EPF Registration

Employees Provident Fund (EPF) is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of the Employees’ Provident Fund Organisation (EPFO) which is one of the world’s largest social security organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is like a benefit to an employee during the retirement provided by the organisation (EPFO).

ESI Registration

The government introduced the ESI scheme for Indian workers. ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation (ESIC). The ESIC is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. 

ESI scheme provides social security to the workers. Employers and employees contribute a percentage of employee's wages towards ESI every month. Huge variety of medical, monetary and other benefits are provided to workers covered under the ESI Act.

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 an amount of 3.25% of the total monthly wage payable to the employee whereas 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.

Why is It Important for an Employer to Register for EPF?

Since TDS is deducted from employees’ salaries, EPF registration is a critical process for employers. Furthermore, they would be required to process remittances only after employers generated challans through the EPFO employer portal. As a result, they must go through this procedure.

Risk coverage: The Provident Fund’s most fundamental benefit is to cover the risks that employees and their dependents may face as a result of retirement, illness, or death.

Uniform account: One of the most important aspects of the Provident Fund account is that it is consistent and transferable. It is transferable to any other place of employment.

Employee Pension Scheme (EPS): EPS is available to all PF account holders. According to it, a pension amount is deducted at the rate of 8.33% of up to Rs.15,000 from the employer's contribution, which is paid as a monthly pension to an employee after 58 years of age.

Long-term goals: Many long-term goals, such as marriage or higher education, necessitate the immediate availability of funds. During such times, the accumulated PF amount is frequently useful.

Emergency needs: Certain unanticipated events, such as marriage or other family gatherings, as well as any mishap or illness, necessitate immediate financial assistance. The PF amount can be extremely beneficial.