Hi, In our company they part the salary only in & we didn’t deduct PF & ESIC at any level of salary ranges from 5000 to 18000 per month to employee. will it harm us in HR terms???
From India, Delhi
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1From India, Delhi
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It is illegal. So do not worry convey this to Directors / Owners otherwise also they have to answer government authorities for this.......
From India, Pune
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From India, Pune
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All statutory bodies will initiate inspections for all types of industries, and penalties will be levied with damages and interest. If the said amount is not documented in papers or your balance sheet, that's good. However, if everything is shown, you must be prepared to pay the excess amount along with a fine/interest. It is advisable to inform your management and seek the assistance of a consultant to devise a strategy that would help your management navigate any shortfalls during inspections. This experience will also be a valuable learning opportunity for you. As an HR professional, you must ensure that all benefits for your workers are provided under any circumstances.
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Thank you.
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First, please confirm whether your establishment/organization is covered under PF/ESI. Secondly, if it is not covered, how many employees are there in your organization? Thirdly, if your organization fulfills the above conditions, you cannot avoid PF/ESI as it is mandatory.
Regards,
V. Subbarao
From India, Madras
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Regards,
V. Subbarao
From India, Madras
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Calcu. pf Emp.eps.epf sample sheet for HR site..xls
PF & ESI.zip