Dear Sir,
Our company is a start-up company. We want to provide our employees with PF and ESI benefits. Could you please provide me with the details regarding it? Are there any criteria for a company to enroll in PF?
Thanks & Regards
From India, Hyderabad
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1Our company is a start-up company. We want to provide our employees with PF and ESI benefits. Could you please provide me with the details regarding it? Are there any criteria for a company to enroll in PF?
Thanks & Regards
From India, Hyderabad
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i read some where that the company should be of min 3 yr. then only it has the eligibility to go for PF is it true
From India, Hyderabad
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From India, Hyderabad
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Dear team,
I am now associated with a business group. They have 3 manufacturing companies (one started in the year 2002 and the other two in 2008) - all three are partnership companies (family partners), one trading company (proprietary firm), and one logistics company (partnership firm). However, all these companies are not covered under labor statutes - viz. PF, ESI, Gratuity, etc. Now we want to get all companies covered under these statutes and submit a suitable proposal to the ownership management. But the questions before us are:
1. Coverage of all statutes, by all means, shall be from a prospective effect. If so, what about the case of old employees who joined in the starting stage of the companies, up to the date of coverage.
2. Whether to apply the main code for the Group and apply sub-codes to individual companies? OR should we apply individual codes to individual companies.
As per the accounting standards, all group companies are different profit/cost centers and have individual balance sheets and P&L accounts.
3. What are the other points we have to take care of regarding this?
Experienced members working in this area are invited to post their expert views on this matter.
Thanks. Regards,
R K Nair
From India, Aizawl
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I am now associated with a business group. They have 3 manufacturing companies (one started in the year 2002 and the other two in 2008) - all three are partnership companies (family partners), one trading company (proprietary firm), and one logistics company (partnership firm). However, all these companies are not covered under labor statutes - viz. PF, ESI, Gratuity, etc. Now we want to get all companies covered under these statutes and submit a suitable proposal to the ownership management. But the questions before us are:
1. Coverage of all statutes, by all means, shall be from a prospective effect. If so, what about the case of old employees who joined in the starting stage of the companies, up to the date of coverage.
2. Whether to apply the main code for the Group and apply sub-codes to individual companies? OR should we apply individual codes to individual companies.
As per the accounting standards, all group companies are different profit/cost centers and have individual balance sheets and P&L accounts.
3. What are the other points we have to take care of regarding this?
Experienced members working in this area are invited to post their expert views on this matter.
Thanks. Regards,
R K Nair
From India, Aizawl
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Dear all, I refer to my earlier posting regarding coverage of labour sttatutes, viz.PF/ESI etc. Cite HR team members are requested to express their views. Thanks R K Nair
From India, Aizawl
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From India, Aizawl
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Greetings!
PF is a mandatory saving for all employees who have a basic salary of less than 6500/- per month. Also, PF is a mandate for any organization that has more than 25 employees on the roll. Similar is ESIC. In any organization that has more than 25 employees on the roll, an employee with a gross salary of 15000 per month or less is eligible for ESIC. Both things are deducted from the employee's salary: PF at 12% of the basic and ESIC at 1.96% of the gross (not 100% sure). Hope it helps. Would request you to please ask the MD/owner to get complete details from their Chartered Accountant and ensure the same. All the best!
Regards
From India, Delhi
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PF is a mandatory saving for all employees who have a basic salary of less than 6500/- per month. Also, PF is a mandate for any organization that has more than 25 employees on the roll. Similar is ESIC. In any organization that has more than 25 employees on the roll, an employee with a gross salary of 15000 per month or less is eligible for ESIC. Both things are deducted from the employee's salary: PF at 12% of the basic and ESIC at 1.96% of the gross (not 100% sure). Hope it helps. Would request you to please ask the MD/owner to get complete details from their Chartered Accountant and ensure the same. All the best!
Regards
From India, Delhi
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We are M/s 2AB Consultants Hyderabad based labour consultancy if anybody looking any statutory compliance services please contact Satyanarayana 9866911153
From India, Hyderabad
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From India, Hyderabad
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Dear Sir(s),
For the coverage of any factory or establishment under the EPF & Misc. Provisions Act or ESI Act, 1948, there is no waiting period or qualifying period. The unit is covered right from the very day on which the minimum number of persons, as required under the Acts, are employed.
One member in the above remarks has noted, "ESIC: 1.96% of gross (not 100% sure)." This information is not correct. In my opinion, we should consult the relevant Labour Law Acts and rules/regulations framed thereunder before expressing any opinion. The relevant Acts or rules/regulations are readily available on the websites of the said departments.
If we express our opinion based on the provisions of the relevant Acts and rules/regulations, the readers can benefit properly. Otherwise, wrong information may lead to confusion only and sometimes may result in actions or omissions that are not required by the relevant law.
Thank you.
From India, Noida
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For the coverage of any factory or establishment under the EPF & Misc. Provisions Act or ESI Act, 1948, there is no waiting period or qualifying period. The unit is covered right from the very day on which the minimum number of persons, as required under the Acts, are employed.
One member in the above remarks has noted, "ESIC: 1.96% of gross (not 100% sure)." This information is not correct. In my opinion, we should consult the relevant Labour Law Acts and rules/regulations framed thereunder before expressing any opinion. The relevant Acts or rules/regulations are readily available on the websites of the said departments.
If we express our opinion based on the provisions of the relevant Acts and rules/regulations, the readers can benefit properly. Otherwise, wrong information may lead to confusion only and sometimes may result in actions or omissions that are not required by the relevant law.
Thank you.
From India, Noida
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[P]PF Contribution [/P]
12% Employer (3.67% = PF and 8.33% = Pension) + 12% Employee's Contribution + 1.1% PF admin charge + 0.5% EDLI + 0.01% EDLI admin charge = 25.61%
[P]ESI Contribution[/P]
1.75% Employee's Share + 4.75% Employer's Share = 6.5%
Thank you.
From India, Ahmadabad
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12% Employer (3.67% = PF and 8.33% = Pension) + 12% Employee's Contribution + 1.1% PF admin charge + 0.5% EDLI + 0.01% EDLI admin charge = 25.61%
[P]ESI Contribution[/P]
1.75% Employee's Share + 4.75% Employer's Share = 6.5%
Thank you.
From India, Ahmadabad
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PF & ESI.zip
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