I am working in a software company as an HR Executive. Currently, we have 20+ members. Since we are eligible for PF criteria, I need to know all the details of the PF procedures for the company and staff. I also need to understand the salary structure for an IT company.
From India, Vadodara
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5From India, Vadodara
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Dear Sid,
Discuss with your Higher Management people/Directors and first take an opinion from them. Inquire about their thoughts on available resources and their readiness to take on the challenge of such coverage. Many times, Directors raise another concern that all the employees (IT professionals) have surpassed the threshold salary limit of $15,000/CTC, and thus we are not covered by PF. They suggest that this issue should be addressed at the upper level.
Please provide an update on the further actions to be taken.
Thank you.
From India
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Discuss with your Higher Management people/Directors and first take an opinion from them. Inquire about their thoughts on available resources and their readiness to take on the challenge of such coverage. Many times, Directors raise another concern that all the employees (IT professionals) have surpassed the threshold salary limit of $15,000/CTC, and thus we are not covered by PF. They suggest that this issue should be addressed at the upper level.
Please provide an update on the further actions to be taken.
Thank you.
From India
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sir, I have discuss with upper management. They want to follow all govt laws. so Need Proper guidelines .and also know about What is ESI criteria and maximum limit of salary ?
From India, Vadodara
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From India, Vadodara
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(Fact Check Failed/Partial)-The Employee's State Insurance (ESI) Act applies to establishments with 10 or more employees. The ESI salary limit is Rs. 21,000. Ensure compliance.
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Hi Mr. Sid,
ESIC Eligibility:
Organizations employing not less than 20 employees are bound to be registered under the ESIC Act.
EPF Eligibility:
Organizations employing not less than 20 employees are bound to be registered under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. The registration procedure has made online on Employer e-Sewa.
Registration under Local Shops & Establishments Act is required. In the case of a partnership firm, the firm should be registered under the Partnership Act 1932.
Regards,
Akash
From India, Secunderabad
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ESIC Eligibility:
Organizations employing not less than 20 employees are bound to be registered under the ESIC Act.
EPF Eligibility:
Organizations employing not less than 20 employees are bound to be registered under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. The registration procedure has made online on Employer e-Sewa.
Registration under Local Shops & Establishments Act is required. In the case of a partnership firm, the firm should be registered under the Partnership Act 1932.
Regards,
Akash
From India, Secunderabad
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Hi,
Thank you, sir, for your valuable reply. I have some other questions related to PF PROCEDURE.
1) Can you give me information about PF criteria?
2) How to apply for PF procedure and what documents are required for registration?
3) In the salary slip, can medical allowance and ESI both be considered, or only one?
4) What are the criteria for medical allowance and ESI?
I am very confused about medical allowance and ESI deduction. Please clear my confusion soon.
From India, Vadodara
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Thank you, sir, for your valuable reply. I have some other questions related to PF PROCEDURE.
1) Can you give me information about PF criteria?
2) How to apply for PF procedure and what documents are required for registration?
3) In the salary slip, can medical allowance and ESI both be considered, or only one?
4) What are the criteria for medical allowance and ESI?
I am very confused about medical allowance and ESI deduction. Please clear my confusion soon.
From India, Vadodara
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(Fact Check Failed/Partial)-The information provided is partially correct. Medical allowance and ESI are separate components in a salary slip. Medical allowance is a part of the salary structure, while ESI is a statutory deduction for healthcare. It's essential to ensure they are treated distinctly for compliance.
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Can anyone help me to clear this topic. Medical allowance is considered for those who has eligible for ESI? Medical allowance and ESI both are considered whose salary is up to 15k?
From India, Vadodara
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From India, Vadodara
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(Fact Check Failed/Partial)-The information provided in the user reply is incorrect. Medical allowance is not considered for eligibility under ESI. ESI eligibility is based on the gross salary, which includes basic pay and DA. Medical allowance and ESI are not directly linked in terms of eligibility criteria.
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Dear Sid,
Please find the solution as per your query.
1. Applicability - In establishments where 20 or more workers are employed,
- Any establishment employing even fewer than 20 persons can be covered voluntarily under section 1(4) of the Act.
2. Documents Required for new PF No. Code:
- List of employees
- Memorandum of articles
- Balance Sheet
- Copy of Sale Bill
- Copy of Partnership Deed
- Copy of Excise Registration Certificate
- Copy of Sales Tax Registration Certificate
3. As per my advice on the payment slip, we should deduct ESI and medical allowance must be disbursed on a six-monthly or annual basis through voucher payments.
4. ESI contribution - employee's contribution 1.75% + employer's contribution 4.75% = Total 6.5%. ESI is a statutory compliance that is mandatory for the employer to adhere to if they employ 10 or more workers, whether operating with power or without. The wage ceiling is Rs. (Basic+DA) 15000/- per month.
Usually, Medical Allowance is paid to employees not covered under the ESI Act. Medical allowance is a reimbursement allowance covering expenses on medical treatment. It can be paid up to a maximum of Rs. 15000/- per annum through vouchers on a monthly, six-monthly, or annual basis.
From India, Faridabad
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Please find the solution as per your query.
1. Applicability - In establishments where 20 or more workers are employed,
- Any establishment employing even fewer than 20 persons can be covered voluntarily under section 1(4) of the Act.
2. Documents Required for new PF No. Code:
- List of employees
- Memorandum of articles
- Balance Sheet
- Copy of Sale Bill
- Copy of Partnership Deed
- Copy of Excise Registration Certificate
- Copy of Sales Tax Registration Certificate
3. As per my advice on the payment slip, we should deduct ESI and medical allowance must be disbursed on a six-monthly or annual basis through voucher payments.
4. ESI contribution - employee's contribution 1.75% + employer's contribution 4.75% = Total 6.5%. ESI is a statutory compliance that is mandatory for the employer to adhere to if they employ 10 or more workers, whether operating with power or without. The wage ceiling is Rs. (Basic+DA) 15000/- per month.
Usually, Medical Allowance is paid to employees not covered under the ESI Act. Medical allowance is a reimbursement allowance covering expenses on medical treatment. It can be paid up to a maximum of Rs. 15000/- per annum through vouchers on a monthly, six-monthly, or annual basis.
From India, Faridabad
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(Fact Check Failed/Partial)-The information provided in the user reply contains some inaccuracies regarding the details of PF procedure and ESI deductions. It's important to ensure correct information is shared to comply with labor laws effectively.
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Thank you sir . It is very helpful for me. I have another Question .. Is their any criteria that Only govt Employees are eligible for DA ? or proprietorship Firm also want to give DA ?
From India, Vadodara
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From India, Vadodara
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(Fact Checked)-[B]Response:[/B] There is no specific criteria that only government employees are eligible for Dearness Allowance (DA). Private sector employees, including those in proprietorship firms, can also receive DA based on company policies. (1 Acknowledge point)
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hello, I want to know about the procedure of PF & ESI for proprietorship firm in Gujarat. Have any other option Instead of ESIC ?
From India, Vadodara
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From India, Vadodara
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(Fact Check Failed/Partial)-[The procedure for PF and ESI varies based on the type of business entity, not just the location. For a proprietorship firm, ESI is not applicable; the proprietor and family members are not eligible. PF is mandatory for eligible employees. Instead of ESIC, private insurance options are available.]
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(Fact Checked)-[response] (1 Acknowledge point)