My company's name is Grid Focus. We are into outdoor advertisements and corporate gifting. Ours is a partnership company started 2 years back. At present, we have no employees, but from next month, we are appointing one. The salary we have decided to give him is Rs. 20,000 per month.
1. What should the salary breakup be like?
2. Do we need to have a PF registration?
3. Do we have to follow any other compliances?
From India, Tiruchi
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1. What should the salary breakup be like?
2. Do we need to have a PF registration?
3. Do we have to follow any other compliances?
From India, Tiruchi
Acknowledge(0)Amend(0)
Applicability of PF and ESIC
As of now, PF and ESIC (if the geographical area of your office is covered under ESIC) are not applicable. However, consider that if in the future you are required to increase the number of employees, both can become applicable. PF is applicable if you employ 20 or more employees drawing ₹15,000 or less, and ESIC is applicable if you employ 10 or more employees drawing ₹21,000 or less.
To be on the safer side, you can design the pay to be more than ₹21,000, if not immediately, then maybe down the years. Distribute ₹21,000 in components like Basic and DA.
Regards, Shailesh Parikh
[Phone Number Removed For Privacy-Reasons]
Vadodara
From India, Mumbai
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305As of now, PF and ESIC (if the geographical area of your office is covered under ESIC) are not applicable. However, consider that if in the future you are required to increase the number of employees, both can become applicable. PF is applicable if you employ 20 or more employees drawing ₹15,000 or less, and ESIC is applicable if you employ 10 or more employees drawing ₹21,000 or less.
To be on the safer side, you can design the pay to be more than ₹21,000, if not immediately, then maybe down the years. Distribute ₹21,000 in components like Basic and DA.
Regards, Shailesh Parikh
[Phone Number Removed For Privacy-Reasons]
Vadodara
From India, Mumbai
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