could you please help us with answer. an employee receiving 12000 per month for one year can esic epf not be deducted from his salary an agreement on stamp paper is taken stating that eisc epf should not be deducted will this be as per law
From India, Rewari
1. Sir, contributions under ESI Act, 1948 & EPF & MP Act, 1952 are statutory in nature and are not optional. Non-deduction i.e. non-payment of contributions under above Acts is an offence punishable under said Acts.
2. Any undertaking or any affidavit etc.which violate and is against any statutory law is void ab-initio, illegal and has no force in law.

From India, Noida
Dear Vishwas, EPF & ESI are statutory. Accordingly coverage and subsequent contributions are mandatory at any circumstances. Hence the statement of employee for non contribution is illegal. Abbas.P.S
From India, Bangalore
Hi Vishwas,
ESI and EPF are the statutory benefits for the employees, no one should decline the benefits as per their whims and fancies.
more over the agreement which you have made on stamp paper is invalid. Try to explain them what are the benefits of ESI and EPF first. No insurance company can provide benefits as ESI does, no corporate hospital provides the treatment like ESI, millions of IPs and their families are being treated by ESI.
It is obligatory to adhere to the statutes else you will be in soup tomorrow.
Seniors please correct me if i am wrong.
Best Regards
Ravichandra Paanem

From India, Hyderabad
Dear Vishwas,
The stamp paper agreement is not valid as per law, as ESI & PF are the statutory benefits to the employees, if the establishment covers under ESI ACT & EPF Act. Check the applicability to your establishment by referring the acts.
If Employee Gross Salary is <15000/- , he should be covered under ESI and Basic Salary < 15,000/- he should be covered under PF and the deductions should be done accordingly irrespective of your stamp paper agreement, otherwise Employer will be penalised by the concerned authorities.
Thanks&Regards
Prathap
Senior Executive-HR
Narayana Health

From India, Madras
Hi Vishwas, there is no Law will entertain such things, the Employee shall be enrolled in ESIC & PF, also note that as per my best knowledge no agreement shall not stand on Employment, no agreement will be valid
From India,
BOTH MATTERS ARE DIFFERENT BUT IN THIS SITUATION THIS IS UNFAIR PRACTICE. FOR ESIC, A PERSON IS GETTING SALARY LESS THEN 15000/- (WITHOUT W.A) MUST BE A ESIC MEMBER MEANS ESI COVERED. FOR EPF, A PERSON IS GETTING SALARY WITH MORE THEN 15000/- BASIC CAN SUBMIT A DECLARATION FORM NO. 11 AND DENY TO BE A PART OF EPF.,( IF HE WAS NOT A MEMBER OF EPF OR EPS EARLIER IN LIFE).
From India
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