EPF & ESI

ABOUT PF REGISTRATION

Concept 

The Employee Provident Fund is a perk given by the employer to their employees over and above their basic remuneration.

Requirement

Provident Fund Registration has mandatorily required by any establishment have employees 20 or more. 

PF Returns

Every establishment register under PF requires the filing of monthly returns on 25th of every month and annual return before 30th April.

Universal Account Number

Every employee who is contributing to EPF is allotted a 12-digit UAN which allows portability of PF accounts from one employer to another.

Monthly Deduction

12% of Basic Salary + DA shall be deducted on monthly basis of the employee as his contribution towards the Employee Provident Fund.

80C Deduction

Contribution towards EPF is eligible for deduction under section 80C which reduce tax implication of employee under income tax on salary.

BENEFITS OF PF REGISTRATION

• Risk coverage: The most fundamental benefit of the Provident Fund is to cover the risks employees and their dependents that may arise due to retirement, an illness or their demise.
• Uniform account: One of the most important aspects of the Provident Fund account that it's steady and transferable. It can be carried forward to any other place of employment.
• Employee Deposit Linked Insurance Scheme: This scheme is for all the PF account holders. According to it, 0.5% of the salary is deducted from the life insurance premium.
• Long-term goals: There are many long-term goals such as Marriage or higher education that require the urgent availability of funds. The accumulated PF amount often comes handy during such occasions.
• Emergency needs: There are certain unanticipated occasions like marriage or other family occasions, any mishappening or illness that requires urgent finance. The PF amount can be of great help.
• Covers pension: Apart from the employee’s 12% contribution towards EPF, an equal amount is contributed by the employer, which includes 8.33% towards Employee Pension Scheme (EPS).

ABOUT ESI REGISTRATION

Concept

Employees' State Insurance also known as ESI is a kind of social security & health insurance perk given to employees.

Authorised Body 

This scheme is governed by the Employees' State Insurance Corporation and implemented as per the ESI Act 1948.

Applicability

Any factory or business establishment having 10 or more employees have to register under ESIC.

Amount contributed

For all the employees who are entitled to get the Employees'  State Insurance benefits, total of 6.5% amount is deducted towards ESI.

Monthly Return 

An establishment requires the filing of ESI return on half yearly basis i.e. 11th May and 11th November of every year.  

Tax Payment

An establishment requires paying ESI contribution of an employer as well as of employee on 15th of every month.

BENEFITS OF ESI REGISTRATION

Social security: ESI registration is one of the most reliable schemes run by Government of India that covers all risks of the employees working in the organised sector.

More contribution from employer: A total of 6.5% amount goes towards ESI, out of which only 1.75% of the employee’s salary, rest is contributed by employer.

Government schemes under Union Budget: Recently, the government has introduced several avenues for healthcare for the poor families covered NHPS, Such as getting benefits under ESI run hospitals and dispensaries. 

Pehchan smart cards: The ESIC also gives Pehchan smart cards to the ESI members that enable the insured people and their families to access all ESI dispensaries, hospitals or branches of ESIC across India and avail the subsidised facilities and services.

DOCUMENTS REQUIRED FOR PF/ESI REGISTRATION

• PAN CARD
• ADHAAR CARD
• PASSPORT SIZE PHOTO
• BANK ACCOUNT DETAILS PREPRINTED CANCELLED CHEQUE
• DIGITAL SIGNATURE