Dear All,
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
ESI
1) For employees with 10,000 and less than 10,000 salary
2) 4.75% of employers contribution and 1.75% of employees contribution from the salary
3) if the employees daily wage is less than Rs 70 then he is exempted from his share of contribution but the employer has to contribute his share.
Now my doubt here is that is it necessary to enroll an employee for both PF & ESI or it is enough if he is enrolled to either of the two as per his salary.
Please send in your views.
Regards
Umama
From India
Acknowledge(0)
Amend(0)
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
ESI
1) For employees with 10,000 and less than 10,000 salary
2) 4.75% of employers contribution and 1.75% of employees contribution from the salary
3) if the employees daily wage is less than Rs 70 then he is exempted from his share of contribution but the employer has to contribute his share.
Now my doubt here is that is it necessary to enroll an employee for both PF & ESI or it is enough if he is enrolled to either of the two as per his salary.
Please send in your views.
Regards
Umama
From India
Acknowledge(0)Amend(0)
Hi,
PF and ESI are two different statutory compliances. If an employee falls under both categories, i.e., basic is less than 6500 and gross is less than 10,000, then he needs to be covered under both PF as well as ESI.
Hope this clears your doubts.
Thanks & Regards,
Parikshit
From India, Delhi
Acknowledge(0)Amend(0)
PF and ESI are two different statutory compliances. If an employee falls under both categories, i.e., basic is less than 6500 and gross is less than 10,000, then he needs to be covered under both PF as well as ESI.
Hope this clears your doubts.
Thanks & Regards,
Parikshit
From India, Delhi
Acknowledge(0)Amend(0)
Hi Citehr Gurus,
Please clarify my doubts...
And one more thing I want to ask is, can the decision be left to the employee whether to get enrolled in the ESI scheme? Or is it mandatory for the employer to include the employee, whether he is interested or not?
Please send in your valuable comments.
Regards,
Umama
From India
Acknowledge(0)Amend(0)
Please clarify my doubts...
And one more thing I want to ask is, can the decision be left to the employee whether to get enrolled in the ESI scheme? Or is it mandatory for the employer to include the employee, whether he is interested or not?
Please send in your valuable comments.
Regards,
Umama
From India
Acknowledge(0)Amend(0)
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
I had PF applicable to me even when my gross salary used to be Rs.1500, Rs.5500 ...
So please clear the PF concept from someone in legal....
From India, Pune
Acknowledge(0)Amend(0)
571) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
I had PF applicable to me even when my gross salary used to be Rs.1500, Rs.5500 ...
So please clear the PF concept from someone in legal....
From India, Pune
Acknowledge(0)Amend(0)
Hello,
As per Indian law, PF and ESIC are mandatory for an employee. They are two different laws, and both must be followed.
In one of your queries, you asked whether it can be left to the employee. The answer to the above is "NO." Regardless of the employee's choice, it is the employer's prerogative to deduct the PF and ESIC. The law holds the employer at fault if employees are not covered under PF and ESIC.
Additionally, do not forget about other statutory requirements, including:
1. Minimum Wages
2. MLWF (Maharashtra Labour Welfare Fund)
3. Gratuity - though not mandatory to be deducted, it is mandatory to be paid.
If you need further clarification on this matter, feel free to ask.
Thanks and warm regards,
Vikas
From India, Mumbai
Acknowledge(0)Amend(0)
As per Indian law, PF and ESIC are mandatory for an employee. They are two different laws, and both must be followed.
In one of your queries, you asked whether it can be left to the employee. The answer to the above is "NO." Regardless of the employee's choice, it is the employer's prerogative to deduct the PF and ESIC. The law holds the employer at fault if employees are not covered under PF and ESIC.
Additionally, do not forget about other statutory requirements, including:
1. Minimum Wages
2. MLWF (Maharashtra Labour Welfare Fund)
3. Gratuity - though not mandatory to be deducted, it is mandatory to be paid.
If you need further clarification on this matter, feel free to ask.
Thanks and warm regards,
Vikas
From India, Mumbai
Acknowledge(0)Amend(0)
HI, I AM NOT CLEAR IN THE PF THE EMPLOYEE SALARY Rs6500/- THEN IF HE IS NOT INTRESTED WE CAN REMOVE IT OR NOT COULD YOU PLSE GIVE ME THE CLARIFICATION. RDS, PRAMI
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Ravishankar,
As Parikshit has said, if the basic salary is less than Rs 6500 and the gross salary is less than Rs 10,000, then it is necessary for the employee to be enrolled in both PF and ESI.
For example:
Gross - Rs 5000
Basic (35%) - Rs 1750
I hope this clarifies your doubt. :)
Regards,
Umama
From India
Acknowledge(0)Amend(0)
As Parikshit has said, if the basic salary is less than Rs 6500 and the gross salary is less than Rs 10,000, then it is necessary for the employee to be enrolled in both PF and ESI.
For example:
Gross - Rs 5000
Basic (35%) - Rs 1750
I hope this clarifies your doubt. :)
Regards,
Umama
From India
Acknowledge(0)Amend(0)Join 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.
Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf
Statutory Compliance.zip