Esi & pf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 Can any one tell me that the limit of applicability of ESI and PF . and tell me also that ESI and PF is only applicable to Companies or to the partnership firm or.........

@VaibhavJ

@VaibhavJ (Expert)
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08 October 2013 Hi,

For PF:

If an Employer has equal to or more than 20 employees, it is mandatory for him or to join the Employee Provident Fund Scheme.

Every Employee in India should have an Employee Provident Fund if He / She has a salary above Rs. 6500/-. If the Employer does not have it, employee has right to ask for EPF in his name. Generally, Employer has to pay the equivalent amount for EPF as much as the employee pays.

Rate of contribution payable by a member shall be @ 12% of his emoluments.

@VaibhavJ

@VaibhavJ (Expert)
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08 October 2013 For ESI:

Under Section 2(12) the Act is applicable to non-seasonal factories employing 10
or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels,
restaurants, cinemas including preview theatres, road-motor transport
undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private
Medical and Educational institutions employing 20* or more persons in certain
States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of
shops and other establishments from 20 to 10 or more persons. Remaining State
Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month (
w.e.f. 01/05/2010).

@VaibhavJ

@VaibhavJ (Expert)
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08 October 2013 ESI:

ESI to be deducted on basic salary less than or equal to Rs. 15000/- per month or It is deducted if Gross Salary (Basic+DA+HRA+Allowances)is less than or equal to Rs. 15000/- per month (1.75% will be deduct from salary and and employer contribution will be 4.75%.

@VaibhavJ

@VaibhavJ (Expert)
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08 October 2013 Refer: https://www.citehr.com/131452-faq-provident-fund-act-central-govt.html

For FAQ on PF.

Thanks//VaibhavJ

Ankur Garg

Ankur Garg (Expert)
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08 October 2013 Brief Information on ESI:

ESI Laws are applicable on employees receiving a salary less than or equal to Rs. 15,000 in establishments which employ more than 10 persons.

For the purpose of getting ourselves registered with the ESI Department, we will need to get a form filled up from all employees covered under this scheme.

To know more regarding ESI benefits you are requested to visit the link given below:
https://www.esic.nic.in/other_scale_mb.php

LIABILITY TOWARDS ESI

As per law, the liability towards ESI is 6.50% of the total salary paid to an employee. The contribution payable to the government is shared as under:-

1. Employee contribution: 1.75%
2. Employer contribution: 4.75%
Total:- 6.50.%

In other words, the maximum liability of ESI per employees is Rs. 975, out of which Rs. 263 shall be recovered from the employee.

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