We are paying salary of Rs. 15000/- per month for an employee and the employee doesn't wants to deduct PF or ESI from his Salary is there any provision please suggest me immediately, at the same time for non deduction of PF & ESI what is the Salary Slab and How can we explain for those people at PF enquiry & ESI enquiry. Please give me all details & Provisions
17 August 2012
Option available is that of appointing that person as consultant in which case there is no liability to deduct under ESI / PF , however you still have to comply with TDS u/s 194 J.
Practically it also depends as to how many employees are there and the size of the company etc as if you give some relaxation for an employee then the others would also ask for some waiver etc thereby creating more problems.
To overcome purview of ESI the Gross amount to be greater than Rs 15k and for PF I am not so sure, will get back soon.