Dear All,
Am working one of he private limited company at Chennai. More than 300 employees are working in my one of the group company. the management decided to appoint the employees as a contract labour upto 1 year from their date of joining and also they are confirmed based on their performance with management decision and they are eligible to get PF, ESI only. not other welfare measures.
Now, i want to issue the appointment order to those who are working less than 1 year category i.e contract workers. Normally we issue the appointment order for every 3 months to contract workers.
if i issue the order for 1 year (legally) means what and all i need to mention in the appointment order and pls provide any samples regard this.
kindly give the clarification, suggestion and conclusion for my doubt.
Thanks & Regards
Suresh M
From India, Madras
Am working one of he private limited company at Chennai. More than 300 employees are working in my one of the group company. the management decided to appoint the employees as a contract labour upto 1 year from their date of joining and also they are confirmed based on their performance with management decision and they are eligible to get PF, ESI only. not other welfare measures.
Now, i want to issue the appointment order to those who are working less than 1 year category i.e contract workers. Normally we issue the appointment order for every 3 months to contract workers.
if i issue the order for 1 year (legally) means what and all i need to mention in the appointment order and pls provide any samples regard this.
kindly give the clarification, suggestion and conclusion for my doubt.
Thanks & Regards
Suresh M
From India, Madras
Dear Pardeep,
your date of joining is 2007. once an employee completed 9 year 6 months (PF Payable) service then only they are eligible to Pension when they attained the age of 58 yrs.
for Example your servie is lessthan 9.6 yrs means, your pension amount 8.33% claimed by form 10C under caliming withdrawel benifit.
by
Suresh M
From India, Madras
your date of joining is 2007. once an employee completed 9 year 6 months (PF Payable) service then only they are eligible to Pension when they attained the age of 58 yrs.
for Example your servie is lessthan 9.6 yrs means, your pension amount 8.33% claimed by form 10C under caliming withdrawel benifit.
by
Suresh M
From India, Madras
Hi,
According to my knowledge,
Employees who are drawing more than Rs.15000/- salary per month other than conveyance (regular payment) need not to pay ESI contribution.
Suppose, an employee is drawing gross salary less than Rs.15000/- per month (regular payment as per appointment order) in the beginning of the contributions period (from April 2009 to September 2009) and earning Variable Incentive, Production Bonus, Over time, Shift allowance separately in the same month. ESI contribution (1.75%) must be deducted from his total earnings.
In the middle of the contribution period ie., between April 2009 and September 2009, he got an increment and fetched to Rs.18000/- gross as regular payment per month apart from earnings like Variable Incentive, Production Bonus, Over time, Shift allowance. In such a case, employer must deduct ESI contributions on total gross + earnings like Variable Incentive, Production Bonus, Over time, Shift allowance till the end of contribution period. Deduction can be stopped from next contribution period onwards.
For PF the deduction is restricted to basic of his salary i.e. Rs. 6500 (not the gross). Employee contribution to PF is 12% of his basic and employer contribution to PF is 12% and out of 12%, 8.33% goes to pension scheme of the employee and the rest 3.67% goes to PF account fo the concerned employee.
From India, Delhi
2According to my knowledge,
Employees who are drawing more than Rs.15000/- salary per month other than conveyance (regular payment) need not to pay ESI contribution.
Suppose, an employee is drawing gross salary less than Rs.15000/- per month (regular payment as per appointment order) in the beginning of the contributions period (from April 2009 to September 2009) and earning Variable Incentive, Production Bonus, Over time, Shift allowance separately in the same month. ESI contribution (1.75%) must be deducted from his total earnings.
In the middle of the contribution period ie., between April 2009 and September 2009, he got an increment and fetched to Rs.18000/- gross as regular payment per month apart from earnings like Variable Incentive, Production Bonus, Over time, Shift allowance. In such a case, employer must deduct ESI contributions on total gross + earnings like Variable Incentive, Production Bonus, Over time, Shift allowance till the end of contribution period. Deduction can be stopped from next contribution period onwards.
For PF the deduction is restricted to basic of his salary i.e. Rs. 6500 (not the gross). Employee contribution to PF is 12% of his basic and employer contribution to PF is 12% and out of 12%, 8.33% goes to pension scheme of the employee and the rest 3.67% goes to PF account fo the concerned employee.
From India, Delhi
@MOOVENDRAPANDI : with the reference of your answer to Sarita where you have given clarity on on roll and off roll employees. I want to know what happens to those direct contract employees/consultant who did receive any PF/ESCI from any third party company or contractor. Do we need to give them PF and ESCI to such direct contractual employees ?
Regards
Richa Ranjan
From India, Gurgaon
Regards
Richa Ranjan
From India, Gurgaon
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls