Dear All,
I am working in a call center. There is a high attrition rate. We pay PF and ESI, and when an employee leaves the organization, I want to know if an employee can be taken for 3 months on a salary basis without PF & ESI deductions. Please help.
From India, Mumbai
Acknowledge(0)
Amend(0)
I am working in a call center. There is a high attrition rate. We pay PF and ESI, and when an employee leaves the organization, I want to know if an employee can be taken for 3 months on a salary basis without PF & ESI deductions. Please help.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Manjula,
No, you can't take them on a salary basis without PF or ESIC. It is mandatory for the employer to pay PF & ESIC for each and every employee. Some employers do not show new employees on the muster and also do not deduct ESIC, PF, and P-Tax from their wages for two to three months. You can go for the same, but this is the wrong practice.
From India, Nasik
Acknowledge(0)Amend(0)
48No, you can't take them on a salary basis without PF or ESIC. It is mandatory for the employer to pay PF & ESIC for each and every employee. Some employers do not show new employees on the muster and also do not deduct ESIC, PF, and P-Tax from their wages for two to three months. You can go for the same, but this is the wrong practice.
From India, Nasik
Acknowledge(0)Amend(0)
If you take them as trainees for three months on payment of stipend, you need not pay P.F contribution but you need to pay ESI contribution. B.saikumar Hr & labour Law advisor. mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
In fact, I want to modify my reply. Since the Standing Orders Act is not applicable to you as you are not an industrial establishment within the meaning of the Standing Orders Act, even if you appoint them as trainees, I am afraid you cannot escape liability even under the P.F. The better option is to appoint them as apprentices under the Apprentices Act 1961 (if the Act covers your establishment) since they are not covered under both the P.F. Act and the ESI Act.
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
No you can't take any outside employees as an Apprentice,There are some Government ITI institute from whom you can take the candidates as a Apprentice for the said period and Within seven days from the date a trade apprentice joins an establishment, the employer shall prepare the return in form Apprenticeship – 4 in Schedule-III in duplicate and shall submit one return to the Regional Director or State Apprenticeship Adviser as the case may be, and the other to the Principal or Head of the Institute where Basic Training or Related Instructions shall be imparted.
But most probably Apprentice are taken in manufacturing unit for technical position for giving Basic Training or Practical Training.
From India, Nasik
Acknowledge(0)Amend(0)
But most probably Apprentice are taken in manufacturing unit for technical position for giving Basic Training or Practical Training.
From India, Nasik
Acknowledge(0)Amend(0)
You can set their basic salary above $6,500 so that PF will not be applicable to them. Additionally, if you increase their gross salary to over $15,000 per month, you will not need to pay for PF and ESIC.
Hope this information is helpful.
Regards,
Derek Gomes
From India, Nagpur
Acknowledge(0)Amend(0)
Hope this information is helpful.
Regards,
Derek Gomes
From India, Nagpur
Acknowledge(0)Amend(0)
I totally agree with Ganesh Chavan regarding "Apprentice".
Good suggestion: "You can make their basic salary above 6500 so PF will not be eligible for them, and you can make their gross salary above 15,000 per month. Then you need not pay for PF and ESIC." But you should pay the admin charges of both Social Security Acts. There is no other option available.
Thanks.
From India, Thana
Acknowledge(0)Amend(0)
Good suggestion: "You can make their basic salary above 6500 so PF will not be eligible for them, and you can make their gross salary above 15,000 per month. Then you need not pay for PF and ESIC." But you should pay the admin charges of both Social Security Acts. There is no other option available.
Thanks.
From India, Thana
Acknowledge(0)Amend(0)
Dear Gulanar, In my organization, Probation period for new employee is Six months,but company has right to extend it. It varies from company to Company.
From India, Nasik
Acknowledge(0)Amend(0)
From India, Nasik
Acknowledge(0)Amend(0)
Hi all,
1. Please let me know what forms we need to submit to the PF office for claims.
2. Could you provide a detailed explanation of the procedure, and are there any restrictions on adding employees to PF?
3. Please inform me about the basic rules regarding PF.
Thank you.
From India, Bangalore
Acknowledge(0)Amend(0)
1. Please let me know what forms we need to submit to the PF office for claims.
2. Could you provide a detailed explanation of the procedure, and are there any restrictions on adding employees to PF?
3. Please inform me about the basic rules regarding PF.
Thank you.
From India, Bangalore
Acknowledge(0)Amend(0)
can anyone guide me, our company is not paid PF & ESI contribution since last six months. now if we pay the same what is the penalty we have to bear.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi all,
On behalf of my company, I am promoting this query on how to apply and what formalities a company should follow for the following:
1. Labor License Certificate
2. VAT & Sales Tax Registrations for supporting hardware requirements
3. Import-Export License Registration
Please let me know as soon as possible. This is very urgent for me to know.
Thanks and Regards,
Uma
From India, Hyderabad
Acknowledge(0)Amend(0)
On behalf of my company, I am promoting this query on how to apply and what formalities a company should follow for the following:
1. Labor License Certificate
2. VAT & Sales Tax Registrations for supporting hardware requirements
3. Import-Export License Registration
Please let me know as soon as possible. This is very urgent for me to know.
Thanks and Regards,
Uma
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Manjula,
I do agree with Ganesh about the 'Apprentice ITI institutes'. Also, PF will not be applicable in case the Basic wage goes above Rs. 6,500/-. Additionally, if their Gross salary is raised to above Rs. 15,000/month, PF and ESIC are not applicable. However, I am not so sure if your existing salary matrix can adjust with any offshoot hike for such recruits.
Anyways, wish you all the best!
From India, Madras
Acknowledge(0)Amend(0)
I do agree with Ganesh about the 'Apprentice ITI institutes'. Also, PF will not be applicable in case the Basic wage goes above Rs. 6,500/-. Additionally, if their Gross salary is raised to above Rs. 15,000/month, PF and ESIC are not applicable. However, I am not so sure if your existing salary matrix can adjust with any offshoot hike for such recruits.
Anyways, wish you all the best!
From India, Madras
Acknowledge(0)Amend(0)
Hi Pratixa,
PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- or less above that PF is not deducted.
1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
EDLI - Employee deposit link insurance
EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.
Provident fund is calculated towards the employers is 13.61%
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%
ESIC calculation:
-------------------
In this ESIC, it includes the medical benefit both for the employee and employer.
It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.10000/- p.m
Employee side - 1.75% and Employer side - 4.75%.
So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-
Employer 8000*4.75% = 380/-
Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 10000/- gross per month will not be applicable under ESIC act.
2. 20 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 10000/- or less per month.
Apart from that there is a tax deduction., it includes the Income & professional tax.
CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly)
gross pay + employers pf+employers ESI + bonus = CTC
i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
I think this calculation will be helpfull to you.....
Regards,
uma.....
From India, Hyderabad
Acknowledge(0)Amend(0)
PF is deducted on Basic salary i.e Basic + DA is Rs. 6500/- or less above that PF is not deducted.
1) Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
2) Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
[ 13.61 % = 3.67 % PF + 8.33 % Pension Scheme + 1.10 % Admin. Charges of PF + 0.5 % EDLI + 0.01 % Admin Charges of EDLI ]
EDLI - Employee deposit link insurance
EPF:
Here this PF is normally deducted from the basic & DA ( dearness allowance )
Such that Basic salary - 35%
DA - 15% outof gross salary.
For (e.g) - If the gross salary of a person is Rs.9000/-p.m
Basic- 35% @ 9000 - 3150
DA - 15% @ 9000 - 1350
Total -------
4500
--------
Such that the total amount would be deducted @ 12% (i.e) PF - 540/-
The maximum ceiling limit of PF - Rs.6500/-
If the basic + DA exceeds 6500/- than the contributions is optional. Some company may have their own company policies.
Provident fund is calculated towards the employers is 13.61%
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%
ESIC calculation:
-------------------
In this ESIC, it includes the medical benefit both for the employee and employer.
It has been calculated on the basic of gross pay per month and maximum limit is upto Rs.10000/- p.m
Employee side - 1.75% and Employer side - 4.75%.
So if the gross of an employee is 8000/- p.m his contribution would be 8000*1.75% = 140/-
Employer 8000*4.75% = 380/-
Therefore Net pay = Gross pay - Total deductions
1. Those who are getting 10000/- gross per month will not be applicable under ESIC act.
2. 20 eligible employees to get registered in ESIC
3. Eligible employees means those who are getting gross pay upto 10000/- or less per month.
Apart from that there is a tax deduction., it includes the Income & professional tax.
CTC means cost to the company.i.e .what are all the expenses incurred by the Company for any of its employee for a particular period(monthly/yearly)
gross pay + employers pf+employers ESI + bonus = CTC
i.e THE SALARY PAYABLE AND OTHER STATUTORY BENIFTS PAYABLE BY COMPANY.
I think this calculation will be helpfull to you.....
Regards,
uma.....
From India, Hyderabad
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
Creating a Competitive Salary Structure.doc
Salary Structure.zip