Provident Fund

Organization having employee strength of 20 or more are required to be registered under EPFO Scheme with PF Department within one month of crossing the threshold. Provident Fund or PF is largely an employee benefits scheme prescribed by the Government which provides facilities to the employees of an organization with regard to medical assistance, retirement, education of children, insurance support and housing. It is created with the purpose to provide financial security and stability to employees. Employees drawing basic salary up to Rs 15000/- have to compulsory contributions to the and employees drawing above Rs 15000/- have an option to become a member of the Provident Fund.

Documents Required for PF Registration:

  • Digital Signature of Proprietor/Partner/Director
  • Aadhar Card of Proprietor/Partner/Director
  • PAN Card of Proprietor/Partner/Director
  • Cancelled Cheque/Bank Statement of Entity
  • PAN Card of entity
  • Electricity Bill of the Registered Office (not older than 2 months)
  • Shop and establishment Certificate/GST Certificate/ License issued by the government for factory

PF Payment: Provident Fund (PF) payments are due on the 15th of each month. The employer must deposit a total of 12% or 10% of the employee wages towards PF on or before this date every month. For most entities, the PF rate of 12% would be applicable

PF Return: Provident fund return must be filed by all entities having PF registration every month. PF return is due on the 15th of each month. Further, a final PF return is due on the 25th of April for the year ended on 31st March.

Delay in the deposit of P.F. dues attracts penal damages. Damages are levied at the following flat rates:

  • Delay of 0 to 2 months– @ 5 % p.a.
  • Delay of 2 to 4 months – @10 % p.a.
  • Delay of 4 to 6 months– @ 15 % p.a.
  • Delay more than 6 months – @ 25 % p.a. (subject to a maximum of 100%)

Employees' State Insurance (ESI)

Employee State Insurance is a self-financing social security scheme and health insurance plan for Indian workers, offering medical and disablement benefits. Governed by the ESI Act, 1948, it is managed by Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. ESIC is expected to manage the fund as per the rules and regulations set forth by the Act.

The ESIC is applicable on all the establishments having 10 or more workers and is beneficial to all the employees earning Rs.15, 000/- or less per month as wages, employer must contribute 3.25 percent and employee must contributes 0.75 percent towards ESI.

The due date for ESI return filing is 15th of subsequent month

Benefits of ESI

The ESIC takes care of an individual’s and his dependents’ medical expenses by full medical and surgical care. his dependents without any limit in ESI dispensaries and hospitals including a supply of medicine, ambulance services, and super specialty consultation.

In case an employee is disabled, ESIC ensures that the employee is paid 90% of their monthly wages for the period of the injury in case of a temporary disablement. In case of permanent disablement, 90% of wages paid for the remaining life of such an employee.

Sickness benefit is also provided to the insured employees in the form of cash compensation. At the rate of 70% of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year by Employees State Insurance Corporation.

ESIC also helps the insured women employees in the time of pregnancy. Maternity benefit for confinement/pregnancy is provided by ESIC for six months subject to contribution for 70 days in the preceding year.

In case the employee meets with an untimely death due to an injury at the place of employment, ESIC pays a dependent benefit at the rate of 90% of wage in the form of monthly payment to the dependents of a deceased insured person.

The ESIC ensures unemployment allowances equal to 50% of wage for up to 1 year and medical care for self and family from ESI Hospitals in case of permanent invalidity due to a non-employment injury or  involuntary loss of employment.

Get your PF & ESI Registration & Return filing by Gupta Chandan & Associates at affordable cost