About Startup Recognition (DPIIT)

Employee Provident Fund (EPF) is the retirement benefits scheme where both employer and the employee give a contribution in equal proportion and deposit the same in the EPF account of the member vide monthly return filling.

Employees' State Insurance Corporation (ESIC) dispenses the benefits of availing social security and provide health insurance scheme to workers. It is managed by the Employees' State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.

Registration Under Five central Labour Act viz. EPF/ESI/CLRA/BOCW/ISMW is being provided under 'Ease of Doing Business' initiative of Government of India available online now on Shram Suvidha Portal.

  • (1) The Employees Provident Funds And Miscellaneous Provision's Act (EPF) Act-1952.
  • (2) Employees' State Insurance Act (ESI) ACT-1948.
  • (3) Contract Labour (Regulation and Abolition) Act-1970.
  • (4) Building and Other Construction Workers (BOCW) Act -1996.
  • (5) Inter-State Migrant Workmen (ISMW) Act-1979.

License: (1) CLRA Act (2) ISMW Act

You can register your establishment under these Acts.

We at Compliance Calendar LLP can help you in ESI-PF Registration with end to end facilities including necessary consultation and also come to rescue when it is about compliance of the same. For any queries, reach us at info@ccoffice.in or WhatsApp/Call us at 9988424211.

HERE'S A LOOK AT THE BENEFITS OF HAVING A ESIC:

MEDICAL BENEFIT

Full medical care is provided to all persons registered under ESI and their family members – from the day the person enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses.

SICKNESS BENEFIT

Sickness benefit is provided in the form of cash compensation. Workers suffering from malignant and long-term diseases can claim extended sickness benefit for upto two years at an enhanced rate of 80% of wages. Also, enhanced sickness benefit equal to full wage is payable to insured persons undergoing sterilization for 7 days/14 days for male and female workers respectively.

MATERNITY BENEFIT

Maternity benefit for confinement/pregnancy is provided for three months, which is extendable by further one month on medical advice at the rate of full wage subject 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 temporary disability continues. Permanent disablement benefit is payable at the rate of 90% of wage in the form of monthly payment, in case of permanent disablement based on the extent of loss of earning capacity as certified by a Medical Board.

DEPENDANT BENEFIT

Dependant benefit is paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased insured person, in cases death occurs due to employment injury or occupational hazards.

FUNERAL EXPENSES

An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.

UNEMPLOYMENT ALLOWANCE

Under the Rajiv Gandhi Shramik Kalyan Yojana, unemployment allowance is payable to an insured Person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment or permanent invalidity. The applicable unemployment allowances provided are: Unemployment Allowance equal to 50% of wage for a maximum period of upto one year. Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives unemployment allowance.

VOCATIONAL TRAINING

It is provided for upgrading skills – Expenditure on fee/travelling allowance borne by ESIC.

SOME OF THE KEY BENEFITS OF EPF REGISTRATION

TAX BENEFITS

Apart from the fact that an employee's contribution towards an EPF account is eligible for tax exemption under Section 80C, the interest rate earned is also exempt from income tax. Saving the income tax is the most important benefits under EPF account. Your EPF account continues to earn interest even if it has been lying dormant for more than 3 years. Also, EPF withdrawals are not taxable after five years of continuous service, unless the employer terminates his/her business or the employee voluntarily quits his/her job.

LIFELONG PENSION

Having an EPF registration gives the benefits of having an income source of lifelong pension which can help at the elderly age of people when they are no longer physically fit to work and meet the ends of their survival. While employers and employees both contribute 12% of wages in EPF, 8.33% of the employer's share is diverted towards the Employees' Pension Scheme (EPS). According to the retirement fund body, 10 years of contributory membership ensures lifelong pension under Employees' Pension Scheme 1995.

INSURANCE BENEFIT

Employees Deposit Linked Insurance (EDLI) Scheme, which is an insurance cover is provided by the EPFO. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service. Recently, EPFO has enhanced the minimum assurance limit under this scheme to Rs 2.5 lakh, up from Rs 1.5 lakh previously. The maximum assurance benefit is capped at Rs 6 lakh.

PREMATURE WITHDRAWAL OPTION.

While EPFO strongly advises against treating PF money as a bank account - after all, the social security benefits accrue only when continuity is maintained - the body allows its members to make partial withdrawals after 5-10 years of service for meeting specific needs including medical treatment, home loan repayment and unemployment.

HIGHER RETURNS

That's not all. There is also the possibility of higher returns on your PF kitty in the future. The EPFO invests 5-15% of its investible deposits in exchange traded funds (ETFs). However, the ETF investments do not reflect in members' account and they do not have an option to increase the proportion of their retirement savings to be invested into stocks. Furthermore, 45-50% of the PF kitty has to be invested in government securities, 35-45 per cent in debt instruments and 5% each in money market instruments and infrastructure trusts. That is why the annual return on PF savings is much lower than that offered by NPS, which offers more aggressive investing options.

However, the EPFO has been working on a software that would help show retirement savings in cash and ETF components separately. The next big leap from there would be to give members an option to increase or decrease investments in stocks as per individual risk appetite. In fact, the EPFO's apex decision making body, the Central Board of Trustees, has already suggested exploring such possibilities. Hence, good things could be in store for subscribers in the year ahead.

Eligibility

When an organization grows at certain level, it has to register for ESI (Employee’s State Insurance) and PF (Provident Fund). ESI and EPF Registration are mandatory for all the organizations and corporations that employ more than 10 and 20 individuals respectively. Even your organization is not falling within the purview of the same, they too can have registration voluntarily with minimum strength themselves.

At any point If an organization grows to the strength of a minimum of threshold of 10 or 20 members, then have to register themselves in one month of getting the minimum workers.

Documentation

  • Organization KYC including PAN and contact details
  • Details of Primary Manager, Owner and Authorised Signatory like Name, Father Name, D.O.B, Designation, Address Proof, Pan Card, Contact number and E-mail id
  • Copy of GST Registration and Bank Statement
  • Declaration form of each and every employee
  • Number of Employees as on date of application
  • Number of Excluded Employees as on date of application
  • Date on which the Employment Strength reached 10/20
  • No of Employees drawing wages Rs. 21,000 or less
  • First date on which 10/20 or more persons were employed
  • Ownership details, if hired or owned with supporting proof
  • Date of agreement and any subsequent date for voluntary coverage
  • Specimen Signature Card to be submitted at final application

Procedures

  • The Ministry of Corporate Affairs which is popularly known as MCA has recently made amendments in the Company Incorporation Process by introducing Spice+ eForm in which the Companies shall take the ESIC and EPF registration.
  • The Online Registration and Licensing facility on Shram Suvidha Portal is developed to facilitate Establishments, Contractors, Employers or Principal Employers to submit application for Registration/License under Labour Laws Online i.e, CLRA Act, EPF Act, ESI Act, BOCW Act, ISMW Act etc.
  • Shram Suvidha Portal which is the official portal of Ministry of Labour and Employment, Government of India has come up with the objective of single window access for Registration or Licensing related services of Employers/Establishments and other stakeholders.
  • At Compliance Calendar LLP, we do have Labour Law Professionals who can help you with the registration as well as compliance part of the ESI-PF Laws with hassle free service. We have been serving with the help of Professionals who are working for us for more than a decade time.

Frequently Asked Questions

We have compiled all the Frequently Asked Questions already. Check out the same and if you have any questions, feel free to contact us at info@ccoffice.in or 9988424211 through call or WhatsApp.

Employee Provident Fund (EPF) is the retirement benefits scheme where both employer and the employee give a contribution in equal proportion and deposit the same in the EPF account of the member vide monthly return filling. On the other hand, Employees' State Insurance Corporation (ESIC) dispenses the benefits of availing social security and provide health insurance scheme to workers. It is managed by the Employees' State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.

No, you have to take it only after reaching 10/20 threshold. At any point If an organization grows to the strength of a minimum of threshold of 10 or 20 members, then have to register themselves in one month of getting the minimum workers. Check our Eligibility section for more information.

Yes, after registration under ESIC and EPF, your organisation is required to comply with the provisions of ESIC and EPF Law on time including returns, a deposit of monthly contribution online, maintenance of other books and accounts as required, updating the changes if any relating to business activity, ownership, management, etc. with the Govt.

Employer’s Contribution: 4.75% of the wages payable to employees. Reduced upto 3.25% with effect from 01.07.2019. Employee’s Contribution: 1.75% of the wages payable to employees. Reduced upto 0.75% with effect from 01.07.2019

The ESI and EPF scheme works on the principle of self-financing scheme. The funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages paid and later distributed to employees at various occasions.

Employees whose monthly wages are Rs 21,000 or below are covered under the ESI Act. Earlier this limit was 15000 but it had been increased from Rs 15,000 per month to Rs 21,000 in December 2016. As per ESIC Act, all non-seasonal factories employing 10 or more employees where monthly wages of employees doesn’t exceed INR 21000 per month (INR 25000 per month in case of employee with disability) are required to get themselves registered under ESIC Act.

All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. 21,000 per month, are eligible to avail benefits under the Scheme. Employees earning daily average wage up to Rs. 176 are exempted from ESIC contribution.

ESI or penchant application form needs to be downloaded from the ESIC portal by the employer, and the details of the employee need to be filled. The employee then needs to submit a copy of this form with the family photograph and the dependants’ photographs duly attested. The ESIC office, after all the relevant checks, issues an ESI card to the employee. ESIC Card can also be downloaded online from www.esic.in portal. Post login at ESIC portal by employer, option can be seen to download EISC Card of employees.

ESI is a premium paid for medical benefits. If no benefit is obtained from it, there is no option available to withdraw amount from ESI Account.

We can help you with end to end services in ESIC/EPF Registration. It is a legal process so it is prudent to assign the work to a professionally managed firm.

Not to worry at all! Someone from our experienced team will resolve all your queries. Our Labour Law Experts will help you to give you the best advice without any consultancy fees. Get in touch with us. Write to us at info@ccoffice.in or WhatsApp/Call us +91 9988424211.

Get A Quote

If you have decided to proceed further for ESIC/EPF Registration or have any queries, you can get in touch with us through below fields and let CCL Team get back to you within 24 hours.

Compliance Calendar LLP has a team of Labour Law Professionals who can help you in ESIC/EPF Registration as well as its compliance. Talk to us to know how we can be partner in your business growth and work in synergy to help you be stress free from labour law compliance.