Applicability Of PF & ESI - Employees State Insurance

Hi All,

I have one query regarding "The Employee's Provident Fund Act" and "The Employees State Insurance Act". I want to know the applicability of PF and ESI to employees who are working under a probation period. For example, I am working in a BPO/ITES Company for the last 2 months. I am still in the probation period. Is the company/employer liable to Provident Fund and ESI, or can the company start paying me PF and ESI only after my permanent appointment? Also, if they sack me after paying one month's PF and ESI, what steps should I follow to get back my PF deposits? What steps should the employer take to close my PF account? Are there any legal obligations to be followed?

Please help me out. :)

Thanks and Regards,
Debu

Hi,

If you fall under ESI and PF, then the applicability will start from day 1 of employment, irrespective of whether the employee is on probation or confirmed.

You can withdraw the ESI and PF deductions by filling up the requisite withdrawal forms. I believe you have to be with the company for a period of two or three months to withdraw the same.

Regards,
Akanksha

Dear Akansha,

Thank you for helping me.

So, only casual/temporary employees cannot claim PF and ESI, is that right?

Do employers need to do anything to close PF and ESI accounts once an employee resigns?

Regards,
Debu

Dear Debu,

Whenever an employee leaves the organization, the employer discontinues the payment of PF and ESI contributions in the employee's account after settling the full and final account. However, after the employee withdraws the PF amount from the PF Department, the employee's account will be closed by the PF department.

Regards,
Harish

Hi, Debu,

The PF & ESI are applicable to all employees working in an organization where the organization is covered under the PF & ESI Act or these Acts are applicable. After 30 days from the date of leaving the organization, you can apply for withdrawal of the PF contributions deposited by your employer from the PF organization, or you can apply to transfer the same to your new employer's account. The ESI contribution is not refundable as it only provides medical and disablement benefits to the employees during the contribution period when he/she has paid the contribution.

Thanks,
Dilip Jana
Jamshedpur

Hi,

I changed my company 2.5 years ago and applied for a PF transfer. Unfortunately, I don't know whether my PF was transferred or not as I have neither received a confirmation of transfer nor any PF statement. Is there a way I can figure that out? Would going to the PF department in the city with my PF number help? Any pointers would be appreciated.

Thanks

I want to ask whether the ESI deducted from employees earning salaries of 7500 or below is based on their gross salary or their net salary for the month.

Dear Friend,

Now, the ESI ceiling has been changed to Rs 10,500. The employees whose gross salary is below Rs 10,500 are applicable under the ESI Act.

Hi,

PF and ESI are deducted for all kinds of employment if the organization you are working for is covered under the Act. You cannot withdraw ESI. An organization cannot withdraw or transfer PF unless you sign the withdrawal/transfer document. PF is deducted on Basic + DA, and ESI is deducted from your gross salary, i.e., all that you receive every month. The ESI cutoff limit is Rs. 10,000.

Normally, it is suggested to withdraw your PF rather than getting it transferred as the transfer process takes a longer time. If you change your location, it becomes more difficult. You can request your previous employer about the status of your PF transfer.

Akriti

Debu,

Please refer to the attachments to have more details and clarity on the topics.

P.S. The attachments were already posted by our colleagues of Citehr. I am attaching the same for your reference.

Hi Akansha,

I'm working in an MNC. I have completed my probation (6 months), but they didn't give any hikes. Now they are saying I have to work another 3 months in probation before receiving a hike. I am now thinking of leaving this company. How can I get my PF and ESI? If there are any mistakes, I apologize.

Thanks in advance.

Regards,
Ankitha

Hi,

I have heard that the PF applicability has changed. Earlier, it was for 20 employees or more, but now it is for 10. However, I didn't find any information about it on the internet. If anybody has any information regarding this, please let me know.

Regards,
Manoj Purohit