Hello everyone, greetings!
My query is regarding ESI & PF. Are both of these things mandatory for employees earning less than 15k per month? What about employees earning only 10k? If deductions for both ESI and PF are carried out, they might not be satisfied as they will receive less take-home salary.
Can anyone provide me with a document that clarifies payroll point by point, addressing my doubts? Please enlighten me; I am a beginner in payroll.
Thanks
From India, Ghaziabad
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6My query is regarding ESI & PF. Are both of these things mandatory for employees earning less than 15k per month? What about employees earning only 10k? If deductions for both ESI and PF are carried out, they might not be satisfied as they will receive less take-home salary.
Can anyone provide me with a document that clarifies payroll point by point, addressing my doubts? Please enlighten me; I am a beginner in payroll.
Thanks
From India, Ghaziabad
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PF is mandatory for any person whose Basic Salary is less than 15K/month. ESIC is mandatory for any person whose Gross Salary is less than 21K/month. You can read the PF Act and ESIC act for any proofs that you need. If the take-home is less after these deductions, it will not entitle you to stop the deductions towards the same. Also, in PF, even if the Basic Salary crosses 15K/month, as it was getting deducted earlier, you have to keep on deducting. With ESIC, if the Gross Salary crosses 21K/month, you need to stop the deduction (check the period before you stop the deduction).
Regards,
From India, Mumbai
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Regards,
From India, Mumbai
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