Hi All,
I just want to know that PF and ESi is an option or complusory for everyone because one employee getting monthly salary 18k. company also deduct cab charges from the salary . but if PF and ESI also deduct from salary then take home salary will be very less to survive so can employee ask employer to not deduct the PF and ESI if he dont want these benefits.
Thanks
Priyanka
From India, Delhi
1I just want to know that PF and ESi is an option or complusory for everyone because one employee getting monthly salary 18k. company also deduct cab charges from the salary . but if PF and ESI also deduct from salary then take home salary will be very less to survive so can employee ask employer to not deduct the PF and ESI if he dont want these benefits.
Thanks
Priyanka
From India, Delhi
hi all,
pls clarify the my question.for example.employee gross salary is 3496+3345=6841 gross salary , if employee 31 days present including weekly offs. so employe get salary 6841 pf 820 esic120 = 940 6841-940=5901 take home . i am a right.
now am pf challan generate so which wage part can i take and also esic also gross amount
i want know which amount can take eg 6500*12%=780 is correct or 6841*12% =820 is correct.pls clarify the doubt
From India, Bangalore
pls clarify the my question.for example.employee gross salary is 3496+3345=6841 gross salary , if employee 31 days present including weekly offs. so employe get salary 6841 pf 820 esic120 = 940 6841-940=5901 take home . i am a right.
now am pf challan generate so which wage part can i take and also esic also gross amount
i want know which amount can take eg 6500*12%=780 is correct or 6841*12% =820 is correct.pls clarify the doubt
From India, Bangalore
Hello Priyanka,
As per the govt. laws, it is compulsory to deduct ESIC for the employees whose salary is below 15000/-pm though this limit may vary state to state. I am not sure if it's optional or completely discontinued for salary above 15K that but it's definitely not mandatory to be deducted above that limit. You mentioned that your salary is 18000/-pm so you can definitely opt out of it.
For EPF, it is also to be deducted from the salary but if it's being deducted from your salary for the first time ever in your professional career, employees do have an option to opt out of it. If ever in past experiences/ company's your PF has been deducted then it's mandatory for the employer to deduct the PF from employees salary irrespective of their choice.
I hope this information would suffice. Anything else please feel free to get in touch.
From India, Chandigarh
As per the govt. laws, it is compulsory to deduct ESIC for the employees whose salary is below 15000/-pm though this limit may vary state to state. I am not sure if it's optional or completely discontinued for salary above 15K that but it's definitely not mandatory to be deducted above that limit. You mentioned that your salary is 18000/-pm so you can definitely opt out of it.
For EPF, it is also to be deducted from the salary but if it's being deducted from your salary for the first time ever in your professional career, employees do have an option to opt out of it. If ever in past experiences/ company's your PF has been deducted then it's mandatory for the employer to deduct the PF from employees salary irrespective of their choice.
I hope this information would suffice. Anything else please feel free to get in touch.
From India, Chandigarh
Thanks Axita, Is there something limit of basic salary actually this is the total salary, basic wold be the less 40 or 50% of total then same is applicable if basic is less.
From India, Delhi
From India, Delhi
Anxita, Being an HR exe do not carry the idea that ,Rs 15000/- limit for ESI may vary from state to state. Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Priyanka,
There's nothing to do with the basic salary for deciding the deductions for EPF & ESIC though basic does play role once you're applicable for deductions.
So in all, as per the information provided by you, ESIC would not be applicable to you & EPF, yes if your PF has ever been deducted in your professional career & it would be your choice to get the PF deducted or not if you are getting coming under PF for the first time. The employer's need to get a form signed by you mentioning that you do not want to get your PF dedcuted.
But personally, if I may suggest you must get the PF deducted as it's a kind of FD & you get a good interest on that.
From India, Chandigarh
There's nothing to do with the basic salary for deciding the deductions for EPF & ESIC though basic does play role once you're applicable for deductions.
So in all, as per the information provided by you, ESIC would not be applicable to you & EPF, yes if your PF has ever been deducted in your professional career & it would be your choice to get the PF deducted or not if you are getting coming under PF for the first time. The employer's need to get a form signed by you mentioning that you do not want to get your PF dedcuted.
But personally, if I may suggest you must get the PF deducted as it's a kind of FD & you get a good interest on that.
From India, Chandigarh
Dear Varghese,
I am sorry but I could not understand what you wanted to convey. Still making myself clear, ESIC may vary from state to state but as per my knowledge the limit is 15000/-pm & that's the reason I have mentioned the same.
If you've any further updates on it I'm open to gather the knowledge.
From India, Chandigarh
I am sorry but I could not understand what you wanted to convey. Still making myself clear, ESIC may vary from state to state but as per my knowledge the limit is 15000/-pm & that's the reason I have mentioned the same.
If you've any further updates on it I'm open to gather the knowledge.
From India, Chandigarh
Dear Priyanka,
Please understand that though PF and ES I are statutory deductions, they are calculated from different parts of Salary. PF is calculated from Basic+D.A whereas ESI is calculated from Gross.
If one satisfies below conditions simultaneously, then he/she is exempted from PF deductions(of course by filling form no. 11)
1. If Basic+D.A is more than 6500.
2. PF was never deducted from the employee prior to the present job.
Similarly, if your Gross is less than 15000/- pm then esi deduction is applicable else not.
Regards,
Ramya Ranjan
From India, Bhubaneswar
Please understand that though PF and ES I are statutory deductions, they are calculated from different parts of Salary. PF is calculated from Basic+D.A whereas ESI is calculated from Gross.
If one satisfies below conditions simultaneously, then he/she is exempted from PF deductions(of course by filling form no. 11)
1. If Basic+D.A is more than 6500.
2. PF was never deducted from the employee prior to the present job.
Similarly, if your Gross is less than 15000/- pm then esi deduction is applicable else not.
Regards,
Ramya Ranjan
From India, Bhubaneswar
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls