Hi,
We operated at 25+ employees and had taken PF & ESIC registration.
We had scaleded down operations and now have 2 of our old employees, now as direct contract workers.
We have taken 3 new contract workers, now a total of 5 direct contract workers.
Are we liable to pay PF? All have contract fee above 6500
Are we liable to pay ESIC? 4 have contract fee below 15k and 1 above 15k
Thanks.
Regards,
Nish
From India, Mumbai
We operated at 25+ employees and had taken PF & ESIC registration.
We had scaleded down operations and now have 2 of our old employees, now as direct contract workers.
We have taken 3 new contract workers, now a total of 5 direct contract workers.
Are we liable to pay PF? All have contract fee above 6500
Are we liable to pay ESIC? 4 have contract fee below 15k and 1 above 15k
Thanks.
Regards,
Nish
From India, Mumbai
Dear member,
Please intimate what is meant by words "direct contract worker" and "contract fee"as you have used in the remarks as above. Your establishment will continue to be covered under ESI Act, 1948 irrespective of the fact that the number of employees have reduced. Kindly see Section 1(6) of said Act. Therefore, you are liable to continue compliance under said Act.
From India, Noida
923Please intimate what is meant by words "direct contract worker" and "contract fee"as you have used in the remarks as above. Your establishment will continue to be covered under ESI Act, 1948 irrespective of the fact that the number of employees have reduced. Kindly see Section 1(6) of said Act. Therefore, you are liable to continue compliance under said Act.
From India, Noida
By virtue of Sec 1(5) of EPF Act you will continue ti be covered under EPF.You need not cover employees with salary above Rs15000/-under ESI subject to conditions of contribution period.If the employees were earlier PF members you have comply PF in respect of them even if their salary is above Rs 6500/-But your liability will be only 12% of 6500/-
Varghese Mathew
From India, Thiruvananthapuram
Varghese Mathew
From India, Thiruvananthapuram
Dear Sir,
In my opinion, since you have obtained the Code numbers, as such , you have to deposit PF contributions in respect of whatever number of employees are left or engaged or to deposit minimum administrative charges till final closure of the estt .As regards pay ceiling ,you have to contribute on the statutory rates as per provisions. For contribution for the employee on increasing the pay limit .you can restrict upto statutory limit but can not deny the benefits. However in case of fresh joining of new employee, if his pay is more than the statutory limit and he was not a member of EPF earlier, he can be treated as Excluded Employee.
AK Chandok
RPFC ( Retd. )
www.akchandok.com
From India, Chandigarh
In my opinion, since you have obtained the Code numbers, as such , you have to deposit PF contributions in respect of whatever number of employees are left or engaged or to deposit minimum administrative charges till final closure of the estt .As regards pay ceiling ,you have to contribute on the statutory rates as per provisions. For contribution for the employee on increasing the pay limit .you can restrict upto statutory limit but can not deny the benefits. However in case of fresh joining of new employee, if his pay is more than the statutory limit and he was not a member of EPF earlier, he can be treated as Excluded Employee.
AK Chandok
RPFC ( Retd. )
www.akchandok.com
From India, Chandigarh
After coverage of contract workers in ESI and PF., you have to continue their membership even the strength falls below 20 employees ( 4 or 5 members also).
If you want, you can shift your responsibility of contract workers coverage in ESI and PF on par with the company workers through the company by having negotiation with the management.
From India, Hyderabad
If you want, you can shift your responsibility of contract workers coverage in ESI and PF on par with the company workers through the company by having negotiation with the management.
From India, Hyderabad
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