180 Employees Above 6500 Basic-pf Applicability

Dear Mr Mukesh.
First of all I want to give you my greetings for doing the best job and sharing your vast knowledge with us.
My name is Amit Arora, I am an HR in a company which is into Software and web development with a total no of employees 12 and increasing. Salary vary from 5000/- to 22000/-
1) Are we come under any types of acts as EPF or ESI?
Thanks & Regards
Amit Arora
HR

Aplicability of PF for a company shows it's ethics & value towards the workers. Please insist of PF deduction for all employees. Minimum 12% of Basic should be the calculation & not the least of Rs. 780.

Dear All,
There is an option that you can deposit P.F since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10, 000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer’s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees’ Pension Fund.

Dear Kunal,
It was made mandatory for companies enrolled under Karnataka state to get the code for ESI irrespective of whether they pay salary less/more 15K.
please check for other states.
regards
suneel

Dear Vijaya
You want clarification on the point that your's is a software company based in Hyderabad with 60 employees all above the PF limit and few below Rs.15,000/- Is it mandatory for us to register for ESI.
First of all you have to clarify that how much your employee strength, thereafter, how many employees are drawing Rs. 15,000/- or less than Rs. 15,000/- thereafter I will clarify the position of the applicablity of the Provdient Fund as well as ESI.

Dear Athreya
Rs. 5/- in Account No. 2 (EDLI Admn Charges) and Rs. 2/- in Account No. 22 (Admn Charges), is the minimum payment even if there is no recovery is made against the management/ establishment, it was notified by the Government vide notification No. S. O. 875(E), dated 10.10.1987 as amended by S. O. 237, dated 11.1.1989. Kindly go through this Notification, its very clear.

Dear Mr Amit
Your company is in Software and web development with a total no of employees 12 and increasing. Salary vary from 5000/- to 22000/-.
If your employee strength is only 12 including your contractor like house-keeping, security and other who have deputed their employee at your establishment, then provisions Employees' State Insurance Act, 1948 & Employees' Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable. In case the number of employee including contractor like house-keeping, security and other who have deputed their employee at your establishment is 20 or more than 20 then provisions of ESI Act and EPF Act may attract.
Any other query in this regard, you are most welcome.

Mr. Azad,
The total no. of employees are 60. However no. of employees below Rs.15000/- are about 10. Rest are all above Rs.15000/-. Pl advice.
Thanks in advance
Vijaya

Dear Vijaya
The total no. of employees are 60, now the provisions of Employees' Provident Fund & Miscellaneous Provisions Act are applicable. But, the provisions Employees' State Insurance Act, 1948 are not applicable if the above 10 employees (including the employee of contractor and other agency who have deputed any employee at your establishment and drawing Rs. 15,000/- of less than).
But, the ESI Corporation is going to implement/applicablity the ESI on the etablishment where 10 or more employees are employed.

Hi sir,



I saw an advice given by you and hence am looking up to you to get a clarification on the applicability of the PF Act.



We are an IT Infrastructure Management Company located at Kochi, Kerala. We have an employee strength of exactly 20 as on date. We have not so far got covered under PF Act.



As per the facilities/policy relaxations provided to Micro, Small and Medium Establishments by the Govt of India, (Laghu-udyog.com - Labour Policies for Small Scale Industries in India), the Scope of the Act Excludes establishments employing 50 or more persons or 20 or more persons but less than 50 persons, until the expiry of three years in the case of the former, and five years in the case of the former, and five years in the case of the latter, from the date of setting up of establishment. Having been incorporated as a Private Limited Company on 30 May 2007, we seem to be required to seek coverage only after 30 May 2012.



Please clarify the validity of the above, as the PF authorities at Kochi do not agree to this and say no such provision exisits in the Act