Employees Provident Fund ( EPF ).

Businesses employing more than twenty employees at any time during the year are required to get an EPF Registration within one month of attaining the strength.Any delay in registration will attract heavy penalties. The definition of Employees includes both contractual and permanent employees.

Register for Employees Provident Fund (EPF).

Employees Provident Fund Scheme is a social security benefit scheme implemented by the government in order to secure the financial interests of the employees. In today’s world where every business is striving to get the best workforce, it’s important to have such employee benefit schemes to let them know that the business cares for them.


Registration Mandatory.

Businesses employing more than twenty employees at any time during the year are required to get an EPF Registration within one month of attaining the strength.Any delay in registration will attract heavy penalties. The definition of Employees includes both contractual and permanent employees.

Voluntary Rate of PF Contribution by the member.

As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.

Documents Required.

  • Copy of partnership deed if the company is a registered partnership firm
  • A copy of the Certificate of incorporation for a Public or Private Limited Company.
  • Societies should furnish a copy of their registration certificate
  • Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
  • Societies should furnish a copy of the rules and objects of the society
  • PAN details of the company
  • Proof of incorporation – GST Registration Certificate issued by competent authorities.
  • Address Proof of the Office to be Registered. (Utility Bill, Water Connection Bills,etc)
  • Specimen Signature Card
  • Consent Letter for Majority of Employees for Voluntary Coverage.

Time Period For Registration.

It normally takes 2 working days for EPF Registration.

Employee State Insurance (ESI)

Businesses employing more than ten employees at any time during the year are required to get an Employee State Insurance Registration within 15 days of attaining the strength. Any delay in registration will attract heavy penalties. The definition of Employees includes both contractual and permanent employees.

Coverage under the Employee State Insurance (ESI).

In an area notified u/s 1(3) by Central Govt. all factories where 10 or more persons are employed attract coverage under Section2(12) of ESI Act. Further, according to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI coverage.
(i) Shops
(ii) Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
(iii) Cinemas including preview theatres;
(iv) Road Motor Transport Establishments;
(v) Newspaper establishments.(that is not covered as a factory under Sec.2(12));
(vi) Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centres, pathological labs).

In some states, coverage is still for 20 or more persons employed under sec 1(5). A few State Governments have not extended the scheme to Medical & Educational Institutions.

Contribution.

E.S.I. The scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employers is 4.75% of the wages paid/payable in respect of the employees in every wage period. For newly implemented areas, the contribution rate is 1% of wages of Employee and 3% payable by Employers for first 24 months(w.e.f. 06.10.2016) Employees in receipt of a daily average wage up to Rs.137/- are exempted from payment of contribution. Employers will, however, contribute their own share in respect of these employees.

Time Period For Registration.

It normally takes 2 working days for EPF Registration.