Employee State Insurance (ESI) Registration & EPF - Employees' Provident Fund
What is Employee State Insurance Corporation
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family. Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through Bandhu e-Services. All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. ESI Registration can be done through Bandhu e-Services in Berhampur/Bhubaneswar, odsiha.
Advantages of ESI Registration
- It provides complete medical benefits
- It includes dependants
- It can be used at different ESI dispensaries and hospitals
- Any payments made will be reimbursed
- It takes the needs of the disabled into account
- Access to Medical care in ESI Dispensaries/Hospitals
Applicability of ESIC Registration
The following establishments employing 10 or more persons attracts ESI coverage :
- Shops
- Hotels or restaurants not having any manufacturing activity, but only providing service.
- Cinemas
- Roadside Motor Transport Establishments
- News paper establishments
- Private Educational Institutions and Medical Institutions
What is ESI Registration
It is a vast social security scheme designed to accomplish the task of providing social protection to the ’employees’ in the organised sector against the uncertain events of sickness, maternity, disablement and death due to injury sustained in the course of employment and to provide medical care to the insured employees and their dependents.
The scheme provides complete medical care to the employees registered under the scheme during the period of incapacity for recuperation of health and working capacity. It provides monetary assistance to compensate for the loss of wages during the period of absence from work due to sickness, maternity and employment injury. The scheme provides medical care to the employees’ dependents also.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.
Concerns Related to ESIC Registration
- The ESI scheme is a self-financing scheme from the contributions. The ESI funds are primarily built out of contribution from employers and employees monthly at a fixed percentage of wages paid. The State Governments also contributes 1/8th share of the cost of Medical Benefit.
- The following establishments employing 10 or more persons attracts ESI coverage :
- Shops
- Hotels or restaurants not having any manufacturing activity, but only providing service
- Cinemas
- Roadside Motor Transport Establishments
- News paper establishments
- Private Educational Institutions and Medical Institutions
In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.
- Any sum deducted from wages under the ESI Act will be deemed to have been entrusted to the employer by the employee for the purpose of paying the contribution for which it was deducted. Non-payment or delayed payment of the Employee’s contribution after being deducted from the wages of the employee amounts to ‘ Breach of trust’ and is a criminal offence punishable under Section 406 of IPC.
Steps for getting the Above license
Getting ESI Registration :
Establishmentsor Factoriesmust get themselves registered within 15 days of the Act becoming applicable to them by submitting an Employer’s Registration Form (Form-01) to the relevant Regional Office.
Obtaining Code Number :
A 17-digit identification number called the Code number will be provided which must be used in all Correspondence relating to the Scheme. Form 3 (Return on Declaration) must also be submitted along with Form 1.
For Employees :
At the time of joining the insurable employment, employees are required to fill in aDeclaration Form (Form1) and submit two copies of a family photo to the employer, which must be submitted to the relevant ESI Branch Office by his employer.
Insurance Number :
The employee will then be allotted an insurance number for the purpose of his identification under the scheme.
Temporary Identity Card :
The employees will also be issued a temporary identity card for availing medical benefit for him/herself and his/her family for a duration of three months.
Permanent Photo Identity Card :
Thereafter, he will be provided with a permanent photo identity card. A person once registered need not register again when there is a change of employment. The same registration can be transferred from one employment to another.
Our Packages
GST
registration
₹
39
99
Per Person
- 2 Days and 1 Night
- Breakfast and Dinner
- Free WiFi in Car
- Premium SUV
GST
registration
₹
79
99
Per Month
- Day Care Pickup
- Tuition Travel
- School Pickup
- Premium Car
Pet Travel
registration
₹
29
99
Per Pet
- Companion Travel
- Medical Facilities
- Monthly Commitment
- Pet Training Pickup
Documents Required For ESI
Documents
- 1. Id Proof (Aadhar, Pan, Voter Id)
- Copy of PAN Card
- Copy of bank statement
- Month wise employment position, salary etc.
Licence Procedure
Complete a Simple Form
You need to fill our Trade application form and provide details about your food business.
Send your Documents
You need to email us the required documents and we will create your Trade Form A and Form B.
Documents Submission
Your Trade License application along with other declarations are filed to the local FBO by our CS/ CA.
license Issued
We will mail you the license which will act as a Trade license, after regular follows ups with the food safety department.
EPF - Employees' Provident Fund
EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Act, 1952. The employee and employer each contribute 12% of the employee’s basic salary and dearness allowance towards EPF. Currently, the rate of interest on EPF deposits is 8.50% p.a.
EPFO (Employee Provident Fund Organization)
The Employees’ Provident Fund Organisation (EPFO) is a non-constitutional body that promotes employees to save funds for retirement. The organisation is governed by the Ministry of Labour and Employment, Government of India and was launched in 1951.
The schemes offered by the organisation cover Indian workers and international workers (from countries with whom the EPFO has signed bilateral agreements).
Objectives of EPFO
Given below are the main objectives of the EPFO:
- To ensure every employee has only one EPF account.
- Compliance must be facilitated easily.
- Make sure organisations follow all the rules and regulations set up by the EPFO on a regular basis.
- To ensure that online services are reliable and to make improvements in their facilities.
- For all member accounts to be accessed online easily.
- Claim settlements to be reduced from 20 days to 3 days.
- Promotion and encouragement of voluntary compliance.
Documents Required For EPF
Documents
- PAN Card copy of firm/company/society/trust
- Cancelled cheque (bearing preprinted name & a/c no)
- Partnership deed (In case of partnership)
- Certificate of Registration (In case of Proprietorship/ Partnership)
- Certificate of incorporation (In case of company/ society trust)
EPF Benefits
Given below are the benefits of the EPF scheme:
- It helps in saving money for the long run.
- There is no requirement to make a single, lump-sum investment. Deductions are made on a monthly basis from the employee’s salary and it helps in saving a huge amount of money over a long period.
- It can help an employee financially during an emergency.
- It helps in saving money at the time of retirement and helps an individual maintain a good lifestyle.
EPF Interest Rate
Currently, PF interest rate is 8.50%. It is possible to easily calculate the interest amount accumulated in the EPF account at the end of a financial year. This amount is added to the employer and employee contributions at the end of the year to find the total balance in the account.
EPF Eligibility
The eligibility criteria in order to join the EPF scheme are mentioned below:
- It is mandatory for salaried employees with an income of less than Rs.15,000 per month to register for an EPF account.
- As per law, it is mandatory for organisations to register for the EPF scheme if they have more than 20 employees working for them.
- Organisations with less than 20 employees can also join the EPF scheme on a voluntary basis.
- Employees who earn more than Rs.15,000 can also register for an EPF account; however, they must get approval from the Assistant PF Commissioner.
- The whole of India (except the states of Jammu and Kashmir) can benefit from the provisions in the EPF scheme.
How to Check EPF Balance?
There are four methods in which you can check your EPF balance:
- Using the EPFO portal – The process of checking your EPF balance through the EPFO member portal is easy. You should do EPF login using your UAN and password. After logging in, you will be able to find the EPF balance under the member ID.
- Using the UMANG app – You can download the Unified Mobile Application for New-age Governance (UMANG) app and perform EPF balance check on mobile phone. You can also raise and track claims through this app.
- Using a missed call service – It is possible to check your EPF balance by giving a missed call to the number, 011-22901406, from your registered phone number.
- Using an SMS service – If your UAN is activated, you can send an SMS to 7738299899 for EPF balance check.
EPFO KYC
Employees can update the KYC details on the e-Sewa portal of EPFO website.
- After logging in to the UAN EPFO portal, they will have to access the manage KYC option and select the type of document they are updating on the portal, i.e., PAN, Aadhaar, Ration Card, etc.
- The document number and name of the member (as per the document) will have to be updated.
- The expiry date of some of the documents may have to be updated as well.
- Once this is completed, the changes can be saved and submitted.
- The employer will then assess the details submitted and provide an approval.
- The employee then receives an SMS confirming the employer’s approval.
Any Query
FAQs FOR EPF
No, the employers cannot reduce their share of EPF contribution. Such a reduction is considered as a criminal offence.
The contribution amount is calculated by the salary that is paid in a calendar month.
No, it is not possible for an employee to contribute towards EPF if he/she has left the service. The employee’s and employer’s contribution must match.
The employee must approach the employer first. If not provided by the employer, he/she can approach the Regional Provident Fund Commissioner of the PF office.
No, there is no age restriction for an employee to become a member of the Provident Fund. However, if the employee has already crossed the age of 58 years, he/she cannot become a member of the Pension Fund.
No, an apprentice cannot become a member of the EPF, but he/she must enroll for EPF as soon as they stop being an apprentice.
No, an employee cannot join EPF directly. He/she must work for an organisation that is covered under the EPF & MF Act, 1952.
No, an employee cannot join EPF directly. He/she must work for an organisation that is covered under the EPF & MF Act, 1952.
No, an eligible member cannot opt out of EPF.
Prosecution under Section 14 of the EPF & MP Act, 1952, realisation of dues from debtors, attachments of bank accounts, attachment and sale of properties, and detention and arrest of the employer are some of the ways the PF amount is recovered from employers.