Yes you need to follow the PF provisions for your shop employees also
Provident fund & family pension & esic
Hi I have a registered partnership firm named in M/s XYZ INDUSTRIES carrying out manufacturing of XXX products with valid license in Factory Act. I regularly pay all dues like PF / FPF & ESIC for all my employees engaged in manufacturing unit. I also have a shop act license for the same firm named in M/s. XYZ INDUSTRIES carrying out trading of XXX products with valid license in Shop Act. The shop is situated in city whereas the manufacturing is almost 8 km away from city in rural area. The books for both are maintained separately and income / expenses are also separate and the balance sheet show 2 sets one of manufacturing and other of shop and finally consolidated figures also. My question is, are my shop employees also covered with PF ACT ? am I also supposed to deduct PF / FPF / ESIC for the employees of shop also ? as both share the common name / GST no. / PAN. Please provide guidance along with citations if any for both yes / no option.
Asked 5 years ago in Labour
11 Answers
If you have 10 or more employee than ESI and/or 20 or more employee working in the shop than PF is mandatory.
10 - ESI
20 - PF
This is single unit, your partnership is only registered in shop act with same GST no. / PAN, therefore employees working in shop and manufacturing are same and working under same organization.
deduct PF / FPF / ESIC -- YES
eligibility criteria
If you have a salaried employee with a Basic + Dearness Allowance less than Rs.15,000 per month, it is mandatory for you to be opened an EPF account by your employer. Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily. If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner
If there are more than 20 employees working in your shop and all are withdrawing salary above 15,000/- pm than its compulsory to open EPF account.
If no . of employees in your shop exceeded 20 then you have to apply for PF,EPF and ESIC to competent authorities under respective regulations and procedures of law.The officers from respective departments would visit your shop and prepare the report whether no of employees are more than 20 or less than 20 in your shop.
If No of employees are more than 20 they would issue you distinctive registration no for the payment of contributions to Government Treasury.
Any factory or establishment having 20 or more employees directly or through contract is liable to be covered under this act. The PF contribution is calculated on the basic wages and the dearness allowance. ... The employer contribution is calculated at 3.67% of wage in general prescribed by the Central government.
Employees whose monthly wages are Rs 21,000 or below are covered under the ESI Act. The wage limit for coverage under the Act had been increased from Rs 15,000 per month to Rs 21,000 in December 2016
Guidelines for Registration of Factory/Establishment under the ESI Act 1948. “The ESI Act, 1948 is applicable to all factories and notified establishments in an implemented area employing 10 or more employees employed for wages.”
ESI Registration is mandatory for employers having 10 or more employees. For all employees earning Rs. 15,000 or less per month as wages, the employer must contribute 4.75% and the employee must contribute 1.75% towards ESI. ... Those entities having ESI Registration must then file ESI returns.
- As per rule , any organisation employing a minimum of 20 workers is liable to give EPF benefits to the workers.
- Further , any organisation where 10 or more employees are working esi is mandatory for all the employees whose income is Rs. 15,000 or less per month as wages, , and the contribution of the employer must be 4.75% and the employee must contribute 1.75%.
- Hence, if your shops employees are also covered with the Act, if the numbers are as given above , even having common name , GST and PAN .
Yes employees of your shop should also be covered under PF act because of common GST registration and PAN.
Dear Sir/Madam,
Since you have one unit with different establishments of shop and manufacturing, all the employees of both the establishments are covered under PF, FPF, ESIC, etc. Hence you are suggested to do the needful in this regard.
- As per the information mentioned in the present query, makes it clear that there has been one name under which two different category of work is been done but for the same product.
- I would like to apprise you that your employee may come under the PF act the number of employees for sure would have increased from the required statute numbers.
- You should change your trading shop name and get it registered to some other name and then you can save you coming under PF act etc.
You have a different business as it performs different activities wherein one manufactures and the other sells the product. Employees are different and hence you should pay them the dues. They are entitled to it.
