Salaries through bank account

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This discussion clarifies that if staff wages are paid through a bank account, contributions to EPF and ESIC are mandatory, regardless of whether it's a consolidated salary or labelled as 'maintenance'. Failure to comply can lead to legal issues with labour officers. Even if employees agree to forgo deductions, employers have a statutory duty to make these contributions.

thotasrinivas

thotasrinivas (Querist)

04 September 2020 if we paid consolidated Staff wages through bank, is it required to contribute EPF & ESIC? is there any legal issues through labor officer for not contribute?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

04 September 2020 Yes if you have come under ESI and PF act it is important to pay esic and PF employees portion by deduction and employer portion by contribution even though you have shown consolidated pay.

thotasrinivas

thotasrinivas (Querist)

07 September 2020 But wager not accepting deduction of statuary any, what are the sources to pay consolidated wages without statuary deductions and we are paying under head of "maintenance" not shown in "Salaries & wages" head also.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

07 September 2020 If employee in roll you can not consider as maintenance , if it's maintenance contract TDS 194C applicable.

If it is salary all statutory deduction pt ,ESI and PF is applicable. Employee accepting or not accepting is criteria , Employer statutory duty to pay applicable compliances.

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