I seek advice for compliance related query since I do not have any expertise in this field. My brother along with 30 team members(excluding team leader) work as Chat Process Executives, salary ranging from 18,000-22,000 per month, rotational shift per week at XXX, XXX Telecom, Moti Nagar branch, New Delhi.
They receive salary on time but no PF and ESI is deducted from the same.
Does this raise any compliance issue for employer? The HR team has notified at time of joining that since they are working in such BPO as chat executives, the company does not payout PF or ESI to new joinees, it "applies only to senior management". There are other chat executive batches that are also not paid out PF/ESI.
From India, Delhi
23They receive salary on time but no PF and ESI is deducted from the same.
Does this raise any compliance issue for employer? The HR team has notified at time of joining that since they are working in such BPO as chat executives, the company does not payout PF or ESI to new joinees, it "applies only to senior management". There are other chat executive batches that are also not paid out PF/ESI.
From India, Delhi
Hello there,
If your brother company providing the salary without any third party; in that case the company has to pay the ESI and PF, for that the company has to registered for EPFO and ESIC to get the registration codes.
As of now if the company has minimum employees of 20 they have to get ESI and PF benefits, but if the company has a contract employees, the contractor has to take care of the process.
The EPF and ESI slab for certain employer should be 21,000.
My only advise for your brother is tell him to speak to the company HR or a consultant on this.
From India, Hyderabad
If your brother company providing the salary without any third party; in that case the company has to pay the ESI and PF, for that the company has to registered for EPFO and ESIC to get the registration codes.
As of now if the company has minimum employees of 20 they have to get ESI and PF benefits, but if the company has a contract employees, the contractor has to take care of the process.
The EPF and ESI slab for certain employer should be 21,000.
My only advise for your brother is tell him to speak to the company HR or a consultant on this.
From India, Hyderabad
Dear Akash,
This may give clarity to you.
For PF - Any person earning a basic of Rs. 15k or more can be exempted from being a PF subscriber, if he was not a subscriber of PF before. However if the person earns a basic of Rs. 15k or was a subscriber of EPFO before; then PF contributions are mandatory.
For ESI - Any employee earning a gross of 21,000 or below is eligible for ESI deduction and benefits.
If the bpo is not functioning as per the aforesaid rule, you can speak to them and seek reasons why.
Regards,
Rahul Chhabra
From India, Delhi
This may give clarity to you.
For PF - Any person earning a basic of Rs. 15k or more can be exempted from being a PF subscriber, if he was not a subscriber of PF before. However if the person earns a basic of Rs. 15k or was a subscriber of EPFO before; then PF contributions are mandatory.
For ESI - Any employee earning a gross of 21,000 or below is eligible for ESI deduction and benefits.
If the bpo is not functioning as per the aforesaid rule, you can speak to them and seek reasons why.
Regards,
Rahul Chhabra
From India, Delhi
Hi all,
Thanks for sharing your feedback. Initially, at the time of joining, my brother did argue with the HR regarding PF contribution must be paid as per law but they were too smart to convince him that they do not follow such process in their branch. There are around 35 chat executives handling online food delivery complaints that are not members of PF and ESI.
I am not sure how they have this policy running legally.
Thanks and Regards,
Akash Sharma
From India, Delhi
Thanks for sharing your feedback. Initially, at the time of joining, my brother did argue with the HR regarding PF contribution must be paid as per law but they were too smart to convince him that they do not follow such process in their branch. There are around 35 chat executives handling online food delivery complaints that are not members of PF and ESI.
I am not sure how they have this policy running legally.
Thanks and Regards,
Akash Sharma
From India, Delhi
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