Dear Kumarswamy,
Regarding your question on ESI, PF, and insurance, I believe you do not need to consider insurance when you have ESI as they serve a similar purpose. If all employees are unskilled, they should be covered under ESI if their gross salary is less than Rs 10,000.
For ESI and PF calculations, I recommend providing details for about 10 workers, including what you are currently paying and the amounts. Based on this information, you will receive a response with the necessary calculations, which will give you a better understanding of the process.
I hope this information is helpful to you.
Thanks & Regards,
Amith R.
From India, Bangalore
17Regarding your question on ESI, PF, and insurance, I believe you do not need to consider insurance when you have ESI as they serve a similar purpose. If all employees are unskilled, they should be covered under ESI if their gross salary is less than Rs 10,000.
For ESI and PF calculations, I recommend providing details for about 10 workers, including what you are currently paying and the amounts. Based on this information, you will receive a response with the necessary calculations, which will give you a better understanding of the process.
I hope this information is helpful to you.
Thanks & Regards,
Amith R.
From India, Bangalore
Hi Mr. Kumaraswamy,
I understand that it can be difficult for a new person who is not familiar with the rules and methods of ESIC and PF procedures. If you require a consultant with a good negotiable package, you can contact us. With over 20 years of experience in this field and an advisor who has worked in the ESIC department for 34 years, we are the leading service providers in this field.
Email: jeevanvikasconsultants@gmail.com
Email: prakash.mahadik@gmail.com
Prakash Mahadik - 9223202860
Office: 022-64509188
Let's have a meeting at my office, or I can come to your place. Your confusions will be resolved.
Thank you
From India, Pune
I understand that it can be difficult for a new person who is not familiar with the rules and methods of ESIC and PF procedures. If you require a consultant with a good negotiable package, you can contact us. With over 20 years of experience in this field and an advisor who has worked in the ESIC department for 34 years, we are the leading service providers in this field.
Email: jeevanvikasconsultants@gmail.com
Email: prakash.mahadik@gmail.com
Prakash Mahadik - 9223202860
Office: 022-64509188
Let's have a meeting at my office, or I can come to your place. Your confusions will be resolved.
Thank you
From India, Pune
Dear All,
To many opinions, a mixture of right and wrong seems to be creating confusions.
PF salary means all emoluments earned by an employee, excluding HRA, OT, bonus, commissions, and similar allowances. Even leave encashment attracts PF deduction. PF is deducted on regular salary, which is also called PF salary. Where basic salary is low, supposing 200 and DA is 1000, the PF salary is 1200, and the employee's and employer's contribution to PF at 12% is 144 each. Out of the employer's contribution, 8.33% of the salary goes to the pension fund and the rest to PF. For ESI, the same rule is followed; only the contribution rates are different, and employees getting PF salary over 10000 are not covered by ESI.
There is no such rule that the basic salary will always be higher than DA. There are many MNCs and other commercial houses whose employees are getting DA as fixed by various Chambers of Commerce, which are 500% or more higher than basic. This means if an employee's basic is 100, and he gets 500 as DA, PF is deducted of 600. This is agreed upon by both the management and trade unions and local labor commissioners.
Kalyan Mitra
From India, Calcutta
To many opinions, a mixture of right and wrong seems to be creating confusions.
PF salary means all emoluments earned by an employee, excluding HRA, OT, bonus, commissions, and similar allowances. Even leave encashment attracts PF deduction. PF is deducted on regular salary, which is also called PF salary. Where basic salary is low, supposing 200 and DA is 1000, the PF salary is 1200, and the employee's and employer's contribution to PF at 12% is 144 each. Out of the employer's contribution, 8.33% of the salary goes to the pension fund and the rest to PF. For ESI, the same rule is followed; only the contribution rates are different, and employees getting PF salary over 10000 are not covered by ESI.
There is no such rule that the basic salary will always be higher than DA. There are many MNCs and other commercial houses whose employees are getting DA as fixed by various Chambers of Commerce, which are 500% or more higher than basic. This means if an employee's basic is 100, and he gets 500 as DA, PF is deducted of 600. This is agreed upon by both the management and trade unions and local labor commissioners.
Kalyan Mitra
From India, Calcutta
Dear All,
This has been explained very well. Please visit the labor department in your city and collect the minimum wages pertaining to your industry and sphere of work. You need to maintain a number of registers/formats. Excel sheets have already been suggested and can be implemented. Initially, it would be trial and error, but do not give up.
ESI is compulsory, but workers' compensation helps. Please have an accident policy and workers' compensation in place. Both are not very expensive provided your management agrees to it.
All the best.
Dwipna
From India, Calcutta
This has been explained very well. Please visit the labor department in your city and collect the minimum wages pertaining to your industry and sphere of work. You need to maintain a number of registers/formats. Excel sheets have already been suggested and can be implemented. Initially, it would be trial and error, but do not give up.
ESI is compulsory, but workers' compensation helps. Please have an accident policy and workers' compensation in place. Both are not very expensive provided your management agrees to it.
All the best.
Dwipna
From India, Calcutta
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