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Urgent please - ESI, PF applicability

Arun A P (Learning thro experience) (64 Points)

30 April 2011

Hi friends, Urgent query,

I have query regarding ESI applicability

In one of my client's place a person is supplying manpower for which he raises invoices and apart from that he also do some little sub contract work by employing 5 of his own persons(every time these persons will be changed). The sub contract work is not a routine one. for the past 6 months he raised about 6 bills amounting to Rs. 1 Lakh. I want to know whether ESI, PF is applicable on that Sub contract Work.

If so, At what amount those should be deducted?

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7 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 30 April 2011

PF applicable where 20 or more persons are employed in any day in previous month

12% employee share + 12% employer share + 1.1% admin + 0.5% EDI +0.01% EDI admin exp

to be deposted within 15th of following month

ESI applicable where 10 or more persons are employed in any day in previous month

1.75% exmpoyee's share + 4.75% employer's share

to be deposted within 15th of following month

1 Like

MUKESH SHARMA (B.Com , MBA, CS*) (108 Points)
Replied 06 July 2011

I Complete agree with Dear U S Sharma. its basic funda for applicablity of ESI & PF

In your case ESI & PF is not applicable due to the limit of Manpower.

Employer is also use for count in the manpower 10 In ESI & 20 in PF . But no deduction of ESI & PF

Ankit Tulsyan (Chartered Accountant) (33 Points)
Replied 12 September 2011

If the company has more than 20 employees but it pays less than 6500 to 2-3 employees only, will it be required to get registered under PF?

MUKESH SHARMA (B.Com , MBA, CS*) (108 Points)
Replied 12 September 2011

It is mandatory to registered Under PF if 20 or more employee..

MUKESH SHARMA (B.Com , MBA, CS*) (108 Points)
Replied 23 September 2011

If you are paying less than 6500 still applicable ..

PF Condition -- Employee 20 or more as per theory ( But practical consider it 19 or more because Inspector can add the owner of the co. for counting 20)...