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sakhi-garg1
Please help with a format / Declaration for the employer for not deducting PF & ESIC
From India, Lucknow
Madhu.T.K
4240

Is it a declaration by the employee required?

No employee who comes under the purview of ESI can declare that his ESI should not be deducted or he should not be covered by ESI. Obviously, if his salary exceeds Rs 21000, he will not be covered by ESi but for that, no declaration is required. Similarly, no employee who is coverable by PF can declare that his PF should not be deducted. However, if the employee joining the company is drawing more than Rs 15000 as a monthly salary, then the employer can exclude him from PF on the ground of a declaration in form 11 in which he should declare that he was not previously covered by EPF.

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From India, Kannur
sakhi-garg1
Sir, We have to furnish a certificate to one of our client (where one of our team members is working for them for accounts work, salary paid by them to us), that we do not deduct PF & ESIC. For the same sake, a certificate/declaration is required.
From India, Lucknow
Madhu.T.K
4240

That means you are a contractor and you have deployed one of your employees in the site of an employer (Principal employer) and that you need to declare to him that ESI and EPF are not applicable to that employee. Right?

There is no legal format for that declaration. You can just declare that the employee concerned is getting a salary above the threshold limit prescribed under ESI Act and EPF & MP Act and therefore, he does not cover under these Acts.

The principal employer will be okay with what is said about ESI if his salary is above Rs 21000 but he may ask further about PF deduction because PF is mandatory for employees whose salary at the time of joining is not more than Rs 15000. That too, the basic salary component. Moreover, an existing member of PF cannot be excluded from the PF if his salary exceeds Rs 15000 at the time of his joining your establishment.

From India, Kannur
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