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PF & ESI registration
PF & ESI registration
PF & ESI registration
Here are 3 steps to complete your process
Submit employee records and business registration details.
File forms for PF and ESI registration.
Receive your PF and ESI codes.
Required Documents for PF & ESI Registration
Introduction
The Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) are government-mandated social security schemes in India. These schemes provide financial security and healthcare benefits to employees. Businesses that employ a certain number of workers are required to register under these schemes and comply with the relevant regulations.
Why is PF & ESI Registration Important?
Step-by-Step Process for PF & ESI Registration
Benefits of PF & ESI Registration
Mistakes to Avoid
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Find answers to common questions about PF & ESI registration in India, including timelines, requirements for directors and shareholders, compliance obligations, and guidelines for foreign nationals to help you understand the process thoroughly
PF and ESI provide financial security to employees. PF ensures savings for retirement, while ESI offers medical benefits in case of sickness, maternity, or employment-related injuries.
Both the employer and the employee contribute to the PF. Typically, each contributes 12% of the employee’s basic salary and dearness allowance, which accumulates in the employee's PF account.
Yes, PF can be withdrawn before retirement under specific circumstances, such as purchasing a home, medical emergencies, or unemployment for more than two months.
ESI covers not just the employee but also their family members, providing them with medical care, maternity benefits, and dependents’ benefits in case of the employee’s death due to employment injury.
PF can be transferred to the new employer's PF account using a Universal Account Number (UAN). ESI contributions continue under the same Insurance Number and are adjusted based on the new employer's details
PF is mandatory for employees earning a basic salary up to ₹15,000 per month, while ESI applies to employees earning up to ₹21,000 per month. However, some organizations offer these benefits beyond these limits.
PF earns interest annually, as declared by the government. The interest earned is tax-free unless the PF is withdrawn before completing five years of continuous service.
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Employers may face penalties, fines, or even imprisonment for failing to deposit PF and ESI contributions. The respective authorities can also initiate recovery proceedings.
Self-employed individuals are not covered under the statutory PF or ESI schemes, but they can opt for other retirement and health insurance plans available in the market.
ESI is a statutory social security scheme providing medical benefits to employees and their dependents, funded through contributions from both employers and employees. In contrast, other health insurance schemes are usually voluntary, privately managed, and often require higher premiums.
Yes, PF & ESI registration is mandatory for businesses that employ a certain number of workers, as specified by the government regulations.
Non-compliance with PF & ESI regulations can lead to penalties, including fines, imprisonment, and legal proceedings.
Returns and contributions need to be filed and made on a monthly basis.
You will need the employee's Aadhaar card, PAN card, date of joining, and salary details.
Yes, you can register your business online through the EPFO and ESI portals.
By understanding the importance of PF & ESI registration and following the steps outlined above, businesses can ensure compliance with labor laws and provide social security benefits to their employees
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