An employee has a CTC of 20000 and he wants only ESI service. he didn’t want the PF facility .. Is it possible to give only ESI service
From India, Delhi
From India, Delhi
Hi,
PF and ESI is statutory and compulsory and not as per the wish of the employees. You can explain to the employee about the benefits of PF as a compulsory saving for his future, pension facilities after 9.6 years of service, EDLI benefits etc.
From India, Madras
952PF and ESI is statutory and compulsory and not as per the wish of the employees. You can explain to the employee about the benefits of PF as a compulsory saving for his future, pension facilities after 9.6 years of service, EDLI benefits etc.
From India, Madras
The decision on whether or not to give PF to an employee is decided by law and not the desires of an individual employee.
If the person has a starting salary (when he joined your organisation) of more than ₹ 15,000 (computed at gross less HRA), and does not have a PF Account (never had or withdrawn all the money), then he may be eligible for exemption. Please refer to the PF regulations for the same.
Please note that if he is already under PF then it can not be stopped just because his salary went higher.
You need to inform the employee that it is a statutory due and can not be skipped. In case he does not know the benefit, I suggest you inform him of the same too.
From India, Mumbai
If the person has a starting salary (when he joined your organisation) of more than ₹ 15,000 (computed at gross less HRA), and does not have a PF Account (never had or withdrawn all the money), then he may be eligible for exemption. Please refer to the PF regulations for the same.
Please note that if he is already under PF then it can not be stopped just because his salary went higher.
You need to inform the employee that it is a statutory due and can not be skipped. In case he does not know the benefit, I suggest you inform him of the same too.
From India, Mumbai
Dear HR CLAL,
Some additional comments on the issue following Mr.V.M.L's reply. You have mentioned about CTC summing up to Rs.20000-00 p.m. But CTC is an all inclusive cost of employment which comprises of the components falling under the definitions of the term wage under both the ESI Act,1948 and the EPF Act,1952 and the excluded ones too.
Therefore, threshold wage under the ESI Act, being above the CTC, neither the employee nor the employer has any choice in the enrollment.
Regarding enrollment into EPF, the wage threshold is Rs.15000-00 pm only. Out of the CTC of Rs.20000/=pm, if the components constituting wages is Rs.15000/= or below, then also there is no choice to be outside the EPF. Moreover, if he is already a member of the EPF, then also he has to continue of course limiting the contribution to the threshold amount of wages.
From India, Salem
Some additional comments on the issue following Mr.V.M.L's reply. You have mentioned about CTC summing up to Rs.20000-00 p.m. But CTC is an all inclusive cost of employment which comprises of the components falling under the definitions of the term wage under both the ESI Act,1948 and the EPF Act,1952 and the excluded ones too.
Therefore, threshold wage under the ESI Act, being above the CTC, neither the employee nor the employer has any choice in the enrollment.
Regarding enrollment into EPF, the wage threshold is Rs.15000-00 pm only. Out of the CTC of Rs.20000/=pm, if the components constituting wages is Rs.15000/= or below, then also there is no choice to be outside the EPF. Moreover, if he is already a member of the EPF, then also he has to continue of course limiting the contribution to the threshold amount of wages.
From India, Salem
If the conditions I mentioned above are fulfilled, then yes if his starting salary was less than 15,000, then no
From India, Mumbai
From India, Mumbai
If the person has a starting salary (when he joined your organisation) of more than ₹ 15,000 (computed at gross less HRA), and does not have a PF Account (never had or withdrawn all the money), then he may be eligible for exemption.
Can you provide any database for this (Please refer to the PF regulations for the same)
From India, Delhi
Can you provide any database for this (Please refer to the PF regulations for the same)
From India, Delhi
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