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Esi / pf applicability

Rashmi (CS) (90 Points)

10 May 2012

Hello Members,

I have a query regarding applicabilty of ESI to an organisation.

I am aware that the threshold limit is 10 employees and coverage limit for wage under the ESI Act is Rs 15,000/- per month.

My doubt is whether the headcount of 10 employees is taken into consideration for coverage

or is it atleast 10 employees who earn monthy wages of 15000/- and less are counted for the purpose of the coverage

under the act.

Kindly Extend your profound opinions

Regards

RASHMI

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12 Replies

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 10 May 2012

10 or more persons are, employed, or were employed, on any day of the preceding twelve months. amount of wages not matter.

Rashmi (CS) (90 Points)
Replied 10 May 2012

Thanks Sir,

If there's a case where a company wants to seek an advance registration of ESI/PF owing to its no.of employees exceeding beyond 20 in future.. is that allowed?

Also if the company had 10 employees in the preceeding 12 months but is registering now for the ESI and PF, will the deductions be done with retrospective effect for them?

swetha (accounts executive ) (141 Points)
Replied 10 August 2012

should the Providend fund and professional tax to be deducted from the salary paid to company secretary whose salary per month is Rs 15000

neelesh (student) (67 Points)
Replied 16 August 2012

If number of employees is 15

and the tenure of employees is less than 10 days (assume all employees)

am i liable to get registered under ESI

swetha (accounts executive ) (141 Points)
Replied 16 August 2012

company has already registerd under pf and esi pt act. i want to know whether the PF and PT ESI to be deducted from the salary payable to company secretary

Mahesh ch Medda (accountant) (24 Points)
Replied 05 November 2012

Is esi applicable for purchase Stickers & labels with Copany's logo.

RAJ KUMAR BHANDARI (FINANCE) (165 Points)
Replied 05 December 2012

E.S.I. LIMIT : RS. UP TO 15000/- SALARY , WHEN CROSS THE LIMIT OF CO. STOP ESI DEDUCTION

P.F. LIMIT : BASIC RS. UP TO 6500/-, BUT IN CASE OF PF, IF LIMIT IS CROSSED, PF WILL REMAIN DEDUCT UP TO JOB CONTITUATION IN LIMIT OF 780/- P.M.(6500/- X 12%) .

THANKS

1 Like

prashanth (officer) (23 Points)
Replied 07 May 2013

Dear Raj Kumar,

if salary crosses the limit of Rs.15000 , can an employee stop his contribution towards esi as employer stops his contribution.

is an employee not eligible for esi scheme who draws monthly salary more than the limit i.e.Rs.15000/-

PF:

if the basic salary exceeeds 6500, then the deduction is Rs.780/-

what about employer contribution(company ) in case the basic exceeds limit.

RAJ KUMAR BHANDARI (FINANCE) (165 Points)
Replied 08 May 2013

1. when gross salary is cross the limit(Rs. 15,000/-), the employer will stop esi contribution as well employee contribution,

2. It is not mandatory, when ur basic+da salary cross the limit (Rs. 6,500/-) u can deposit the extra amount to your PF account, but Employer is liable to deposit contribution only upto the precribed limit.

1 Like

prashanth (officer) (23 Points)
Replied 08 May 2013

Hi raj kumar,

good morning.

you mean to say that if salary croses the limit Rs.15000/- then the employee and employer stop contribution towards ESI. so that an employee will not get any benfits under esi schemes and he get excemption from the esi.

PF:

what is the percentage of extra aount that an employee can be contribute towards PF when his basic+da exceeds limit. is it 12% of basic or can he contribute whatever percentage of amount he wish to??

i understood from your email that employer contributes only prescribed amount Rs.780/- regardless of employee contribution when the basic+da exceeds ilimit .

Pl confirm above sentences.

TKKKKKK (PRACTICING CA) (3268 Points)
Replied 23 May 2013

I have client who has 40 labour. he is labour contractor...in which scheme should he register?? kindly explain me whole procedure as it is my first assignment in this field....

udhayakumar (Accounts Executive) (21 Points)
Replied 10 February 2015

Hello members,

If one person salary is Rs.12000 per month (BASIC, HRA, ALLOWANCE) other than commission and overtime. If commission and overtime amount Rs.8000 per month. Totally that person get Rs.20,000 per month. In this case ESI is applicable or not for that person??????