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ESI & EPF

EPF or PF is an arrangement made by the government and managed by Employees’ Provident Fund Organization(EPFO) which is covered under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The EPF organization is controlled by Ministry of Labour and Employment, Government of India. The Act was framed to provide the benefits to salaried class employees. Under this act, the employees are entitled to receive a pension, insurance or special benefits at specific occasions by contributing a nominal amount towards this fund. The contribution is being deposited from applicable for both employee and employer.

ESI Registration

ESI Registration is applicable to the establishments which in an implemented area and having more than 10 employees. Once, the organization gets registered, a 17 digit unique identification code will be allotted to them. It is the statutory responsibility of the employer to get registered under this act after achieving the said employee level within 15 days.

ESI Benefits Provides complete medical assistance to the employee. It also includes dependents. These benefits can be availed at different ESI dispensaries, clinics and hospitals. Any payment made at hospital is completely reimbursable.

EPF Registration Procedure

The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:

Name of the establishment

Address
Incorporation Date
PAN
Type of establishment
First Sale Invoice Copy

If the establishment is a factory then the following details must be provided:

Factory License Number
Date of License
Place of issue

ESI Contribution

ESIC contribution is must to be made by the employer for all employees drawing a monthly gross salary of up to Rs.21,000 per month. The employer contribution is 3.25% and employee contribution is 0.75% of the wages. The total contribution made towards ESI Fund will be 4.00% of total monthly gross.

PF Benefits

Earlier this registration was being done manually by visiting the organization. But now it can be easily done online. An important investment plan for future needs has been made mandatory by the government for the employees drawing a basic salary less than Rs. 15000/-. The fund accumulated would be tax-free and if withdrawal is being made after 5 years of registration then the maturity amount with interest will also be treated as the tax-free income. The contribution also helps employees by facilitating to withdrawal partial amount for expenses like house construction, daughter’s wedding, in the case of critical illness, higher education etc. Thus, it is very important to contribute towards this fund for both employer and employee.

PF Contribution

12% of Basic Salary of Employee deposited directly towards EPF
12% of Employer contribution is divided as-
1) 8.33% of contribution towards Employees’ Pension Scheme
2) 3.67% of contribution towards Employees’ Provident Fund
3) 1.0% of contribution towards EPF Administration Charges (After 01/04/2018 0.50% )
4) 0.5% of contribution towards Employees’ Deposit Linked Insurance ( minimum RS. 500/-)
5) 0.01% of contribution towards EDLI Administration Charges( After01/04/2017 RS. 0/-)

Required Document List

Documents Required for ESIC Registration

Registration certificate as obtained under – Factories Act and Shops and Establishment Act
Certificate of registration in case of a company and partnership deed for a partnership firm
List of all employees working in the establishment along with employee details such as name, father’s name, mobile number, monthly gross, etc.
PAN card of the business establishment
Scanned copy of the licenses received by the company such as GST
Digital signature of the proprietor, partner or director as the case may be Directors’ list
Address proof of the proprietor, partner or the company directors as the case may be
Mobile number and email id of proprietor, partner or director of the company as the case may be.

ESI Registration

EPF Registration Procedure

ESI Contribution

PF Benefits

PF Contribution

Required Document List

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