Why PF & ESIC Compliances is essential for organization?
The Provident Fund (PF) and Employee State Insurance Corporation (ESIC) is a self-financing social security and health insurance scheme for all the employees working in an organisation. All the organizations, whether small and medium enterprises or those employer who are having 10 or more employee, strictly directed to adhere the PF & ESIC Compliances for the smooth running of their businesses.
Industries such as manufacturing, information technology, real estate, banking, finance and so on have to maintain the wages including PF & ESIC Compliances and labour laws to establish the balance among company and its workforce.
PF & ESIC Compliances estimation is a complicated mechanism
The calculation process of PF & ESIC includes many tough tasks like entering the details of the new inductees, updating leave records, submission and approval of timesheets for accurate computation, and dispensing off the salaries after making statutory of PF, ESI, PT, TDS and so on or by non-statutory deductions.
All in all according to ESI act of 1948 includes bonus, maternity benefits for women employees and events such as sickness, physical injury to the body during employment, disability and various associated matters that makes process complex. On the other hand, employees mostly in manufacturing companies work in extra hours to get overtime payment which again makes the calculation process difficult for employer.
Hiring a PF Consultant is a better option
Moreover, inhouse worker uses Microsoft Excel spreadsheets but still the complexity of formulas that are used in spreadsheet is not reduced. If there is 20 employees in an company and the CTC is in the range of 3 LPA to 5 LPA and it is obvious that the calculation of statutory deduction will be different for each of the employee since every employee have distinct CTC. Furthermore, if any person get hike or increment in their salary then again work of calculation get increased. These are tedious and time-taking exercise with the possibility of committing errors being high. What these organisations need is reliable PF Consultant from an reliable and trustworthy provider.
Convenience of outsourcing PF Consultant:
- Solutions around specific needs of clients.
- Enhances the overall profitability of the enterprise.
- An increase in focus on strategic business areas.
- A reduction in the labour overheads.
- Timely compliance and adherence to all the different statutes and labour compliances laws.
- Complete and accurate maintenance all records that are relevant to compliance.
- play an important role in the payroll processing.
- Responsible for the complex calculations involved in processing of PF & ESIC Compliances.
- Increase the efficiency and productivity of the organisation.