ajimuddin (accountant) (30 Points)
24 October 2013Please provide me applicability and rates of PF & ESI
Employees are more than 20 members and all salaries are more than 15000 p/m
Is it mandatory to register OR deposit any amount under PF & ESI acts ?
If applicable please provide the rates, percentages etc......
My company is established in Andhra Pradesh
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 24 October 2013
Brief Information on ESI:
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:
https://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:-
1. Employee contribution: 1.75%
2. Employer contribution: 4.75%
Total:- 6.50.%
In other words, the maximum liability of ESI per employees is Rs. 975, out of which Rs. 263 shall be recovered from the employee.
Thanks
Pijush Roy
(ERP SAP Functional Tester)
(281 Points)
Replied 24 October 2013
ajimuddin
(accountant)
(30 Points)
Replied 24 October 2013
So it is mandatory to register both PF & ESI,
and need to deduct or deposit for applicable employees only.
Thank u very much for your valuable information.....
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 25 October 2013
As per ESIC Act Esic should be deducted when the gross salary is less than equal to 15000/- p.m. here your all employee's salary are more than 15000/- so no need to deduct Esic
PF is applicable when the basic salary of employee is less than 6500/- pm. if your all employee's salary are higher than basic 6500/- than no need to deduct pf also
However as your employee strength is more than 20 so please take labour license for your establishment for employing the employee
And I think as PF and ESIC are not applicable there is no need to register for the same
Jyothis
(Article)
(1127 Points)
Replied 03 January 2016
What is the meaning of basic salary to check PF Applicability is it Gross pay,Basic+DA or Basic alone
rajesh sharma
(account manager)
(21 Points)
Replied 12 April 2016
Dear Ankur,
My salary is 40K per month, I want to contribute for ESI. Is it possible? My employer says I cant contribute. :(
Jyothis
(Article)
(1127 Points)
Replied 12 April 2016
Vishal Kumar
(Student)
(37 Points)
Replied 05 May 2016
If employees salary is exceeds 15000 on 1.04.2016 then what we have to do?
Is it necessary to deduct ESI?
Vishal Kumar
(Student)
(37 Points)
Replied 05 May 2016
If employees salary is exceeds 15000 on 1.04.2016 then what we have to do?
Is it necessary to deduct ESI?
Jyothis
(Article)
(1127 Points)
Replied 05 May 2016
Contribution till the end of relevant contribution period is mandatory.i.e Apr-Sep & Oct-Mar.
On such higher Gross pay.Say is gross pay is Rs.20,000 need to compute ESI on 20k.
After end of contribution period,you can terminate such employees from ESI Coverage.
Manoj Jindal
(CA)
(117 Points)
Replied 11 July 2016
pls
any one suggest to me that esi & pf are applicable on any apartment or socity.
in which employees are more than 10.
Vikash Shah
(Real Estate Developer)
(47 Points)
Replied 14 November 2016
Please any suggestion
I had around 25 employees and have both EPF & esic registered for past two years. Now due to automisation in machinery the number of employees has been reduced to 16 permanently. Do i still need to comply with EPF regulation for remaining 16 employees.?
Saksham Sood
(17 Points)
Replied 19 December 2016
Once any labour act is applicable then it stayed applicable even when employee reduction below reqd limit.
Ajay Kumar Maggidi
(Manager - Finance & Accounts)
(2073 Points)
Replied 18 July 2017
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