Services

Eligibility for ESI

ESI scheme applies to all types of establishments, including corporates, factories, restaurants, cinema theatres, offices, medical and other institutions. Such units are called Covered Units.

What are the criteria for Covered Units

• All units that are covered under Factory Act and Shops and Establishment act are eligible for ESI.
• Where 10 or more people are employed irrespective of their monthly earnings.

Eligible Employees

All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, and leave encashment) does not exceed Rs. 21,000 per month, are eligible to avail of benefits under the Scheme. Employees earning a daily average wage up to Rs.176 are exempted from ESIC contributions.
Salary components for ESI deductions
ESI contributions (from the employee and employer) are calculated on the employee’s gross monthly salary such as

• Basic pay,
• Dearness allowance,
• City compensatory allowance,
• House Rent Allowance (HRA),
• Incentives (including sales commissions),
• Attendance and overtime payments,
• Meal allowance,
• Uniform allowance and
• Any other special allowances.

The gross monthly salary, however, does not include an Annual bonus (such as a Diwali bonus), Retrenchment compensation, and Encashment of leave and gratuity.
ESI Calculations  as a percentage of gross wages paid to the employees
0.75% of the gross salary  of the Employee as a Deduction and 3.25% gross salary  of the Employer as a Deduction

Vantage Efilings Team helps organizations in 

• Obtaining ESI Registration
• Reminders for timely payment of ESI Contribution Preparation
• Filing of Periodical Returns as may be required under ESI Act / Rules
• Preparation & Maintenance of Statutory Registers & Records as required under the ESI Act / Rules
• Providing day-to-day consultancy on matters pertaining to ESI Act
• Assistance in preparation & submission of Certificate of Contribution whenever demanded by the appropriate office under the ESI Act

Employee Provident Fund (EPF)

Contributions to the Employee Provident Fund (EPF)- Employee and Employer

For EPF, both the employee and the employer contribute an equal amount of 12% of the monthly salary of the employee.
Employees can contribute more than 12% of their salary voluntarily, however, the employer is not bound to match the extra contribution of the employee.

The salary comprises of fewer components:

• Basic wages,
• Dearness Allowances (DA),
• Conveyance allowance and
• Special allowance.

The contributions by the employee and employer are divided into two separate funds:

• EPF (Employee Provident Fund) and
• EPS (Employee Pension Scheme).

Employee:  Employee Provident Fund (EPF): 12% of monthly salary, No  contribution to Employee Pension Scheme (EPS)
Employer:  12% of monthly salary (subject to a maximum of Rs 1,800). This consists of the Employee Pension Scheme (EPS) at 8.33% (of the 12%) and the Employee Provident Fund (EPF) at 3.67% (of the 12%).

Obtaining EPF Registration / EPF Code Number

 

 

 

 

 

Every registered business with Enrollment Certificate shall pay tax ( at present ) of Rs. 2500/- for  Companies and  Rs.1000/- for Partnership firm every year before 30th of April.

Penalty / Interest for Non Payment / Delay in payment of tax attracts Penalty  of Equal Amount of PT Payable and Interest at 1.25% for each month or part thereof

 

Professional Tax Employee Registration is a must for all the employers who employ people with salary or wages of Rs.15000 /- or more.

Monthly Return and Payment of Tax: An employer shall file a return within twenty days of the expiry of every month showing the salary and wages paid by him and the amount of tax deducted at the rate of Rs. 200/- per person by him in respect of employees during the preceding month.

Vantage Efilings Team helps organizations in