EPF is one of the main platform of savings in India for nearly all people working in Government, Private or Public sector organizations. It is implemented by the Employees Provident Fund Organization (EPFO) of India.
Companies which have employee strength of 20 or more are required to be registered with PF Department. The capacity of 20 includes contract employees like housekeeping, security or other contractual workers in the business. Those companies which do not have the endorsed number of employees but willing to register themselves to provide the advantages of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office. Registration has to be done within One month from the date of hiring 20 employees. Any delay may result in a penalty.
Documents required for Registration-
- PAN Card copy of firm/company/society/trust
- Cancelled cheque (bearing preprinted name & a/c no)
- Partnership deed (In case of partnership)
- Certificate of Registration (In case of Proprietorship/ Partnership)
- Certificate of incorporation (In case of company/ society trust)
ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family. Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit.
Advantages of ESI Registration-
- It provides complete medical benefits
- It includes dependants
- It can be used at different ESI dispensaries and hospitals
- Any payments made will be reimbursed
- It takes the needs of the disabled into account
- Access to Medical care in ESI Dispensaries/Hospitals
