Hi Rohit,
EPF can be deducted on Basic salary+DA+Food Allowance+any other special allowance which is not defied i.e upto Rs. 6500, and esic deduction will be on Rs.10,000/- gross salary and professional tax can,t be avoided,
from,
sumit
From India, Ghaziabad
252EPF can be deducted on Basic salary+DA+Food Allowance+any other special allowance which is not defied i.e upto Rs. 6500, and esic deduction will be on Rs.10,000/- gross salary and professional tax can,t be avoided,
from,
sumit
From India, Ghaziabad
Am into Pvt Ltd company. I want to know that is any space available in any or all of them PF, ESIT, PT law that company dosent deduct from employe and pays them into their salary. Can a company do this.
Pls reply immediately its urgent
From India, Mumbai
Pls reply immediately its urgent
From India, Mumbai
Am into Pvt Ltd company. I want to know that is any space available in any or all of them PF, ESIT, PT .DA,ALSO OTHERS SALARY ADMINISTRATION IN law that company dosent deduct from employe and pays them into their salary. Can a company do this.
Pls reply immediately its urgent
From India, Mumbai
Pls reply immediately its urgent
From India, Mumbai
Am into Pvt Ltd company. I want to know that is any space available in any or all of them PF, ESI, PT .DA,ALSO OTHERS SALARY ADMINISTRATION IN law that company dosent deduct from employe and pays them into their salary. Can a company do this.
Pls reply immediately its urgent
From India, Mumbai
Pls reply immediately its urgent
From India, Mumbai
I think the thread was initially posted to get advice as to how could an employer get out of EPF and ESI coverage. Am I right?
Simply increasing the wages/ salary of employees beyond 10000 or 6500 as suggested by some of the members will not serve the purpose. This is because, first of all, the basic thing determining the coverage of ESI/EPF is the number of employees. An organisation employing not less than 20 will be covered under the EPF and a factory employing 10 (other establishments employing 20) are covered by ESI. Then who are covered and whose contribution are to be deducted and contributed will be decided by the salary paid. Certainly an employee drawing more than Rs 6500 AT THE TIME OF JOINING/ at the time of enforcement of EPF will not be covered under the EPF and one drawing more than Rs 10000 will not be covered by ESI. But the establishment will be covered for those who are drawing less than the limit specified irrespective of the number of employees. Let there be one person whose salary is Rs 6500, contribution and returns in respect of him shall be submitted. Similarly let there be one employee whose salary is less than 10000, ESI is respect of him shall only be submitted.
Now inorder to avoid ESI/EPF, if you raise the salary, you will be at a risk. At any time the government may announce an upward shift of salary. There has been revisions from time to time, say from 2500 to 3500, from 3500 to 6500 and 7500 and now the limit of salary has been fixed at 10000, and we cannot say that the limit will remain at 10000/ 6500.
Hence it is advisable to be covered. Moreover, once ESI is covered, many compensations which would otherwise be payable by the employer would be shifted to the ESI Corporation.
Regards,
Madhu.T.K
From India, Kannur
Simply increasing the wages/ salary of employees beyond 10000 or 6500 as suggested by some of the members will not serve the purpose. This is because, first of all, the basic thing determining the coverage of ESI/EPF is the number of employees. An organisation employing not less than 20 will be covered under the EPF and a factory employing 10 (other establishments employing 20) are covered by ESI. Then who are covered and whose contribution are to be deducted and contributed will be decided by the salary paid. Certainly an employee drawing more than Rs 6500 AT THE TIME OF JOINING/ at the time of enforcement of EPF will not be covered under the EPF and one drawing more than Rs 10000 will not be covered by ESI. But the establishment will be covered for those who are drawing less than the limit specified irrespective of the number of employees. Let there be one person whose salary is Rs 6500, contribution and returns in respect of him shall be submitted. Similarly let there be one employee whose salary is less than 10000, ESI is respect of him shall only be submitted.
Now inorder to avoid ESI/EPF, if you raise the salary, you will be at a risk. At any time the government may announce an upward shift of salary. There has been revisions from time to time, say from 2500 to 3500, from 3500 to 6500 and 7500 and now the limit of salary has been fixed at 10000, and we cannot say that the limit will remain at 10000/ 6500.
Hence it is advisable to be covered. Moreover, once ESI is covered, many compensations which would otherwise be payable by the employer would be shifted to the ESI Corporation.
Regards,
Madhu.T.K
From India, Kannur
Hi, Best thing is to engage a consultant to handle your ESI and PF affairs. Both these are tricky areas and whatever you do, you are likely to err somewhere. Consultants charge reasonable fees based on headcount, and take care of all your returns, appropriate policy implementation help, and corrective action at ESi and PF offices at some separate extra cost.
From India, Pune
From India, Pune
Hi, Best thing is to engage a consultant to handle your ESI and PF affairs. Both these are tricky areas and whatever you do, you are likely to err somewhere. Consultants charge reasonable fees based on headcount, and take care of all your returns, appropriate policy implementation help, and corrective action at ESi and PF offices at some separate extra cost.
From India, Pune
From India, Pune
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