PF & ESI Registration
PF & ESI stands for Provident Fund and Employee State Insurance which is a scheme launched by the Government of India to offer medical, monetary, and other benefits to workers. Currently any factor or employment or any establishment that has employed over 10 employees with a minimum salary of Rs. 21,000 has to mandatorily register itself with the ESIC. It is regulated by the Employee State Insurance Corporation which is an autonomous body under the Ministry of Labour and Employment, Government of India.
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The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.
EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.
ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.
- Any organization or factory with 20 employees or more needs to get themselves registered under EPF Scheme.
- Establishment with less than 20 employees may get themselves registered voluntarily.
- Employees of an organization, which are already registered under EPF Scheme, are directly eligible for getting their Provident Fund account opened from date of their joining.
- Liability to deduct and deposit EPF arises for all employees with basic wages of Less than INR 15,000 per month,
- All organisations which are listed under Factories Act and Shops and Establishments Act.
- Factories and establishments with atleast 10 employees have to register themselves under ESI schemes.
- Employees earning gross wages not exceeding INR 21000/- per month will be covered to check requirement of ESI registration.
- Nearly 8.5% of the employer’s contribution is rendered to the employee pension scheme which would assist in creating good amount for retirement of employees.
- The PF scheme provides a pre-fixed interest on the deposit secured within EPF India
- Earnings made from the EPF are exempt from tax subject to certain conditions.
- The employee can withdraw the amount from the EPF fund during an emergency
- Medical benefits to the employee and his family members.
- Sickness advantages a 70% rate in a salary form if any certified illness exists for a maximum of 91 days in any year.
- Employee’s death during his working period, 90% of the salary is provided to his dependents in the form of the monthly payment post to the employee’s death.
- The maternity advantage to the women who are pregnant is in the form of paid leaves.
- Funeral expenses.
- Identical to the above for the case of the employee’s disability.
- Old age medical care expenses.
List of Documents Required
- Copy of registration certificate or licenses in name of company.
- PAN Card of the Business Entity as well as all the Employees working under the entity.
- Number of Employees and their details
- Primary Business Type of entity.
- A Specimen of Signature.
- Digital Signature.
- Scanned copy of cancelled Cheque.
- Proof of Address of business entity.
- Licence Proof like GST Registration
- Lease deed if Hired/Rented/leased
Firstly, one account needs to be created in the name of applicant on portal.
Then click on the tab ‘Under EPF-ESIC Registration’ on right side.
An application for registration will open and after fill all necessary details submit the application.
Application can be submitted by DSC or e-signing.
Registration mail along with your Login Credentials will be sent on your registered Mail-ID.
Employee’s contribution: A sum equal to 1.75% of the wages payable to an employee, rounded to the next higher rupee;
|Submission of PAN||Non submission of PAN||No TDS deducted in case of|
|If 15G/15H is submitted, no TDS is deducted
If 15G/15H is not submitted, TDS deducted at 10%
|TDS is deducted at Maximum Marginal Rate (34.606%)||Transfer of Fund
Payment of advance
Service is terminated by employer beyond control of employee