09 August 2010
Dear Sir/Madam, I want to clarify one doubt regarding PF & ESI Registration. i.e. 1.Should we considered while calculating the no of person, when register with ESI if any person get more than Rs.15000?
2.Should we considered while calculating the no of person, when register with PF if any person get more than Rs.6500 as basic pay?
09 August 2010
for both registration total no of employees to be considered irrespective of that whether they are receivng salary more than 6500/15000. i,e if total no of employee exceeds the no. of employees required as per these act prescibed, but only 1 employee is in this limit, then also you have to registered himeself,
09 August 2010
In PF its very clear that 20 persons is the eligibility criteria.
But for ESIC.. there are different of opinions as the act says (while referring to minimum no. of employee)
"Coverage of Employees : A monthly wage limit is prescribed by the Central Govt. for the purpose of coverage of employees/workers of the aforesaid factories or establishments. An employee has been defined under Section 2(9) of the Act and means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies. The wage ceiling is enhanced from time to time. The existing ceiling effective from 01.05.2010 is15,000/- per month"
so it can be interpreted, when the ESI Act speaks about minimum 20 employees employed, it actually means 20 such employees as have been defined above i.e drawing upto Rs. 15000/- per month.
09 August 2010
Thanks Mr Jha for Clarifying the position ,but can you clarify more as word used by you is `opinion` & `Interpreted`,so is the position is `clear`without scope of any doubt /interpretations,or is it one section of people`s opinion/interpretation which is backed by case laws.
CAclubindia
