Hi Seniors,
I have a small doubt. We are starting a new food factory, and more than 23 employees are working. Among the 23 employees, 15 employees earn more than 15,000 in salary. In this situation, should we compulsorily contribute to ESI and PF? Please advise. We have decided to deduct only ESI; is this correct or not? Please advise.
From India, Tiruppur
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I have a small doubt. We are starting a new food factory, and more than 23 employees are working. Among the 23 employees, 15 employees earn more than 15,000 in salary. In this situation, should we compulsorily contribute to ESI and PF? Please advise. We have decided to deduct only ESI; is this correct or not? Please advise.
From India, Tiruppur
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Sir, you are required to obain Code Number under ESI Act, 1948 and also registration under EPF & MPs Act, 1952.
From India, Noida
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944From India, Noida
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Yes, you have to get registered under the Employees' State Insurance Act, 1948, and the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act"). You have 23 employees. Those who are earning more than Rs. 15,000 as gross salary per month should be covered under any other compensation policy (The Workmen's Compensation Act 1923, now changed to the Employee Compensation Act 2010, and The Fatal Accidents Act, 1855) apart from ESIC. Please take the signatures of your employees on Form-2 and Form-11 under the EPF Act.
Regards, Mohan Kumar
From India, Kolkata
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Regards, Mohan Kumar
From India, Kolkata
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PF Registration Requirements
1. You need registration under PF.
2. For all employees with a basic salary plus DA less than ₹15,000 (not gross salary), you need to deduct and pay to the PF department along with your contribution. There is no option of not paying.
3. For all employees who had a basic salary plus DA over ₹15,000 on the day the coverage became due, or on the date of joining, whichever is earlier, you can exclude them if they fill out Form 11.
ESIC Registration Requirements
4. You need registration under ESIC.
5. You have to cover all employees under ESIC whose gross salary is not more than ₹15,000.
6. For other employees, take workman compensation cover as explained by Mr. Ghosh.
Regards
From India, Mumbai
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1. You need registration under PF.
2. For all employees with a basic salary plus DA less than ₹15,000 (not gross salary), you need to deduct and pay to the PF department along with your contribution. There is no option of not paying.
3. For all employees who had a basic salary plus DA over ₹15,000 on the day the coverage became due, or on the date of joining, whichever is earlier, you can exclude them if they fill out Form 11.
ESIC Registration Requirements
4. You need registration under ESIC.
5. You have to cover all employees under ESIC whose gross salary is not more than ₹15,000.
6. For other employees, take workman compensation cover as explained by Mr. Ghosh.
Regards
From India, Mumbai
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You have to take registration code for both ESIC and PF because total strenth is 23. It doesn’t matter how much is getting Basic + DA more then 15000 or less then 15000
From United States,
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From United States,
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Both PF and ESI are compulsory in your case. Any delay in paying PF or avoiding would invite penalty also and your company would be forced to pay PF to people who leave your company also.
From India, Madras
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From India, Madras
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Can any one tell me . if an employee is suffering accident outside the company premises can . he is liable for he ESIC compensation ?
From India, Kolhapur
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From India, Kolhapur
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EPF and ESI Contribution Clarification
We want to calculate the EPF alone and not include the ESI amount. Those who are earning more than 15,000 will not be considered for ESI. Our company is situated in Chennai.
Regards, Sathyanarayanan T
From India, Chennai
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We want to calculate the EPF alone and not include the ESI amount. Those who are earning more than 15,000 will not be considered for ESI. Our company is situated in Chennai.
Regards, Sathyanarayanan T
From India, Chennai
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As already mentioned, our comment has been sent to you. The ESI should be calculated within ₹15,000/- and not more than ₹15,001/-. For EPF, there should be a minimum of ₹15,000/-, and the maximum should be other than that, etc.
Kind regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
Tel: [Phone Number Removed For Privacy Reasons] | Mob: [Phone Number Removed For Privacy Reasons]
Chennai | Bangalore | Hubli | Hyderabad | Kuala Lumpur
New No.81, Old No.61 Peters Road, Royapettah, Chennai - 600 014. INDIA
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From India, Chennai
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Kind regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
Tel: [Phone Number Removed For Privacy Reasons] | Mob: [Phone Number Removed For Privacy Reasons]
Chennai | Bangalore | Hubli | Hyderabad | Kuala Lumpur
New No.81, Old No.61 Peters Road, Royapettah, Chennai - 600 014. INDIA
Please don't print this e-mail unless you really need to.
From India, Chennai
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PF & ESI.zip
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Exp.and esi pf mis format.xls