08 October 2013
Can any one tell me that the limit of applicability of ESI and PF . and tell me also that ESI and PF is only applicable to Companies or to the partnership firm or.........
If an Employer has equal to or more than 20 employees, it is mandatory for him or to join the Employee Provident Fund Scheme.
Every Employee in India should have an Employee Provident Fund if He / She has a salary above Rs. 6500/-. If the Employer does not have it, employee has right to ask for EPF in his name. Generally, Employer has to pay the equivalent amount for EPF as much as the employee pays.
Rate of contribution payable by a member shall be @ 12% of his emoluments.
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
ESI to be deducted on basic salary less than or equal to Rs. 15000/- per month or It is deducted if Gross Salary (Basic+DA+HRA+Allowances)is less than or equal to Rs. 15000/- per month (1.75% will be deduct from salary and and employer contribution will be 4.75%.
ESI Laws are applicable on employees receiving a salary less than or equal to Rs. 15,000 in establishments which employ more than 10 persons.
For the purpose of getting ourselves registered with the ESI Department, we will need to get a form filled up from all employees covered under this scheme.
To know more regarding ESI benefits you are requested to visit the link given below: http://www.esic.nic.in/other_scale_mb.php
LIABILITY TOWARDS ESI
As per law, the liability towards ESI is 6.50% of the total salary paid to an employee. The contribution payable to the government is shared as under:-