Hi,
I have joined a private firm as an HR executive with 15 employees. They have not yet registered for PF and ESI. My COO is asking me to deduct PF and ESI for the employees. As a fresher, I don't know where to start and what to do. Can someone help me with this?
Please send the information to rami.samscse@gmail.com.
From India, Chennai
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I have joined a private firm as an HR executive with 15 employees. They have not yet registered for PF and ESI. My COO is asking me to deduct PF and ESI for the employees. As a fresher, I don't know where to start and what to do. Can someone help me with this?
Please send the information to rami.samscse@gmail.com.
From India, Chennai
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Dear Rameela,
An employer has no right to keep employees' EPF and ESI contributions if your establishment has not been registered under EPF and ESI. Please check whether your establishment falls under ESI coverage area.
You can approach the EPFO office for registration, and now the entire system is online, making it much easier. For detailed information on these topics, search on CiteHR and Google, where you will find plenty of material available.
If you need details regarding registration, feel free to email me at shaikh.hrd@gmail.com.
From India, Bhubaneswar
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138An employer has no right to keep employees' EPF and ESI contributions if your establishment has not been registered under EPF and ESI. Please check whether your establishment falls under ESI coverage area.
You can approach the EPFO office for registration, and now the entire system is online, making it much easier. For detailed information on these topics, search on CiteHR and Google, where you will find plenty of material available.
If you need details regarding registration, feel free to email me at shaikh.hrd@gmail.com.
From India, Bhubaneswar
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Dear,
To implement PF/ESI deductions on employees' salaries, you need to register your company under the PF and ESI Act.
PF is applicable to companies with 20 or more employees. Since your company has only 15 employees, it is not mandatory. However, if your employer wants to have PF deductions, you can do this voluntarily. Keep in mind that once the company is registered, it cannot be deregistered due to a decrease in the number of employees.
ESI is typically applicable to companies with 10 or more employees, though some states set the minimum number for registration at 20. Some states do not extend this coverage to medical and educational institutions.
Therefore, check if your state provides more relaxation in this regard.
Once the registration is completed, you can begin deducting PF/ESI. You may need to retroactively register for ESI from the date it became applicable and may have to pay arrears of ESI contributions to ESIC.
The calculation for PF/ESI is as follows:
- Employee PF = 12% of Basic
- Employer PF = 13.61% of Basic (8.33% + 3.67% + 1.1% + 0.5% + 0.01%)
- Employee ESI = 1.75% of gross
- Employer ESI = 4.75% of gross
Note that for PF calculation, the lowest basic should not be less than the minimum wage; i.e., the basic of every salary breakup should be equal to or higher than the minimum wages of your state.
For further clarification, feel free to reach out.
Corrected and formatted for readability and clarity.
From India, Delhi
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To implement PF/ESI deductions on employees' salaries, you need to register your company under the PF and ESI Act.
PF is applicable to companies with 20 or more employees. Since your company has only 15 employees, it is not mandatory. However, if your employer wants to have PF deductions, you can do this voluntarily. Keep in mind that once the company is registered, it cannot be deregistered due to a decrease in the number of employees.
ESI is typically applicable to companies with 10 or more employees, though some states set the minimum number for registration at 20. Some states do not extend this coverage to medical and educational institutions.
Therefore, check if your state provides more relaxation in this regard.
Once the registration is completed, you can begin deducting PF/ESI. You may need to retroactively register for ESI from the date it became applicable and may have to pay arrears of ESI contributions to ESIC.
The calculation for PF/ESI is as follows:
- Employee PF = 12% of Basic
- Employer PF = 13.61% of Basic (8.33% + 3.67% + 1.1% + 0.5% + 0.01%)
- Employee ESI = 1.75% of gross
- Employer ESI = 4.75% of gross
Note that for PF calculation, the lowest basic should not be less than the minimum wage; i.e., the basic of every salary breakup should be equal to or higher than the minimum wages of your state.
For further clarification, feel free to reach out.
Corrected and formatted for readability and clarity.
From India, Delhi
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Mr. Roy w.e.f sep-15 the admin charges has been reduced from 1.1% to 0.85%. So employer contribution would be 13.36%.
From India, Hyderabad
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From India, Hyderabad
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Hi Shri Suni,
Yes, you are right. The administrative charges on PF have been changed from 1.1% to 0.85%. Consequently, the minimum administrative charges would be Rs. 25 for every non-functional firm having no contributory member and Rs. 200 for any other establishments.
However, thanks for sharing your comments.
From India, Delhi
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Yes, you are right. The administrative charges on PF have been changed from 1.1% to 0.85%. Consequently, the minimum administrative charges would be Rs. 25 for every non-functional firm having no contributory member and Rs. 200 for any other establishments.
However, thanks for sharing your comments.
From India, Delhi
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