I seek advice for compliance-related queries since I do not have any expertise in this field. My brother, along with 30 team members (excluding the team leader), works as Chat Process Executives, with a salary ranging from 18,000-22,000 per month. They work rotational shifts per week at XXX, XXX Telecom, Moti Nagar branch, New Delhi.
They receive their salary on time, but no PF and ESI are deducted from the same. Does this raise any compliance issue for the employer? The HR team has notified at the time of joining that since they are working in such a BPO as chat executives, the company does not pay out PF or ESI to new joiners; it "applies only to senior management." There are other chat executive batches that are also not paid out PF/ESI.
From India, Delhi
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24They receive their salary on time, but no PF and ESI are deducted from the same. Does this raise any compliance issue for the employer? The HR team has notified at the time of joining that since they are working in such a BPO as chat executives, the company does not pay out PF or ESI to new joiners; it "applies only to senior management." There are other chat executive batches that are also not paid out PF/ESI.
From India, Delhi
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Hello there,
If your brother's company provides salaries without any third party involvement, the company is responsible for paying the ESI and PF contributions. To do so, the company must register with EPFO and ESIC to obtain the necessary registration codes.
Currently, if the company has a minimum of 20 employees, they are required to provide ESI and PF benefits. However, in the case of contract employees, the responsibility lies with the contractor to manage the process.
The EPF and ESI contribution slabs for certain employers should be up to ₹21,000.
My only advice for your brother is to suggest that he speaks to the company's HR department or a consultant regarding this matter.
From India, Hyderabad
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If your brother's company provides salaries without any third party involvement, the company is responsible for paying the ESI and PF contributions. To do so, the company must register with EPFO and ESIC to obtain the necessary registration codes.
Currently, if the company has a minimum of 20 employees, they are required to provide ESI and PF benefits. However, in the case of contract employees, the responsibility lies with the contractor to manage the process.
The EPF and ESI contribution slabs for certain employers should be up to ₹21,000.
My only advice for your brother is to suggest that he speaks to the company's HR department or a consultant regarding this matter.
From India, Hyderabad
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Dear Akash,
This may give clarity to you. For PF - Any person earning a basic of Rs. 15k or more can be exempted from being a PF subscriber if he was not a subscriber of PF before. However, if the person earns a basic of Rs. 15k or was a subscriber of EPFO before, then PF contributions are mandatory. For ESI - Any employee earning a gross of Rs. 21,000 or below is eligible for ESI deduction and benefits. If the BPO is not functioning as per the aforementioned rule, you can speak to them and seek reasons why.
Regards, Rahul Chhabra
From India, Delhi
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This may give clarity to you. For PF - Any person earning a basic of Rs. 15k or more can be exempted from being a PF subscriber if he was not a subscriber of PF before. However, if the person earns a basic of Rs. 15k or was a subscriber of EPFO before, then PF contributions are mandatory. For ESI - Any employee earning a gross of Rs. 21,000 or below is eligible for ESI deduction and benefits. If the BPO is not functioning as per the aforementioned rule, you can speak to them and seek reasons why.
Regards, Rahul Chhabra
From India, Delhi
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Hi all,
Thanks for sharing your feedback. Initially, at the time of joining, my brother did argue with the HR regarding PF contribution must be paid as per law, but they were too smart to convince him that they do not follow such a process in their branch. There are around 35 chat executives handling online food delivery complaints who are not members of PF and ESI. I am not sure how they have this policy running legally.
Thanks and Regards,
Akash Sharma
From India, Delhi
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Thanks for sharing your feedback. Initially, at the time of joining, my brother did argue with the HR regarding PF contribution must be paid as per law, but they were too smart to convince him that they do not follow such a process in their branch. There are around 35 chat executives handling online food delivery complaints who are not members of PF and ESI. I am not sure how they have this policy running legally.
Thanks and Regards,
Akash Sharma
From India, Delhi
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