Dear Hr's,
I am working in a small manufacturing company wherein we dont have any PF or ESI and the management is looking to implement the same.Is it mandatory to implement PF or ESI in an organisation if so what is the criteria. On what parameters will an employee comes under PF or ESI and how to calculate the same.
Please help me in this regards,
Thanking you.
From India, Madras
I am working in a small manufacturing company wherein we dont have any PF or ESI and the management is looking to implement the same.Is it mandatory to implement PF or ESI in an organisation if so what is the criteria. On what parameters will an employee comes under PF or ESI and how to calculate the same.
Please help me in this regards,
Thanking you.
From India, Madras
10
Dear Mahender,
Yes, it is mandatory for the company where (in case of ESI) 10 or more workers (who are drawing Rs. 15,000/- or less than) are working and the management is getting production with the aid of power and where no production is taken and/ or trading activities and/ or commercial activities is going on, this type of units are covered at 20 employees.
In the case of the Provident Fund coverage on the establishment the employee strength must be 20 or more.
I hope that the above will satisfy your query, if any other clarification is required you are most welcome.
From India, Gurgaon
Yes, it is mandatory for the company where (in case of ESI) 10 or more workers (who are drawing Rs. 15,000/- or less than) are working and the management is getting production with the aid of power and where no production is taken and/ or trading activities and/ or commercial activities is going on, this type of units are covered at 20 employees.
In the case of the Provident Fund coverage on the establishment the employee strength must be 20 or more.
I hope that the above will satisfy your query, if any other clarification is required you are most welcome.
From India, Gurgaon
Dear All,
Mr.Mukesh pointed out correctly.
I am trying to elaborate it.....
Recent amendment in ESI specify that even without the aid of power for production units, 10 persons are enough for coverable.
As per as PF is concerned many wrongly assumed that only the no of persons drawing less than 6500 are alone taken for head count for coverable limit.
But it is not so, the coverable criteria is 20 irrespective of their salary.
For example- In a company 20 persons are working, out of them 6 persons are drawing more 6500 as their basic wages.This unit is coverable. But the mandatory coverage will be applicable to 14 persons only.
For coverage forms etc., you can download from respective websites.
S.Sethupathy
Excellent HR Services,
Erode
From India, Coimbatore
Mr.Mukesh pointed out correctly.
I am trying to elaborate it.....
Recent amendment in ESI specify that even without the aid of power for production units, 10 persons are enough for coverable.
As per as PF is concerned many wrongly assumed that only the no of persons drawing less than 6500 are alone taken for head count for coverable limit.
But it is not so, the coverable criteria is 20 irrespective of their salary.
For example- In a company 20 persons are working, out of them 6 persons are drawing more 6500 as their basic wages.This unit is coverable. But the mandatory coverage will be applicable to 14 persons only.
For coverage forms etc., you can download from respective websites.
S.Sethupathy
Excellent HR Services,
Erode
From India, Coimbatore
yes, it is necessary to deduct Pf & ESI. it is beneficial coz this amount is non taxable. Employee who is earning below to 6000/-, there Pf deduction is required & if employee is earning above to 6000/- (i.e. 6001/-) have a choice to deduct or not. Pf deduction percentage is 12% now its up to company that how much employer contribution they want.
From India, Delhi
From India, Delhi
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PF,ESI WORKING SPECIMEN.xls