Could you please help us with an answer? An employee receiving 12,000 per month for one year. Can ESIC and EPF not be deducted from his salary if an agreement on stamp paper is taken stating that ESIC and EPF should not be deducted? Will this be as per the law?
From India, Rewari
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From India, Rewari
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1. Sir, contributions under the ESI Act, 1948, EPF & MP Act, 1952, are statutory in nature and are not optional. Non-deduction, i.e., non-payment of contributions under the above Acts, is an offense punishable under the said Acts.
2. Any undertaking or affidavit that violates any statutory law is void ab initio, illegal, and has no force in law.
From India, Noida
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9652. Any undertaking or affidavit that violates any statutory law is void ab initio, illegal, and has no force in law.
From India, Noida
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Dear Vishwas, EPF & ESI are statutory. Accordingly coverage and subsequent contributions are mandatory at any circumstances. Hence the statement of employee for non contribution is illegal. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Hi Vishwas,
ESI and EPF are the statutory benefits for the employees; no one should decline the benefits as per their whims and fancies. Moreover, the agreement you have made on stamp paper is invalid. Try to explain to them what the benefits of ESI and EPF are first. No insurance company can provide benefits as ESI does, no corporate hospital provides the treatment like ESI; millions of IPs and their families are being treated by ESI. It is obligatory to adhere to the statutes; else you will be in soup tomorrow.
Seniors, please correct me if I am wrong.
Best Regards,
Ravichandra Paanem
From India, Hyderabad
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ESI and EPF are the statutory benefits for the employees; no one should decline the benefits as per their whims and fancies. Moreover, the agreement you have made on stamp paper is invalid. Try to explain to them what the benefits of ESI and EPF are first. No insurance company can provide benefits as ESI does, no corporate hospital provides the treatment like ESI; millions of IPs and their families are being treated by ESI. It is obligatory to adhere to the statutes; else you will be in soup tomorrow.
Seniors, please correct me if I am wrong.
Best Regards,
Ravichandra Paanem
From India, Hyderabad
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Dear Vishwas,
The stamp paper agreement is not valid as per law as ESI and PF are statutory benefits for employees if the establishment is covered under the ESI Act and EPF Act. Please check the applicability to your establishment by referring to the acts.
If an Employee's Gross Salary is less than 15,000/-, they should be covered under ESI, and if the Basic Salary is less than 15,000/-, they should be covered under PF. The deductions should be done accordingly irrespective of your stamp paper agreement; otherwise, the Employer will be penalized by the concerned authorities.
Thanks and Regards,
Prathap
Senior Executive-HR
Narayana Health
From India, Madras
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The stamp paper agreement is not valid as per law as ESI and PF are statutory benefits for employees if the establishment is covered under the ESI Act and EPF Act. Please check the applicability to your establishment by referring to the acts.
If an Employee's Gross Salary is less than 15,000/-, they should be covered under ESI, and if the Basic Salary is less than 15,000/-, they should be covered under PF. The deductions should be done accordingly irrespective of your stamp paper agreement; otherwise, the Employer will be penalized by the concerned authorities.
Thanks and Regards,
Prathap
Senior Executive-HR
Narayana Health
From India, Madras
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Hi Vishwas,
There is no law that will entertain such things. The employee shall be enrolled in ESIC & PF. Also, note that, to the best of my knowledge, no agreement shall stand on employment; no agreement will be valid.
From India,
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There is no law that will entertain such things. The employee shall be enrolled in ESIC & PF. Also, note that, to the best of my knowledge, no agreement shall stand on employment; no agreement will be valid.
From India,
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Both matters are different, but in this situation, this is unfair practice. For ESIC, a person getting a salary less than 15000/- (without W.A) must be an ESIC member, meaning ESI covered. For EPF, a person receiving a salary with more than 15000/- basic can submit a declaration form No. 11 and choose not to be a part of EPF (if he was not a member of EPF or EPS earlier in life).
From India
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From India
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