Exemption From ESI And PF

Dear Seniors,

I need some clarifications in terms of ESI and PF. Can any organization be exempt from ESI and PF? Can any STPI/SEZ registered companies have the option of exemption from ESI and PF? Please advise.

Regards,
Gayathri

Hi Gayathri,

STPI organizations are not exempt from PF and ESI. I believe even SEZs are not exempted.

Dear Ms. Gayathri,

As per the ESI Act of 1948, the ESI contribution is paid on all allowances except for traveling reimbursements and washing allowances. Regarding ESI coverage, an annual payout will be exempted in the case of Diwali Bonus, Attendance Bonus, and LTA paid.

Exemption for ESIC applies if the salary drawn is above Rs. 15,001. If the employer also offers medical facilities that are superior to those of ESIC hospitals, exemption can be sought.

Employers can apply for exemption concerning a class of employees who receive similar or better benefits than the statutory P.F. Scheme. Under P. 27, the employer can seek exemption from the P.F. Scheme for the entire establishment if the majority of employees consent to exemption, subject to certain conditions governing the grant of exemption and specific formalities.

Only on the ground that the establishment is set up in SEZ, ESI or EPF exemption cannot be availed. Coverage of ESI is location-wise, and there are many areas where ESI is not applicable. Therefore, all establishments set up in such areas, which are not notified as ESI covered areas, will be exempted from the operation of ESI.

Similarly, an establishment set up in an ESI notified area and thus covered by the ESI Act can take exemption from the ESI Act provided the establishment offers better benefits to its employees than those provided by ESIC. To obtain exemption, the company must apply and establish that the benefits exceed those envisaged under the ESI Act. Similarly, if the provident fund and pension benefits provided by the establishment are superior to those provided by the Employees Provident Fund Organization under the Employees Provident Fund and Miscellaneous Provisions Act, then the establishment shall obtain exemption from the coverage of EPF.

Regards,

Madhu.T.K

Dear Seniors,

First of all, Merry Christmas and wishing you a happy new year in advance.

Regarding the query, I am working in an MNC company where every employee's salary is above 15000/-, which means they are not eligible for ESI.

My question is: Do we need to submit half-yearly returns to the ESI Department?