EPF AND ESI APPLICABLITY

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SHAMNHU NATH TRIVEDI (Querist)
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09 March 2020 One of my Client has No of Employee above 20 ESI & EPF was applicable to Him, Now No of Employee falls below 10 Whether he may be withdraw from Compliance of ESI & EPF
2. I further want to know Whether Basic Salary will be taken For Calculation of EPF & ESI or It will have to Take Basic Salary Plus all allowances for Such Calcualtion

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 March 2020 1 No such withdrawal not allowed.
2 It's basic salary plus allowance.

Eswar Reddy S

Eswar Reddy S (Expert)
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09 March 2020 If the fall is permanent then you may make an application to PF Commissioner to close PF reg to sustain the organisation from compliance burden.. For PF calculation , salary has limited scope, mostly it include basic+DA+Conveyance+Special allowance.But in practice most of the organisations use Basic salary only(Few org basic +DA)

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