Employee Compensation - Does Not Want Benefit Of ESI And PF Facility

Dear Sir,

I have recently joined a kids' wear manufacturing sector where I have encountered a compensation-related issue. There is an employee who has been working here for three months. He receives his salary along with the benefits of ESI and PF facilities. However, he does not wish to avail of these benefits because he believes his earnings are too low to adequately support his family.

What should be the course of action in this situation?

Thank you.

Please furnish details of his gross salary for determining exclusion from ESI coverage. If gross salary is more than Rs21,000/- per month, he can be excluded from ESI coverage with effect from 01/04/2017.

Since he is already covered under EPF, he has to continue to contribute to EPF, with a maximum up to Rs15,000/- (Basic, DA, VDA) until he is in your employment.

Thanks for your help. However, his gross salary is below 10,000 per month. We have been providing him with ESI for the last 3 months as he joined 3 months ago. Now, he wishes to withdraw his name from ESI and PF benefits. Is there a rule that allows us to remove his name from ESI while still keeping him as our employee?

Mr. Chatterjee,

What position do you hold in the company? What do you mean by an employee's gross salary being below Rs 10,000 per month? Do you not know his exact salary? Instead of replying to your question, you are asking if there is any rule for removing his name. It appears that you have not understood the reply. Therefore, please share the information with a literate person for better understanding.

If he is covered under the ESI Act and EPFMP Act, then there is no escape no matter whether he wants to remain covered or not. It is, in fact, the liability of the company to pay such statutory dues if the company and the employee are covered under both Acts.