Service Details

PF & ESI Registration

What is PF and ESI Registration?

ESI is known as Employee State Insurance is a scheme launched by the Government of India to offer medical, monetary, or other benefits to the workers. This insurance is administered by the Employee State Insurance Corporation which is an independent body created by the law under the Ministry of Labour and Employment, Government of India. This concept was begun by the Indian workers. Any company having more than 10 employees with a maximum salary of Rs. 21000/- has to mandatorily register itself with the Employee State Insurance Corporation(ESIC).
The Provident Fund (PF) is a retirement perk that is usable by every salaried employee. This reserve is managed and handled by the EPFO which is the Employees Provident Fund Organization of India. Contribution to the PF account is necessary for every employee receiving a basic salary up to INR 6500. it is just a savings way that allows every employee to set aside a fraction of their resources every month.
Employee Provident Fund(EPF) is one of the most widely used investment schemes by the salaried class. The advantages of PF are extended to all establishments with 20 or more employees.

Benefits of ESI (Employee State Insurance)

Medical benefit:- Full medical care is provided to all the persons who are registered under ESI and their family members from the day the person enters insurable employment. There is no expenditure on the treatment of an insured person or his family member. Medical care is given to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs 120/-.
  • Sickness benefit -
This benefit is at the rate of 70% in the form of salary, in the case of any certified illness and which lasts for a maximum of 91 days of any year.
  • Maternity benefits -
Maternity benefit for pregnancy/confinement is given for three months which is expandable by further one-month advice at the rate of full wage to contribution for 70 days in the preceding year.
  • Disablement benefit -
From the day of entering insurable employment and irrespective of having paid any contribution, 90% of wage is payable so long as the temporary disability continues. Permanent disablement benefit is payable at the rate of 90% of wages in the form of the monthly payment, in case of permanent disablement based on the extent of the loss of receiving the capacity as certified by the medical board.
  • Dependent benefit -
This benefit is paid at the rate of 90% of wages in the form of monthly payment to the dependent of a deceased insured person, in cases, death occurs due to employment injury or occupational hazards.

Benefits of PF (Provident Fund)

The employee’s provident fund scheme provides an array of benefits to the EPF employee members. It calculates a sense of financial stability and security in them.
  • Capital appreciation -
The PF online scheme offers a pre-fixed interest on the deposit that is detained with EPF India. Additionally, rewards extended at maturity further make sure the growth in the employee’s funds and accelerate capital appreciation.
  • Corpus for Retirement -
Around 8.33% of an employer’s contribution is directed towards the Employee Pension Scheme. In a long way, the sum deposited towards the employee provident fund helps to build a healthy retirement corpus. Such a corpus would extend a sense of financial security and independence to them after retirement.
  • Emergency Corpus -
Uncertainties are a part of life so being financially prepared to face such unwanted situations is the best an individual can do to deal with exigencies. A PF fund acts as an emergency corpus when an individual requires emergency funds.
  • Tax-saving -
Under the Section 80C of the Indian Income Tax Act, an employee’s contribution towards their PF account is deemed eligible for tax exemption. Therefore, earnings generated through the PF scheme are exempted from the taxes. Such exemption can be availed up to the limit of Rs. 1.5 Lakh.
The tax benefits are applicable to the Employees Provident Fund Scheme to make sure higher earnings to the members.
  • Easy premature withdrawal -
Members of PF India are entitled to avail of the benefits of partial withdrawal. Individuals can withdraw funds from their PF account to meet their specific requirements such as constructing a house, higher education, bearing wedding expenses, or availing medical treatment.

Documents required for PF/ESIC Registration:-

  • A registration certificate obtained like S&E Certificate, GST Certificate, IEC License etc.
  • Certificate of Registration in case of a company, and Partnership deed in case of a Partnership
  • Articles of Association and Memorandum of Association of the company
  • A list of all the employees working in the Establishment
  • PAN Card of the Business Entity and all the Employees working under the entity
  • The compensation details of all the employees
  • List of all the shareholders of the Company
  • List of Directors of the Company
  • A register containing the attendance of the employees with aadhar card and pan card

FAQs

Common Questions About Our Consulting Services

Who needs to register for PF and ESI?

Employers having 20 or more employees are required to register for both PF and ESI.

Contribution rates for PF and ESI are set by the government and are subject to change. Employers and employees contribute a certain percentage of the employee's salary to both PF and ESI funds.

Generally, all eligible employees must be covered under PF and ESI. However, certain categories of employees may be exempted based on specific criteria. Employers should check the rules and regulations for any exemptions.

In some cases, voluntary registration is allowed. Employers with less than 20 employees may choose to register voluntarily for PF and ESI.

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