Dear All,
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
ESI
1) For employees with 10,000 and less than 10,000 salary
2) 4.75% of employers contribution and 1.75% of employees contribution from the salary
3) if the employees daily wage is less than Rs 70 then he is exempted from his share of contribution but the employer has to contribute his share.
Now my doubt here is that is it necessary to enroll an employee for both PF & ESI or it is enough if he is enrolled to either of the two as per his salary.
Please send in your views.
Regards
Umama
From India
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
ESI
1) For employees with 10,000 and less than 10,000 salary
2) 4.75% of employers contribution and 1.75% of employees contribution from the salary
3) if the employees daily wage is less than Rs 70 then he is exempted from his share of contribution but the employer has to contribute his share.
Now my doubt here is that is it necessary to enroll an employee for both PF & ESI or it is enough if he is enrolled to either of the two as per his salary.
Please send in your views.
Regards
Umama
From India
Hi,
PF & ESI are two different statutory compliances. If an employee fall under both the categories, i.e, basic is less than 6500 and gross is less than 10,000, than he need to covered both under Pf as well as ESI.
Hope this might clear your doubts.
Thanks & Regards
Parikshit.
From India, Delhi
PF & ESI are two different statutory compliances. If an employee fall under both the categories, i.e, basic is less than 6500 and gross is less than 10,000, than he need to covered both under Pf as well as ESI.
Hope this might clear your doubts.
Thanks & Regards
Parikshit.
From India, Delhi
Hi Citehr Gurus,
Please clarify my doubts..
Conti......
And one more thing what i want to ask is that can the decision be left to employee whether to get enrolled to ESI scheme.
Or is it mandatory for the employer to include the employee whether he is interested or not.
Please send in your valuable comments...
Regards,
Umama
From India
Please clarify my doubts..
Conti......
And one more thing what i want to ask is that can the decision be left to employee whether to get enrolled to ESI scheme.
Or is it mandatory for the employer to include the employee whether he is interested or not.
Please send in your valuable comments...
Regards,
Umama
From India
PF
1) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
I had PF applicable to me even when my gross salary used to be Rs.1500, Rs.5500 ...
So please clear the PF concept from someone in legal....
From India, Pune
541) an employee has to be enrolled to the PF account if his salary is 10,001 & above
2) If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme
3) Rate of contribution 12% of employers share & 12% of employees share.
4) out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is credited to the Pension Fund
I had PF applicable to me even when my gross salary used to be Rs.1500, Rs.5500 ...
So please clear the PF concept from someone in legal....
From India, Pune
Hello,
As per the Indian Law the PF and ESIC Is Mandatory to a employee.
They are 2 different laws and they both have to be followed.
In one of your queries you have asked whether it can be left on the employee. The answer to teh above is "NO".
Irrespective to the choice of teh employee it is the EMPLOYERS PREROGATIVE that he deduct the PF and ESIC.
Law holds the Employer at fault incase the employees are not covered under PF and ESIC.
By the way on this you should not forget the other statutory also which are:-
1. Minimum Wages
2. MLWF (Maharashtra Labour Welfare Fund)
3. Gratuity - THOUGH NOT MNDATORY TO BE DEDUCTED BUT ITS MANDATORY TO BE PAID.
Any inputs you require further in this regard you are most welcome to ask.
Thanks and warm Regards,
Vikas
From India, Mumbai
As per the Indian Law the PF and ESIC Is Mandatory to a employee.
They are 2 different laws and they both have to be followed.
In one of your queries you have asked whether it can be left on the employee. The answer to teh above is "NO".
Irrespective to the choice of teh employee it is the EMPLOYERS PREROGATIVE that he deduct the PF and ESIC.
Law holds the Employer at fault incase the employees are not covered under PF and ESIC.
By the way on this you should not forget the other statutory also which are:-
1. Minimum Wages
2. MLWF (Maharashtra Labour Welfare Fund)
3. Gratuity - THOUGH NOT MNDATORY TO BE DEDUCTED BUT ITS MANDATORY TO BE PAID.
Any inputs you require further in this regard you are most welcome to ask.
Thanks and warm Regards,
Vikas
From India, Mumbai
HI, I AM NOT CLEAR IN THE PF THE EMPLOYEE SALARY Rs6500/- THEN IF HE IS NOT INTRESTED WE CAN REMOVE IT OR NOT COULD YOU PLSE GIVE ME THE CLARIFICATION. RDS, PRAMI
From India, Hyderabad
From India, Hyderabad
Dear Ravishankar,
As parikshit has said,, if basic is less than Rs 6500 and gross is less than 10,000, then it is necessary that the employee need to be enrolled both under PF and ESI
For eg:
Gross - Rs 5000
___________________
Basic (35%) - 1750
--------------------------
Have clarified your doubt. :)
Regards,
Umama
From India
As parikshit has said,, if basic is less than Rs 6500 and gross is less than 10,000, then it is necessary that the employee need to be enrolled both under PF and ESI
For eg:
Gross - Rs 5000
___________________
Basic (35%) - 1750
--------------------------
Have clarified your doubt. :)
Regards,
Umama
From India
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls