I am working for a contractor in a steel plant in Karnataka. I am an engineer, and I have to carry out all labor activities. I don't know the PF and ESIC rules. I want to know how much we have to deduct from the laborers.
Thank you.
From India, Bangalore
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Thank you.
From India, Bangalore
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Dear,
If your establishment is covered under the provisions of the ESI Act, 1948, then you are required to deduct 1.75% from the salary of the employees/workers upon their gross salary. Apart from this, you are further required to pay 4.75% towards your own share. In total, it comes out to 6.50% towards contributions for all those workers/employees receiving gross wages up to Rs. 15,000/- per month.
Regarding the Provident Fund, if your establishment is covered under the provisions of section 1(3), 1(4), and 2A of the EPF and MP Act, 1952, you have to deduct a 12% contribution on the Basic Salary of employees earning up to Rs. 6,500/- per month. Employees earning more than Rs. 6,500/- as basic salary will be considered exempted employees if their Basic salary was more than Rs. 6,500/- per month from the very first day of their appointment or on the day of the Act's applicability. In addition to the deduction made from the employees, you are further required to pay 12% towards your own share and 1.61% towards administration charges.
Nowadays, the contribution amount is required to be paid online through creating an ECR file online and then uploading that file on the EPFO e-portal.
Regards,
R B Yadav
From India, Gurugram
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119If your establishment is covered under the provisions of the ESI Act, 1948, then you are required to deduct 1.75% from the salary of the employees/workers upon their gross salary. Apart from this, you are further required to pay 4.75% towards your own share. In total, it comes out to 6.50% towards contributions for all those workers/employees receiving gross wages up to Rs. 15,000/- per month.
Regarding the Provident Fund, if your establishment is covered under the provisions of section 1(3), 1(4), and 2A of the EPF and MP Act, 1952, you have to deduct a 12% contribution on the Basic Salary of employees earning up to Rs. 6,500/- per month. Employees earning more than Rs. 6,500/- as basic salary will be considered exempted employees if their Basic salary was more than Rs. 6,500/- per month from the very first day of their appointment or on the day of the Act's applicability. In addition to the deduction made from the employees, you are further required to pay 12% towards your own share and 1.61% towards administration charges.
Nowadays, the contribution amount is required to be paid online through creating an ECR file online and then uploading that file on the EPFO e-portal.
Regards,
R B Yadav
From India, Gurugram
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PF ESIC.xls
PF Advance rule.doc