Hi, One of our employees had monthly gross salary of Rs 30000/- and so he was not gligible for PF enrollment (as salary above Rs 15000) and not eligible for ESI enrollment (as salary above 21000). but the employee leaves the company in just 5 days. Now my query is
i) Since he has to be paid for 5 days and his salary comes to Rs 5000, whether PF & ESI enrollment becomes mandatory for him as he is paid only Rs 5000.
ii) Also Professional Tax for him is to be paid or not as... if he had continued for full month then definitely P. Tax deduction was mandatory but here since he has to be paid only Rs 5000 and in our state, P. Tax deduction is not required if salary is below Rs 10000.
Thanks
From India, Nagar
i) Since he has to be paid for 5 days and his salary comes to Rs 5000, whether PF & ESI enrollment becomes mandatory for him as he is paid only Rs 5000.
ii) Also Professional Tax for him is to be paid or not as... if he had continued for full month then definitely P. Tax deduction was mandatory but here since he has to be paid only Rs 5000 and in our state, P. Tax deduction is not required if salary is below Rs 10000.
Thanks
From India, Nagar
PF and ESI are payable on notional wages and since it is above rs 15000/ 21000, you need not pay P or ESI
Profession Tax is payable on earned income. The relevant Act (it is a stat Act and will vary from state to state) will provide the limit over which the tax becomes payable. Similarly, there will be a provision that in order to be taxable, he should have spent at least two months in the half year in the place coming under the jurisdiction of the local administration. Please check that and decide whether to pay it or not. Under Kerala rules, there is a minimum amount of revenue, ie, Rs 12000 per half year below which the income is not subjected to levy of profession tax. Similarly, one should have worked at last for 2 months.
From India, Kannur
4240Profession Tax is payable on earned income. The relevant Act (it is a stat Act and will vary from state to state) will provide the limit over which the tax becomes payable. Similarly, there will be a provision that in order to be taxable, he should have spent at least two months in the half year in the place coming under the jurisdiction of the local administration. Please check that and decide whether to pay it or not. Under Kerala rules, there is a minimum amount of revenue, ie, Rs 12000 per half year below which the income is not subjected to levy of profession tax. Similarly, one should have worked at last for 2 months.
From India, Kannur
Dear ANNONYMOUS,
If any employee covered for PF and ESIC then his/her salary must be deducted for PF & ESIC even if you are paying him 1 day salary.
In your case if he is covered under PF then deduct 12% of basic component of his 5 days salary and if he is covered under ESIC then deduct 0.75% of his gross salary as PF & ESIC deductions.
Regards
From India, Mumbai
If any employee covered for PF and ESIC then his/her salary must be deducted for PF & ESIC even if you are paying him 1 day salary.
In your case if he is covered under PF then deduct 12% of basic component of his 5 days salary and if he is covered under ESIC then deduct 0.75% of his gross salary as PF & ESIC deductions.
Regards
From India, Mumbai
Let me confirm that an employee becomes covered under ESI or PF only if his notional salary is below Rs 21000 or Rs 15000, as the case may be. registration should have been made on the day of his joining itself. If you have agreed to pay Rs 30000, you should not have registered him under ESI or PF. Now, instead of 5 days, suppose he had worked for 11 days. Is it possible for you to register him under ESI? No.
In short period engagement, the notional wages, the salary that would have been paid had the employee worked for 30 days should be taken as salary.
Please find a circular from ESIC in this regard. Similar circular is also there on EPF also. But I don't find it in my fingertips right now.
From India, Kannur
In short period engagement, the notional wages, the salary that would have been paid had the employee worked for 30 days should be taken as salary.
Please find a circular from ESIC in this regard. Similar circular is also there on EPF also. But I don't find it in my fingertips right now.
From India, Kannur
Hi Madhu Sir,
Need your expert advise on ESI query.
As we have outsourced Manpower for HK/ Pantry boys.
Now one of Pantry boy father met with an accident & when he went to ESI he came to know that his fater name is not added in ESI.
As per contractor they have asked multiple times to all HK/ Pantry boys to provide family details like Aadhar to enroll there family members buy they did not provide .
Contractor does not have any proof that they have asked HK/Pantry persons to provide details.
Now as per my understanding this is a compliance issue & needs to be taken care by Contracotr but as per contractor HK persons did not share there family detials hence family is not added.
Pls pour your valubale suggestions. What to do & what is act says.
From India, Delhi
Need your expert advise on ESI query.
As we have outsourced Manpower for HK/ Pantry boys.
Now one of Pantry boy father met with an accident & when he went to ESI he came to know that his fater name is not added in ESI.
As per contractor they have asked multiple times to all HK/ Pantry boys to provide family details like Aadhar to enroll there family members buy they did not provide .
Contractor does not have any proof that they have asked HK/Pantry persons to provide details.
Now as per my understanding this is a compliance issue & needs to be taken care by Contracotr but as per contractor HK persons did not share there family detials hence family is not added.
Pls pour your valubale suggestions. What to do & what is act says.
From India, Delhi
Failure to add the family members' details is a negligence but is not a compliance issue. But the contractor should have collected the information in form 1 instead of collecting the details orally. In the absence of the family members' details in form 1 it can be construed that the employee has no family (spouse and children) and nor his father and mother are dependent on him. it is also possible that their monthly income exceeds Rs 9000.
Every one knows that everything is online now. But that does not mean that the old forms and formats should be scrapped. Most of the HR persons don't collect form 1 when an employee joins but registers the employee puting the mandatory details only in the employee registration field available in the online portal. If you had given the form 1 he would have filled in the names and other details of his father and mother and you could have registered them also. And, if he has not furnished the details of his father and mother, it could be taken that he does not have father or mother or none is dependent on him.
Now adding the dependents predated is not possible. At least for future treatment etc, it could be of use. Therefore, you may register them at least now.
From India, Kannur
Every one knows that everything is online now. But that does not mean that the old forms and formats should be scrapped. Most of the HR persons don't collect form 1 when an employee joins but registers the employee puting the mandatory details only in the employee registration field available in the online portal. If you had given the form 1 he would have filled in the names and other details of his father and mother and you could have registered them also. And, if he has not furnished the details of his father and mother, it could be taken that he does not have father or mother or none is dependent on him.
Now adding the dependents predated is not possible. At least for future treatment etc, it could be of use. Therefore, you may register them at least now.
From India, Kannur
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Online payment of PF mandatory from 1.1.2016.pdf
PF & ESI.zip
Presentation PF&ESI.ppt