Dear Sir
I am running a business which started with 6 employees but now it has grown to 13 permanent staff and 15 temporary staff. Is pf and esi should be covered?. If so for esi coverage how many employees should be there and for pf how many employees?.will permanent staff is only covered under pf and esi?
Gross salary for esi and pf coverage?
Age factor has to be considered for coverage of the employees?
One of my well wisher gave me the following
Details:
Employer contribution pf-12% or max Rs.780 of basic whichever is lesser
Pf- 8.33%-employees family pension fund
3.67%-employees pf
0.50% of basic or maximum up to Rs.6500
Admin charges-1.10% of basic
Inspection -0.01% of basic
Employee contribution -12% of basic for pf
Esi -employer -4.75% of basic
Employees -1.75% of basic
Temporary staff often leave the job
Who are not stable.kindly note it.
Kindly advise me
Thanks and regards
Dhanasekar
From India, Chennai
4I am running a business which started with 6 employees but now it has grown to 13 permanent staff and 15 temporary staff. Is pf and esi should be covered?. If so for esi coverage how many employees should be there and for pf how many employees?.will permanent staff is only covered under pf and esi?
Gross salary for esi and pf coverage?
Age factor has to be considered for coverage of the employees?
One of my well wisher gave me the following
Details:
Employer contribution pf-12% or max Rs.780 of basic whichever is lesser
Pf- 8.33%-employees family pension fund
3.67%-employees pf
0.50% of basic or maximum up to Rs.6500
Admin charges-1.10% of basic
Inspection -0.01% of basic
Employee contribution -12% of basic for pf
Esi -employer -4.75% of basic
Employees -1.75% of basic
Temporary staff often leave the job
Who are not stable.kindly note it.
Kindly advise me
Thanks and regards
Dhanasekar
From India, Chennai
Hi DhanaSekar,
I give my understanding about PF & ESI to answer your queries
FOR ESI:
1. Applicable to all factories (Including Govt) other than seasonal factories which means working less than 7 months in a year.
2. Employees who are drawing upto 15,000 Rupees per month (excluding Overtime Wages) are eligible to become ESI members.
3. All workers including temporary workers are eligible to become member of ESI.
4. if the temporary workers are employed through contractors, if contractor fails to pay the ESI than it is Principal Employer Duty to pay it and deduct it from contractor payment.
FOR PF:
1. Applicable to all establishment engaged in a industry specified in Schedule-01 and where 20 or more workmen are employed.
2.PF will be deducted from all members at 12% of the Basic wages and Dearness allowances which limits up to 15,000 Rupees.
3.Employer also pay an equal amount of contribution for respective employees.
3. All workers including temporary workers employed in the schedule 1 industries are eligible to become member of PF & EPS.
Please find the attachment.
Thumbs Up
From India, Chennai
I give my understanding about PF & ESI to answer your queries
FOR ESI:
1. Applicable to all factories (Including Govt) other than seasonal factories which means working less than 7 months in a year.
2. Employees who are drawing upto 15,000 Rupees per month (excluding Overtime Wages) are eligible to become ESI members.
3. All workers including temporary workers are eligible to become member of ESI.
4. if the temporary workers are employed through contractors, if contractor fails to pay the ESI than it is Principal Employer Duty to pay it and deduct it from contractor payment.
FOR PF:
1. Applicable to all establishment engaged in a industry specified in Schedule-01 and where 20 or more workmen are employed.
2.PF will be deducted from all members at 12% of the Basic wages and Dearness allowances which limits up to 15,000 Rupees.
3.Employer also pay an equal amount of contribution for respective employees.
3. All workers including temporary workers employed in the schedule 1 industries are eligible to become member of PF & EPS.
Please find the attachment.
Thumbs Up
From India, Chennai
Dear Sir,
As per your points,it is coverable as your employees count crosses 20 no's. And amendments regarding the PF contributions effective. So please collect the information from browsing.
Regards,
Manoj Kumar Puram
From India, Hyderabad
As per your points,it is coverable as your employees count crosses 20 no's. And amendments regarding the PF contributions effective. So please collect the information from browsing.
Regards,
Manoj Kumar Puram
From India, Hyderabad
Dear Mr. Dhanasekar,
Since it is clarified that you have to take ESI-EPF Registration for ur employees. Pls take advice on any consultant, he will convey you all the points in detail.
He will provide the the registration as well and keep proper record of Statutory deductions and compliances. Coverage under PF-ESI leads to coverange under Bonus Act, Gratuity Act, Maternity Act. Though the different Acts can be applicable to non PF-ESI covered establishments. But once u covered under PF-ESI the acts become vital part of the Statutory Compliances. The consultant will advice u properly about the extra financial charge over ur business. He will also advice how to make it in proper way so that ur employee can be benefitted without any hassle in case of need.
From India, Delhi
Since it is clarified that you have to take ESI-EPF Registration for ur employees. Pls take advice on any consultant, he will convey you all the points in detail.
He will provide the the registration as well and keep proper record of Statutory deductions and compliances. Coverage under PF-ESI leads to coverange under Bonus Act, Gratuity Act, Maternity Act. Though the different Acts can be applicable to non PF-ESI covered establishments. But once u covered under PF-ESI the acts become vital part of the Statutory Compliances. The consultant will advice u properly about the extra financial charge over ur business. He will also advice how to make it in proper way so that ur employee can be benefitted without any hassle in case of need.
From India, Delhi
Your Co. Is invariably coverable under P.F. & ESI Act. P.F. Is coverable as and when you employ 20 and above persons. Whereas ESI Is coverable once you employ 10 persons only. There are lot changes in EPF Act. Presently salary limit is enhanced to ₹. 15000/-. As such the P.F. Conts. Payable is ₹. 1800/-. From employees share and 1800/- from mgt. share. Administration charges also increased for minimum payment of ₹. 500/- & ₹. 200/- in a/c. No. 2 & 22. For any further clarifications pl. our website. pfqueries.com
From India, Hyderabad
From India, Hyderabad
Hi Kumar
Thanks for sharing your valuable information.
Attached presentation file is very useful for me.
Recently I went through another ppt file on esi where when the basic +da is 10000 or lesser esi can be covered.
Likewise pf can be covered forperson whose basic +da is upto 15,000
Also advise me regarding other allowances
Thanks and regards
M.Dhanasekar
From India, Chennai
Thanks for sharing your valuable information.
Attached presentation file is very useful for me.
Recently I went through another ppt file on esi where when the basic +da is 10000 or lesser esi can be covered.
Likewise pf can be covered forperson whose basic +da is upto 15,000
Also advise me regarding other allowances
Thanks and regards
M.Dhanasekar
From India, Chennai
Hi Kumar
Thanks for your valuable information and advice
Your attached file is very useful for me.
I went through another ppt file for esi and pf coverage where esi coverage will be for employees whose basic +da
Is less than or equal to Rs.10000
Temporary staff often leave the job and are not stable
Kindly advise me ASAP
Thanks and regards
M.Dhanasekar
From India, Chennai
Thanks for your valuable information and advice
Your attached file is very useful for me.
I went through another ppt file for esi and pf coverage where esi coverage will be for employees whose basic +da
Is less than or equal to Rs.10000
Temporary staff often leave the job and are not stable
Kindly advise me ASAP
Thanks and regards
M.Dhanasekar
From India, Chennai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
PF & ESI.zip
Presentation PF&ESI.ppt