Hi,
We have a team of 28, working in It domain wherein 19 are permanent employees and 9 are on probation/training. All employees have a basic salary of more than 6500/- and gross of more than 15000/-. My question is whether it is absolutely must to apply for PF/ESI registration in such a situation and is company legally liable for deductiong PF/ESI?
Also, what are the penalties/fine in case company does not register/deduct PF/ESI?
Please let me know if you need more information. Assistance and guidance will be highly appreciated.
From India, Delhi
We have a team of 28, working in It domain wherein 19 are permanent employees and 9 are on probation/training. All employees have a basic salary of more than 6500/- and gross of more than 15000/-. My question is whether it is absolutely must to apply for PF/ESI registration in such a situation and is company legally liable for deductiong PF/ESI?
Also, what are the penalties/fine in case company does not register/deduct PF/ESI?
Please let me know if you need more information. Assistance and guidance will be highly appreciated.
From India, Delhi
Dear Yogesh,
For ESI & PF registration minimum 20 staff should be there and you have to register in these.
1) ESI if employees gross salary is more then 15000 then go for medical benefit.
2) PF: if staff basic salary is more then 6500 you can deduct PF amount only on 6500, (means if XYZ basic salary is 6500 presently deduct PF on 6500 as Schelling amount)
For more information visit ESI & PF sites
ESI: :: Welcome to ESIC ::
PF : EPFO
From India, Madras
18For ESI & PF registration minimum 20 staff should be there and you have to register in these.
1) ESI if employees gross salary is more then 15000 then go for medical benefit.
2) PF: if staff basic salary is more then 6500 you can deduct PF amount only on 6500, (means if XYZ basic salary is 6500 presently deduct PF on 6500 as Schelling amount)
For more information visit ESI & PF sites
ESI: :: Welcome to ESIC ::
PF : EPFO
From India, Madras
Even though the gross salaries of all the employees exceed RS.6500/p.m and Rs.15000/p.m, if your are covered by ESI & EPF Acts, you need to register under the relevant Acts.
B.Saikumar
HR & Labour Law advsior
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advsior
Mumbai
From India, Mumbai
Dear Yogesh eventhough, they are crossing the limit, there may be some employees may get lesser basic to Rs.6500/ for those employees your organisation must be covered under the EPF
From India, Madras
From India, Madras
Hi Subba,
None of the employee has basic salary of less than 6500/- other than peon whose payout happens in cash. Thus it's quite confusing as i'm getting different feedback/opinion from different PF/ESI consultants. Request all you expert to provide your best thoughts on same.
Also, please share what can be the implication if we do not register for PF/ESI. What are the penalties etc.?
Regards
Yogesh
From India, Delhi
None of the employee has basic salary of less than 6500/- other than peon whose payout happens in cash. Thus it's quite confusing as i'm getting different feedback/opinion from different PF/ESI consultants. Request all you expert to provide your best thoughts on same.
Also, please share what can be the implication if we do not register for PF/ESI. What are the penalties etc.?
Regards
Yogesh
From India, Delhi
Dear Sir We have start newly in milk company at Coimbatore dist, Tamilnadu now our staff strength is 12 let us know now start with esi registration or after 20 staff only register?
From India, Bangalore
From India, Bangalore
Dear Yogesh,
For peon catagories you have to cover under epf.& esi.If not so, enforcement officer/social security officer(esi inspector) may accidently come for inspection.That time you have to face the problems.That time your liabilities will be high.
Regards
v.subbarao
From India, Madras
For peon catagories you have to cover under epf.& esi.If not so, enforcement officer/social security officer(esi inspector) may accidently come for inspection.That time you have to face the problems.That time your liabilities will be high.
Regards
v.subbarao
From India, Madras
Yogesh ji,
You have total 28 employees on your roll and all are drawing basic more than Rs. 6500/-pm and gross more than Rs. 15000/- pm.
In this case PF Act is attracted to you and ESI Act does not.
To attract PF, computation of 20 employees counts total heads irrespective of salary. And to attract ESI, only such 10 / 20 employees heads are count whose gross is up to Rs. 15000/-pm.
Even all the 28 employees opt not to contributes to PF and treated as "excluded employees" with in the meaning of the Act, you are liable to obtain PF code and make remittence of total Rs. 7/- per month. Your liability start from the month you reached 20 head counts.
The threshold limit of ESI coverage of 20 employees is reduced to 10 in almost state. Maharashtra it is 20 till date.
Your peons and other indirect employees if you have any, is a gray area for you.
From India, Mumbai
You have total 28 employees on your roll and all are drawing basic more than Rs. 6500/-pm and gross more than Rs. 15000/- pm.
In this case PF Act is attracted to you and ESI Act does not.
To attract PF, computation of 20 employees counts total heads irrespective of salary. And to attract ESI, only such 10 / 20 employees heads are count whose gross is up to Rs. 15000/-pm.
Even all the 28 employees opt not to contributes to PF and treated as "excluded employees" with in the meaning of the Act, you are liable to obtain PF code and make remittence of total Rs. 7/- per month. Your liability start from the month you reached 20 head counts.
The threshold limit of ESI coverage of 20 employees is reduced to 10 in almost state. Maharashtra it is 20 till date.
Your peons and other indirect employees if you have any, is a gray area for you.
From India, Mumbai
Dear Administrators, My request to remove the anonymous from my above posting. it was done by mistake. Accidentally the botton got pressed of my iPhone.
From India, Mumbai
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls