Dear team,
We have recently started an IT company (partnership) and have 8 employees excluding 2 partners (salaried). All the employees are in the salary band of Rs 6000-12000 PM. Please let me know what should be the best salary structure for employees and what labor laws will be applicable. Do I need to deduct ESI, PF, etc.?
From India, Pune
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We have recently started an IT company (partnership) and have 8 employees excluding 2 partners (salaried). All the employees are in the salary band of Rs 6000-12000 PM. Please let me know what should be the best salary structure for employees and what labor laws will be applicable. Do I need to deduct ESI, PF, etc.?
From India, Pune
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Hi,
APPLICABILITY OF THE ESI ACT
The ESI Act, (1948) applies to the following categories of factories and establishments in the implemented areas:-
............Non-seasonal factories using power and employing ten(10) or more persons
............Non-seasonal and non power using factories and establishments employing twenty (20) or more persons.
The “ appropriate Government ” State or Central is empowered to extend the provisions of the ESI Act to various classes of establishments, industrial, commercial, agricultural or otherwise in nature. Under these enabling provisions most of the State Govts have extended the ESI Act to certain specific classes of establishments, such as, shops, hotels, restaurants, cinemas, preview theatres, motors transport undertakings and newspaper and advertising establishments etc., employing 20 or more persons.
PF Coverage
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.
From India, Delhi
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18APPLICABILITY OF THE ESI ACT
The ESI Act, (1948) applies to the following categories of factories and establishments in the implemented areas:-
............Non-seasonal factories using power and employing ten(10) or more persons
............Non-seasonal and non power using factories and establishments employing twenty (20) or more persons.
The “ appropriate Government ” State or Central is empowered to extend the provisions of the ESI Act to various classes of establishments, industrial, commercial, agricultural or otherwise in nature. Under these enabling provisions most of the State Govts have extended the ESI Act to certain specific classes of establishments, such as, shops, hotels, restaurants, cinemas, preview theatres, motors transport undertakings and newspaper and advertising establishments etc., employing 20 or more persons.
PF Coverage
Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act statutorily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.
From India, Delhi
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Thanks for the info, Malay!!
Somewhere, I have heard that PF deduction is applicable for more than 10 employees. Maybe that is outdated information. Please let me know what should be the best salary structure for employees in the salary band of Rs 6000-12000 per month. Do we need to deduct professional tax also?
From India, Pune
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Somewhere, I have heard that PF deduction is applicable for more than 10 employees. Maybe that is outdated information. Please let me know what should be the best salary structure for employees in the salary band of Rs 6000-12000 per month. Do we need to deduct professional tax also?
From India, Pune
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PF Coverage Salary Component under New PF Rule.pdf
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls