EPF Registration

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation (ESIC) which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

The ESI scheme was started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits under the ESI Act from the contributions made by both the employer and employee towards the ESI scheme.

ESIC Registration Eligibility

Any non-seasonal factory or establishment having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC within 15 days from the date of its applicability.

Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.

Employee Provident Fund Registration is a mandatory requirement for all organisations that have more than 20 employees. Under respective guidelines, organisations have to comply with these requirements.

Why is It Important for an Employer to Register for EPF?

Since TDS is deducted from employees’ salaries, EPF registration is a critical process for employers. Furthermore, they would be required to process remittances only after employers generated challans through the EPFO employer portal. As a result, they must go through this procedure.

• Risk coverage: The Provident Fund’s most fundamental benefit is to cover the risks that employees and their dependents may face as a result of retirement, illness, or death.
• Uniform account: One of the most important aspects of the Provident Fund account is that it is consistent and transferable. It is transferable to any other place of employment.
• Employee Deposit Linked Insurance Scheme (EDLIS): This scheme is available to all PF account holders. According to it, the life insurance premium is deducted at the rate of 0.5 per cent of the salary.
• Long-term goals: Many long-term goals, such as marriage or higher education, necessitate the immediate availability of funds. During such times, the accumulated PF amount is frequently useful.
• Emergency needs: Certain unanticipated events, such as marriage or other family gatherings, as well as any mishap or illness, necessitate immediate financial assistance. The PF amount can be extremely beneficial.
• Pension coverage: Aside from the employee’s 12% contribution to EPF, the employer contributes an equal amount, which includes 8.33% to the Employee Pension Scheme (EPS).
• EPF registration is mandatory for all establishments-
• Which is a factory engaged in any industry having 20 or more persons.
• To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.