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8138 Views 6 Replies
Type: HR, Report if not a HR topic
Dear All,
I have few doubts regarding the eligibility of organizations for covering under PF & ESI
For PF...As I understand the organization should have minimum 20 or more employees to cover under PF.
1. In case if the basic salary of 20 employees out of 50 total strength is less then 6500/- per month, then the organization has to contribute for PF.
2. Does being covered under the act is the same as contributing for PF.
For ESI...
I am not very much clear about the eligibility...
1. As per my knowledge, organization should have 20 or more than 20 employees to be covered under the act and their gross salary(Basic, HRA, Travel Allowance, Other Allowance) should be 15k or below(After employee contribution of PF & excluding employer contribution of PF & Gratuity).
Please correct me if I am wrong...
2. In this case also Covering under ESI act & Contributing for ESI are the same thing..
For example if any company has 50 employees and has only 7 employees having CTC 12k, so is it compulsory for them to contribute for ESI..
Please let me know the answer to these conceptual queries.
Thanks
Rashee
For the PF Coverage the head count is important irrespective of their salary.
In your case total strength to be shown as 50, but coverable employees are 20 or less. But check all the 6500 plus salary people are excluded employees or not.
As per as ESI is concerned, the recent amendment insist the coverable strength as 10.
S.Sethupathy,
Erode
ESI Applicability-
Applicability
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010)
EPF Applicability-
# Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
# Co-operative Societies, employing 50 or more persons & working without the aid of power.
# Establishments not coverable statutorily can come under the coverage of the Act statutorily.
# An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Note:I have given you the link please follow and your queries will be solved.
Regards,
Manoj Devda
Central Test Psychometric Assessment
"Recruit Right Candidate for the Right Job"
Employer contribution = 13.61 %( In the case of EPF)
Employee contribution = 12% (in the case of EPF)
Employee contribution = 1.75% (In the case of ESI)
Employer contribution = 4.75% (in the case of ESI)
Eligibility-
ESI is applicable if the salary is only below or equals to Rs. 15000
Provident Fund deduction should be 12% of salary, as per the act, salary means Basic+DA+Food Concession+retaining allowance if any, subject to a maximum salary of Rs. 6500/- the same amount should be contributed by Employer.
Payments-
Payment of ESI before 15th of the Next Month
Payment of ESI before 25th of the Next Month
Websites-
For more details about ESI click on this link-http://www.esic.nic.in/
For more details about EPF click on this link-http://www.epfindia.com/
Regards,
Manoj Devda
Central Test Psychometric Assessment
"Recruit Right Candidate for the Right Job"
For the PF Coverage the head count is important irrespective of their sa... See Sethu's complete reply
Hi Sethu,
Thanks for the response.
Rashee
You have already get the ans. of your almost all query.
But nobody ans. on your Q. which i pasted below;
"For example if any company has 50 employees and has only 7 employees having CTC 12k, so is it compulsory for them to contribute for ESI..
Please let me know the answer to these conceptual queries."
for the Q. the Ans.
Yes! you have to be registered with ESIC and deposit the contribution (empls. & Empr's) with the SBI.
If head count increased from 10, it is immaterial that how many employees comes under the bracket of 15k.
Hope this will suffice you query.
Regards
Vijay Kumar
vijaydubey2009@gmail.com
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