About PF & ESI
1. Q 1. What is PF and ESI?
Ans:- This document describes the rule for ESI and PF deduction where ESI is Employee
State
Q 2. Is ESI and PF mandatory?
Ans:- Registration for EPFO and ESIC shall be mandatory
for all new companies incorporated
with effect from February 23, 2020.
Q 3. Who is eligible for PF & ESI?
Ans:- All employees of a covered unit, whose
monthly incomes (excluding overtime, bonus,
leave encashment) does not exceed Rs. 21,000
per month.
Q 4. Who are not eligible for PF?
Ans:- If you are drawing a salary higher than Rs. 15,000 per month.
Q 5. What is the contribution for Provident Fund both by the employer and employee?
Ans:- The Employee contributes 12% of his/her
basic salary and the same amount is contributed
by the employer.
Q 6. How is PF Calculated in salary?
Ans:- The employee contributes 12% of his or her
basic salary along with
the dearness allowances every month to the EPF
account.
