PF / ESI

What is PF/ ESI?

Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the umbrella of Employees’ Provident Fund Organisation (EPFO). PF registration is applicable for all establishment which employs 20 or more persons, subject to certain circumstances and exemptions even if they engage less than 20 employees. Under EPF scheme, an employee has to pay a certain contribution towards the scheme and an equal contribution is paid by the employer. The employee gets a total amount including self and employer’s contribution with interest, on retirement or resignation.

ESI or Employee State Insurance is a self-financing social security scheme in India. ESI was originally applicable for factories that employed ten or more persons. Subsequently, the coverage of ESI scheme has been expanded. Currently, any factory or establishment employing ten or more persons drawing wages of up to Rs.21,000 per month must obtain ESI registration.

Who is Eligible for PF?

It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. As per the guidelines in EPF, employee, whose ‘basic pay’ is more than Rs. 15,000 per month, at the time of joining, is not required to make PF contributions. Nevertheless, an employee who is drawing a pay of more than Rs 15,000 can still become a member and make PF contributions, with the consent of the Employer and Assistant PF Commissioner.

Documents Required or PF Registration

For Proprietorships

  • Name of the applicant

  • Pan card of proprietor

  • Id proof of the proprietor like Driving license/Passport/Election Card

  • Address proof of proprietor.

  • Address proof for the premises.

  • Complete details of the applicant with their residential address and telephone number

For Partnership Firms / LLP / Company

  • Name of the partnership firm or LLP or Company

  • Certificate of Registration Firms in case of Partnership firm. Incorporation Certificate in case of LLP or Company.

  • Partnership deed in case of partnership firms or LLP.

  • Id proof of Partners –Pan card /Election Card / Passport/Driving license in case of Partnership Firm or LLP. ID proof of Directors in case of company.

  • List of all partners with telephone number and address proof of all partners in case of Partnership Firm or LLP. List of all Directors with contact details in case of Company.

Benefits of ESI Registration for Employee

The following are some of the major benefits for employees working in a ESI Registered entity.

  • Medical Benefit

  • Sickness Benefit

  • Disablement benefits

  • Maternity Benefit

  • Dependent Benefit.

  • Unemployment Allowance

  • Physical rehabilitation

  • Old age medical care

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