ESI / PF Consultancy

ESI (Employee State Insurance) and PF (Provident Fund) are social security schemes mandated by the Indian government for employees in various sectors. 

ESI (Employee State Insurance) and PF (Provident Fund) are social security schemes in India. ESI provides medical and cash benefits to employees and their dependents, while PF is a retirement savings scheme.

An ESI/PF consultancy assists businesses in complying with ESI and PF regulations. This includes registration, monthly contributions, filing returns, resolving disputes, and ensuring compliance with changing regulations.

ESI and PF compliance ensures that employees receive social security benefits and that businesses avoid penalties for non-compliance. It also enhances employee satisfaction and retention.
An ESI/PF consultancy offers services such as ESI and PF registration, calculation of monthly contributions, preparation and filing of returns, handling inspections, resolving disputes, and providing advisory services.

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 basic wages/salary of Rs. 21,000 per month (Rs.25,000 per month in the case of persons with disability) are covered under the ESI scheme and thus, they have to mandatorily register with the ESIC within 15 days from the date of its applicability.

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

ESIC Registration Process Online

Step 1: Log in to the ESIC Portal
Step 2: Confirmation Mail
Step 3: Employer Registration Form-1
Step 4: Payment for Registration
Step 5: Registration Letter

Documents Required for ESIC Registration

Since the procedure for registration is online, no physical documents are required to be submitted. The documents required while filling out the online registration form are:

• Registration Certificate obtained either under the:
• Factories Act, orShops and Establishment Act.
• Certificate of incorporation of the establishment, which are as follows:
• Certificate of Company Registration in case of a company.
• Partnership deed in case of a partnership firm.GST certificate of the establishment.
• Memorandum of Association and Articles of Association of the company.
• Address proof of the establishment.
• Any one of the following can be submitted as address proof: Utility bills (Electricity bill, gas connection bill or telephone bill of the establishment not exceeding three months)
• Rental agreement of the land on which the establishment is situatedProperty tax receipts of the land on which the establishment is situated
• A list of all the employees working in the establishment.
• PAN Card of the business establishment as well as all the employees working in the establishment.
• The compensation details of all the employees.
• A cancelled cheque from the bank account of the company.
• List of directors of the company.
• List of the shareholders of the company.
• A register containing the attendance of the employees.

EPF

The Employees’ Provident Fund (EPF) scheme was established to provide a regular source of income, financial security and peace of mind to employees after retirement. It is a government retirement saving and insurance scheme that is self-financed and contribution-based. It was established through the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952 and is governed by the Employees’ Provident Fund Organization (EPFO).

Eligibility Criteria – Who Can Access These Benefits?

The EPF scheme applies to all establishments that employ 20 or more employees. However, establishments with fewer than 20 employees can also opt for the scheme voluntarily.

The scheme applies to all employees, including those employed on a temporary or contract basis, who earn less than Rs. 15,000 per month. EPF is a mandatory scheme for all employees who work in specific industries such as jute, beedi, brick, and coir.

For employees who earn more than Rs. 15,000 per month but are EPF members, the contribution is made only for the threshold limit. For those earning more than Rs.15,000 and not EPF members, they can choose to enrol in the scheme voluntarily.

Members of the Armed Forces, members of the Indian Police Services (IPS), and employees of the Indian Railways who are covered under a separate provident fund scheme are not eligible for the EPF scheme.

Can households and small businesses offer these retirement and insurance benefits to their employees? No. The scheme does apply only to employees in the organized sector. However, with the TankhaPay app, employers can extend the benefits of the scheme to all employees including domestic workers, drivers, helpers, casual labourers, temporary workers, gig and platform workers and so on.