regional office will assign a code number to the employer.
Only after this, can you register your employees with the ESI. They must fill out a declaration form, FORM 1, clearly stating their gender as Male or Female. All declaration forms should be countersigned by the employer.
Next, prepare a return of declaration in Form 3 separately for Male & Female within 10 days of submitting the declaration form.
Subsequently, every employee shall be allotted a temporary identification number.
Even for the PF Act, a minimum of 20 employees is required.
Every employer of an establishment covered by the Employee Provident Fund Act should submit in Form 5A (in duplicate) to the commissioner, details of all branches and departments, owners, directors, partners, or any other person controlling its affairs within 15 days of the scheme becoming applicable.
Upon receiving Form 5A, the commissioner will verify the details submitted and, once satisfied, will allocate an Establishment Code No.
I hope this clarifies things for you.
Feel free to reach out if you encounter any difficulties understanding.
Regards,
Amit Seth.
From India, Ahmadabad
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The formalities for ESI are that you must have a minimum of 20 employees, regardless of whether they are receiving a salary of more than 10000/- or less. The maximum ceiling for ESI contribution is up to 10000/- Gross/Month only. Those earning 10001/- or more will be exempted from ESI.
Yes, ESI and ESIC are the same. ESIC stands for Employee State Insurance Corporation.
The employer should register the factory or establishment with the ESI Corporation within 15 days of the ESI Act becoming applicable. The declaration of registration is to be filled in Form 01, along with a separate sheet containing the name and address of the establishment, the number of employees, the nature of duties, and the name, designation, and address of the manager controlling such persons, in the case of offices located outside. Once satisfied with the application, the ESI regional office will assign a code number to the employer.
Only after this, can you register your employees with the ESI. They must fill out a declaration form, FORM 1, clearly stating their gender as Male or Female. All declaration forms should be countersigned by the employer.
Next, prepare a return of declaration in Form 3 separately for Male & Female within 10 days of submitting the declaration form.
Subsequently, every employee shall be allotted a temporary identification number.
Even for the PF Act, a minimum of 20 employees is required.
Every employer of an establishment covered by the Employee Provident Fund Act should submit in Form 5A (in duplicate) to the commissioner, details of all branches and departments, owners, directors, partners, or any other person controlling its affairs within 15 days of the scheme becoming applicable.
Upon receiving Form 5A, the commissioner will verify the details submitted and, once satisfied, will allocate an Establishment Code No.
I hope this clarifies things for you.
Feel free to reach out if you encounter any difficulties understanding.
Regards,
Amit Seth.
From India, Ahmadabad
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