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ESI & PF Registration

  • Company Details
  • Banking & Tax Details
  • Employee Details (As per ESI & PF records)

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The Employees’ Provident Fund (EPF) is regulated by the Employees’ Provident Fund Organization (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF serves as a retirement benefit scheme for employees, ensuring financial security after retirement.

 

ESI & PF Calculation

The Employees’ State Insurance (ESI) scheme covers various salary components, including:

  • Basic Pay
  • Dearness Allowance (DA)
  • City Compensatory Allowance
  • House Rent Allowance (HRA)
  • Incentives
  • Attendance & Overtime Payments
  • Meal & Uniform Allowance
  • Special Allowances

 

Eligibility Criteria for PF & ESI Registration

  • Mandatory for organizations employing 20 or more employees (including contract workers).
  • Voluntary registration is available for businesses with fewer than 20 employees.
  • Employers must register with the EPFO within one month of reaching 20 employees.
  • All employees are eligible for EPF registration from the start of employment.

 

PF Contribution & Deduction

  • Employers & employees each contribute 12% of the employee’s basic salary towards EPF.
  • For companies with less than 20 employees, the PF deduction rate is 10% of the employee’s basic salary.
  • The employer is responsible for deducting and depositing the PF contributions.

 

Benefits of ESI & PF Registration in Chennai

Registering for Employees’ State Insurance (ESI) and Provident Fund (PF) provides numerous financial and social security benefits to employees.

 

1.  Partial Fund Withdrawals

Employees can make partial withdrawals from their EPF account in specific situations, including:

  • Medical emergencies
  • Home loan repayment
  • Construction or purchase of a new house
  • House renovation
  • Marriage of self or children

 

2. Provident Fund & Employee Pension Scheme (EPS) Contribution

EPF is divided into two components:

  • Provident Fund (PF)
  • Employee Pension Scheme (EPS)

Employee Contribution:

  • 12% of basic salary + dearness allowance (DA) goes to the Provident Fund.
  • Out of 12% employer contribution, 8.33% is allocated to EPS, and the remaining amount goes to the Provident Fund.

 

3. Pension Benefits Under EPS

  • Pension eligibility depends on the years of service and average salary drawn.
  • A retired employee receives EPS money as a lump sum along with the PF amount.

Employees who:

  • Reach 58 years of age
  • Complete at least 10 years of service (without withdrawal)
  • Qualify for a monthly pension under EPS

 

4. No Repayment for Withdrawals

  • Employees can withdraw funds from their EPF account during financial emergencies.
  • No repayment required, unless the amount is misused.

 

5. PF Settlement on Resignation

If an employee resigns, they can withdraw the entire PF balance, which includes:

  • Employee contribution
  • Employer contribution
  • Accrued interest

DOCUMENT REQUIRED

 

If you are applying for Employees’ State Insurance (ESI) and Provident Fund (PF) Registration, the following documents are required:

 

1. Company Details

  • Company PAN Card (For proprietorships, the proprietor’s PAN card is required)
  • List of Partners/Directors & their address proof along with personal details
  • Digital Signature Certificate (DSC) of the Partners, Directors, or Proprietor

 

2. Banking & Tax Details

  • Cancelled Cheque of the business bank account used for transactions
  • GST Registration Certificate

 

3. Employee Details (As per ESI & PF records)

Employee Strength – Month-wise details from the date of business setup

Employee Personal & Employment Information:

  • Full Name & Family Details
  • Date of Joining
  • Date of Birth
  • Mobile Number
  • Postal Address
  • Nominee Details
  • Grade Pay & Salary Structure
  • Designation
  • Bank Account Number with IFSC Code
  • ID Proofs (Aadhaar & PAN Card)

Step 1: Visit the Official Portal

  • For ESI Registration: https://www.esic.gov.in
  • For PF Registration: https://www.epfindia.gov.in

 

Step 2: Employer Registration

  • Select the “Sign Up” option on the ESIC or EPFO portal.
  • Enter company details, including business name, PAN, email, and contact details.
  • Create login credentials to proceed with the application.

 

Step 3: Fill Out the Application Form

Enter required details such as:

  • Company details (PAN, GST, bank details, address, etc.)
  • Employee strength & salary structure
  • Nominee details and employee bank accounts
  • List of directors/partners with KYC details

 

Step 4: Upload the Required Documents

  • Submit scanned copies of essential documents, including PAN, GST, digital signature, and employee details.

 

Step 5: Pay the Registration Fee

  • Make the required statutory payment online through the government portal.

 

Step 6: Verification by Authorities

  • The ESIC and EPFO department will review the application and verify the provided details.
  • If required, an inspection may be conducted by the authorities.

 

Step 7: Issuance of Registration Certificate

Once the verification is complete, the employer will receive:

  • ESI Registration Certificate
  • EPF Registration Number (UAN for employees)

The documents can be downloaded from the portal.

 

Why Register for ESI & PF?

  1. Legal compliance – Mandatory for businesses with 20+ employees.
  2. Employee benefits – Ensures medical, financial, and pension security.
  3. Easy online processing – No manual paperwork, fully digital application.
  4. Avoid penalties – Non-compliance can result in fines and legal issues.

EPF and ESIC Compliances are essential reporting formalities that every eligible entity must fulfill to ensure legal compliance. These include various declarations such as employee records, contribution details, nominations, and more, which must be submitted to the regulatory department on time. Don’t view it as an additional burden; instead, consider it a crucial aspect of maintaining legal security.

 

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Frequently Asked Question

1. What are the benefits of ESI?

  • Medical Benefits – Free treatment for employees & dependents.
  • Sickness Benefits – 70% of salary for up to 91 days if an employee is sick.
  • Maternity Benefits – Paid maternity leave for female employees.
  • Disability & Injury Benefits – Compensation for work-related accidents.
  • Dependent Benefits – Pension to family members in case of the employee’s death.

2. What are the contribution rates for ESI?

  • Employee Contribution – 0.75% of gross salary.
  • Employer Contribution – 3.25% of gross salary

Example: If an employee’s gross salary is ₹20,000,

  • Employee Pays: ₹150 (0.75%)
  • Employer Pays: ₹650 (3.25%)

3. Is ESI mandatory for all employees?

  • Yes, for employees earning ₹21,000 or less per month.
  • No, for employees earning more than ₹21,000 per month.

4. How can an employee check their ESI details?

  • Employees can log in to the ESIC portal using their ESI Number and access their medical benefits.

5. How to file ESI returns?

  • Employers must file ESI returns every six months on the ESIC portal.

6 Can ESI be availed in any hospital?

  • ESI beneficiaries must visit ESIC network hospitals and dispensaries for treatment.

7 What are the benefits of EPF?

  • Retirement Savings – Lump sum + interest on retirement.
  • Tax-Free Returns – EPF contributions are tax-exempt under Section 80C.
  • Loan Facility – Employees can withdraw for medical needs, home purchases, or education.
  • Life Insurance Coverage – Under EDLI (Employee Deposit Linked Insurance).
  • Pension Benefits – Monthly pension after retirement under EPS (Employees’ Pension Scheme).

8 What are the EPF contribution rates?

  • Contribution                        Percentage of Basic Salary                       Who Pays?
    EPF Contribution                12%                                                               Employee
    EPF Contribution                 12%                                                              Employer
    EPS (Pension Contribution) 8.33% (from Employer’s share)              Employer
    EPF Admin Charges              0.50%                                                          Employer
    EDLI (Life Insurance)            0.50%                                                          Employer
    Example: If an employee’s basic salary is ₹15,000,
    • Employee Pays: ₹1,800 (12%)
    • Employer Pays: ₹1,800 (12%)

9 How can employees check their PF balance?

Employees can check their PF balance using:

  • EPFO Portal (https://unifiedportal-mem.epfindia.gov.in/memberinterface/)
  • UMANG App
  • Missed Call (011-22901406) from registered mobile
  • SMS “EPFOHO UAN” to 7738299899

10 Can an employee withdraw EPF before retirement?

  • Yes, partial withdrawals are allowed for:
  • Medical emergencies.
  • Marriage or education expenses.
  • Home loan repayment.
  • Full withdrawal is allowed only after retirement or unemployment for 2+ months.

11 How to file EPF returns?

  • Employers must file EPF returns monthly on the EPFO portal and deposit contributions by the 15th of each month.

12 What happens if an employer does not register for PF or ESI?

Penalty for non-registration:

  • ₹5,000 to ₹10,000 fine per employee.
  • Interest charges on late payments.
  • Legal action by EPFO/ESIC authorities.