Hello everyone, I've joined an MNC company as HR executive. In this company, the monthly cycle is 21st to 20th.
Is it correct method as per law. if yes how can I comply the monthly compliance like EPF & ESIC.
For eg:
If an employee resigns and his/her last working days after 20th i.e 25 March.
As per current situation, we deposit his/her PF and ESIC contribution of 5 days in April month.
Is it correct or not. if not please advise how could we comply.
Please advise.
From India, Bahadurgarh
1Is it correct method as per law. if yes how can I comply the monthly compliance like EPF & ESIC.
For eg:
If an employee resigns and his/her last working days after 20th i.e 25 March.
As per current situation, we deposit his/her PF and ESIC contribution of 5 days in April month.
Is it correct or not. if not please advise how could we comply.
Please advise.
From India, Bahadurgarh
Dear Mr. ______
Your company monthly payment cycle is 21st to 20th is for payment. That is ok but you have to pay monthly wages on or before 7th/10th of every month as per your employees strength applicable.
As per payment of wage Act/PF Act/ESIC Act monthly cycle is 1st to 30/31st
Yes Is it correct method as per law. But you have to pay contribution of monthly compliance EPF & ESIC before 15th of every month.
Regards,
Sanjay Tiwari
Dy. GM (HRD & IR)
Air Control & Chemical Eng. Co. Ltd.
M: 9727704102
From India, Mumbai
Your company monthly payment cycle is 21st to 20th is for payment. That is ok but you have to pay monthly wages on or before 7th/10th of every month as per your employees strength applicable.
As per payment of wage Act/PF Act/ESIC Act monthly cycle is 1st to 30/31st
Yes Is it correct method as per law. But you have to pay contribution of monthly compliance EPF & ESIC before 15th of every month.
Regards,
Sanjay Tiwari
Dy. GM (HRD & IR)
Air Control & Chemical Eng. Co. Ltd.
M: 9727704102
From India, Mumbai
Dear Mr Sanjay,
Thank you for your quick response.
We pay the wages approximately 27-28-29 on every month and prepared the pf & esic challan approximately 1-4 every month.
As I earlier ask for an example: If an employee resign and his/her last working days after 20th i.e 25 March.
He/she left in march but we submit his/her 5 days contribution of pf & esic in april month. is it also correct or not?
if we are submiting his/her 5 days contribution in april month so his left month is april not march. but actual he/she has left in march.
From India, Bahadurgarh
Thank you for your quick response.
We pay the wages approximately 27-28-29 on every month and prepared the pf & esic challan approximately 1-4 every month.
As I earlier ask for an example: If an employee resign and his/her last working days after 20th i.e 25 March.
He/she left in march but we submit his/her 5 days contribution of pf & esic in april month. is it also correct or not?
if we are submiting his/her 5 days contribution in april month so his left month is april not march. but actual he/she has left in march.
From India, Bahadurgarh
Hi,
Salary cut of date is for the convenience of payroll processing.
In bigger Organizations where employee count are more payroll can't be process after the end of month so as to avoid salary delay. Though cut of date is 21st to 20th salary paid is from 1st to 31st /30th of the every month only. In this case leaves/lop availed by the employee will be reflecting in the next month cycle only. Otherwise full month salary is paid.
For resigned cases anyway you will be preparing separate FFS computation sheet and as per process 25 days PF/ESI to be paid in the month of April.
From India, Madras
Salary cut of date is for the convenience of payroll processing.
In bigger Organizations where employee count are more payroll can't be process after the end of month so as to avoid salary delay. Though cut of date is 21st to 20th salary paid is from 1st to 31st /30th of the every month only. In this case leaves/lop availed by the employee will be reflecting in the next month cycle only. Otherwise full month salary is paid.
For resigned cases anyway you will be preparing separate FFS computation sheet and as per process 25 days PF/ESI to be paid in the month of April.
From India, Madras
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