Hi all,
My company is hiring security guards from a contractor, but we are not aware of their deduction of ESIC & PF. We are paying Rs. 3500 per guard plus service tax. According to their income, the contractor should provide benefits for ESIC & PF.
If they are deducting ESIC & PF, are we liable to pay ESIC & PF to the government?
From India, Mumbai
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3My company is hiring security guards from a contractor, but we are not aware of their deduction of ESIC & PF. We are paying Rs. 3500 per guard plus service tax. According to their income, the contractor should provide benefits for ESIC & PF.
If they are deducting ESIC & PF, are we liable to pay ESIC & PF to the government?
From India, Mumbai
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Dear Rachana,
ESI is contributed from both sides by the employee as well as the employer. It is calculated based on the gross salary per month, and the maximum ceiling is Rs. 10,000 per month. The contributions from both sides are as follows:
Employee Side: 1.75% of gross per month
So, if the gross salary of an employee is Rs. 8,000 per month, then the ESI contribution would be 8000 * 1.75% = 140 Rupees.
Employer Side: 4.75% of gross per month
The ESI contribution would be 8000 * 4.75% = 380 Rupees.
Additionally, PF is also paid from both sides. Both the employer and the employee are required to pay 12% of the basic salary. Out of this 12%, the employer's contribution of 8.33% goes to the Pension fund, whereas the remaining 3.67% goes to the PF Fund itself.
Regards,
Amit Seth.
From India, Ahmadabad
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ESI is contributed from both sides by the employee as well as the employer. It is calculated based on the gross salary per month, and the maximum ceiling is Rs. 10,000 per month. The contributions from both sides are as follows:
Employee Side: 1.75% of gross per month
So, if the gross salary of an employee is Rs. 8,000 per month, then the ESI contribution would be 8000 * 1.75% = 140 Rupees.
Employer Side: 4.75% of gross per month
The ESI contribution would be 8000 * 4.75% = 380 Rupees.
Additionally, PF is also paid from both sides. Both the employer and the employee are required to pay 12% of the basic salary. Out of this 12%, the employer's contribution of 8.33% goes to the Pension fund, whereas the remaining 3.67% goes to the PF Fund itself.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Amit,
Thank you for your reply. My question pertains to the security guards I am hiring. If their employer is not deducting ESIC & PF, am I liable for ESIC & PF in any case? I believe (though I am not entirely certain) that even for any repairing charges or any labor charges, the company is required to deduct ESIC.
Regards,
Rachana
From India, Mumbai
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Thank you for your reply. My question pertains to the security guards I am hiring. If their employer is not deducting ESIC & PF, am I liable for ESIC & PF in any case? I believe (though I am not entirely certain) that even for any repairing charges or any labor charges, the company is required to deduct ESIC.
Regards,
Rachana
From India, Mumbai
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Dear Rachana,
Your company is not directly required to pay these contributions to the government bodies. You are required to check whether the outsourced company is providing these benefits to their employees or not, as these employees are outsourced to you. Therefore, you are required to ask the outsourcing company to provide the returns and all details related to the same.
Regards,
Amit Seth
From India, Ahmadabad
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Your company is not directly required to pay these contributions to the government bodies. You are required to check whether the outsourced company is providing these benefits to their employees or not, as these employees are outsourced to you. Therefore, you are required to ask the outsourcing company to provide the returns and all details related to the same.
Regards,
Amit Seth
From India, Ahmadabad
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Dear Rachana,
You can demand ESIC & PF Challans per month, ESI & PF Nos. of your employees, ESI & PF return, or you can demand ESIC and PF details per month of your employees from your contractor so that you can check whether your contractor is depositing ESI & PF or not.
Regards,
Raj
From India, Gurgaon
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You can demand ESIC & PF Challans per month, ESI & PF Nos. of your employees, ESI & PF return, or you can demand ESIC and PF details per month of your employees from your contractor so that you can check whether your contractor is depositing ESI & PF or not.
Regards,
Raj
From India, Gurgaon
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Hi all, My another query is as per labour law in this situation anywhere am I defaulter? It means can goverment body take action against me if security guards are not getting benefit of ESIC & PF ?
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The employer could be held liable for not ensuring ESIC & PF deductions for security guards. Government bodies can take action if benefits are not provided. (1 Acknowledge point)
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Dear Amit,
Your reply to Rachana's query is correct, but now the salary for ESI has been raised to Rs. 10,000.00. If the employees have a gross salary of Rs. 10,000.00, then they are eligible for the deduction and benefits of ESI.
Dear Rachana,
You need to ensure that the contractors are deducting ESI and PF from the contract employees' salaries and remitting the amounts to the government. You can request monthly challans from the contractors to verify this. Failure to ensure compliance could result in sole responsibility falling on the employers during inspections.
Thanks,
Amit Shah
From India, Mumbai
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Your reply to Rachana's query is correct, but now the salary for ESI has been raised to Rs. 10,000.00. If the employees have a gross salary of Rs. 10,000.00, then they are eligible for the deduction and benefits of ESI.
Dear Rachana,
You need to ensure that the contractors are deducting ESI and PF from the contract employees' salaries and remitting the amounts to the government. You can request monthly challans from the contractors to verify this. Failure to ensure compliance could result in sole responsibility falling on the employers during inspections.
Thanks,
Amit Shah
From India, Mumbai
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(Fact Checked)-[The user's reply contains correct information regarding the increase in the salary limit for ESI to Rs. 10,000. Employees with a gross salary of Rs. 10,000 are now eligible for ESI deductions. The advice to ensure contractors are deducting ESI and PF and providing monthly challans is accurate.] (1 Acknowledge point)
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Dear Amit Shah,
Thanks. By the way, I have already specified that the ceiling for ESI is up to Rs. 10,000/- as a gross salary.
Moreover, dear Rachana, yes, the government body may ask you to produce the documents before them.
Regards,
Amit Seth.
From India, Ahmadabad
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Thanks. By the way, I have already specified that the ceiling for ESI is up to Rs. 10,000/- as a gross salary.
Moreover, dear Rachana, yes, the government body may ask you to produce the documents before them.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Rachana,
As a principal employer, you are liable to deposit ESI & PF. If ESI & PF authorities find anything wrong in that position, the principal employer is liable for these payments, and they will instruct the principal employer to deposit the amount. However, the principal employer can deduct the same amount from the contractor's bill.
Thanks,
Raj
From India, Gurgaon
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As a principal employer, you are liable to deposit ESI & PF. If ESI & PF authorities find anything wrong in that position, the principal employer is liable for these payments, and they will instruct the principal employer to deposit the amount. However, the principal employer can deduct the same amount from the contractor's bill.
Thanks,
Raj
From India, Gurgaon
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Hi all,
All of us understand that compliance with ESIC & PF is a must, and therefore all the contract workers and direct employees must be covered under the act (according to the law). But my question is that in our company, we are appointing various service contractors for providing service on-site. In a few cases, the contractor visits only 4-5 times in a month (2 to 3 people). Are we required to deduct PF & ESIC contributions?
Regards,
Arvinder Rawat
From India, Visnagar
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All of us understand that compliance with ESIC & PF is a must, and therefore all the contract workers and direct employees must be covered under the act (according to the law). But my question is that in our company, we are appointing various service contractors for providing service on-site. In a few cases, the contractor visits only 4-5 times in a month (2 to 3 people). Are we required to deduct PF & ESIC contributions?
Regards,
Arvinder Rawat
From India, Visnagar
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Bahrain labour law 2012 - 15052013.pdf
Emergence of Labour Law.doc
CiteHR.AI
(Fact Checked)-The user reply contains accurate information regarding requesting ESIC & PF details from the contractor to ensure compliance. It is essential to verify the contractor's compliance with ESIC & PF regulations. (1 Acknowledge point)