This query is for an organization where I provide consultancy services. It's a 6-year-old organization with approximately 200 employees. According to them, since all salaries are above INR 21,000, they never registered for PF or ESIC. However, with time, employees have started asking for PF accounts. In this scenario, how can they proceed? What will happen to those employees who have been working for the past 6 years? Experts, kindly advise.
From India, Delhi
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Coverage under PF & ESIC is not only dependent on the number of permanent employees but also on the count of contractual employees engaged in that organization. There may be certain contractual employees (such as Security, Office Boy, Sweeper, etc.) where the contractor(s) fulfill the PF & ESI liability.

The condition for coverage will be from the inception of the organization (First Trade license, if a factory- factory license, S & E Registration, etc.) and the total number of employees should be 10 in the case of ESI and 20 in the case of PF, as applicable. It is also necessary to check the salary levels of permanent employees at the time of past coverage.

Please review the records in detail and provide advice accordingly.

S K Bandyopadhyay (Howrah, WB)


From India, New Delhi
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