I am working in a media channel where, for contract employees, ESI and PF deductions are not made. These employees have been contracted here for 3 months, and based on their performance, they may be offered permanent roles. Currently, we are not including contract employees in the payroll section.
Question on ESI and PF Deductions for Contract Employees
Is it necessary for us to deduct ESI and PF from the salaries of employees on contract for 3 months? Please guide me in this aspect.
Thank you.
Regards
From India, Bangalore
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1Question on ESI and PF Deductions for Contract Employees
Is it necessary for us to deduct ESI and PF from the salaries of employees on contract for 3 months? Please guide me in this aspect.
Thank you.
Regards
From India, Bangalore
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Dear Surisethe Kashinath, in response to your query, you can find the information in previous discussions among members. However, I will provide it here for your convenience.
PF and ESI Applicability
PF and ESI are applicable even if you engage an employee for just a single day. This includes direct employees, contract employees, contractual employees, and contractors' employees, regardless of their status as permanent, temporary, or casual.
For PF, there are certain conditions under which you can exclude some employees. However, for ESI, you are required to extend coverage to all eligible employees.
Your company is liable if you fail to comply with the above requirements.
I hope this clarifies the matter for you.
Best regards
From India, Mumbai
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PF and ESI Applicability
PF and ESI are applicable even if you engage an employee for just a single day. This includes direct employees, contract employees, contractual employees, and contractors' employees, regardless of their status as permanent, temporary, or casual.
For PF, there are certain conditions under which you can exclude some employees. However, for ESI, you are required to extend coverage to all eligible employees.
Your company is liable if you fail to comply with the above requirements.
I hope this clarifies the matter for you.
Best regards
From India, Mumbai
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PF for foreign employees 1.10.08.pdf
PF & ESI.zip