Provident Fund (PF) and Employee State Insurance (ESI) are part of social security schemes by the Government to protect the rights of workforce in India. These are governed by Ministry of Labour and Employment and their compliance is to be duly considered by the employers.

What is PF and ESI?

PF takes care of workers retirement plans  and their future needs through Employee Provident Fund Organization.

ESI look after the medical requirements and is governed by Employee State Insurance Corporation which falls under the aegis of Ministry of Labour and Employment.

Advantages of a ESI and PF registration

Following are the advantages of obtaining a ESI and PF registration:

1. Medical benefits

2. Social security

3. Funeral expenses

4. Benefits to dependents upon death of insured

5. Old age medical help

6. Post-Retirement surplus

Eligibility criteria for ESI registration

Any establishment or factory employing 10 workers or more drawing wages up to Rs 21,000 per month must register for ESI. Earlier it was limited to factories only.

Eligibility criteria for EPF registration

EPF registration is voluntary for some and mandatory for others. For organization with 20 or more employees are required to mandatorily register for EPF as per law. While for other organization, law puts no mandate.

For employee drawing less than Rs 15,000 per month including both basic and dearness allowance , the employer has to compulsorily open their EPF account. For those whose monthly salary is above Rs 15000, falls under non-eligible employee and for them voluntary registration can be done but with the consent of employer and approval of Assistant PF Commissioner.

Documents needed for registration

The applicant should have 2 xerox copies of the following documents while seeking ESI and EPF registration:

1. Name of company/ Proprietor with address proof and date of setup,

2. Details of PAN Card of Company,

3. GST and other license details of the company,

4. Scanned copy of Company’s Cheque,

5. List of Directors/ Partners of Company along with their  particulars and address proofs,

6. Digital Signature of Proprietor/ Director/ Partner,

7. Monthly strength of employees of organization from the date of setup,

8. Current list of employees, their particulars, salary details, nominee details, Bank account number and ID Proof.

How to apply for EPF and ESI registration?

Following are the key steps to avail ESI and EPF registration:

1. Sign up on Unified Shram Suvidha Portal,

2. Log in using verification link sent on registered email-id by creating username and password,

3. Apply for New Registration under “Register for EPFO-ESIC”,

4. Then select Act/Acts applicable to your organisation from

• Employees’ State Insurance Act, 1948 and

• Employees’ Provident Fund and Miscellaneous Provision Act, 1952,

5. In the follow-up window enter establishment details like owner details, PAN No. etc

6. Upon submission, enter contact details of the authorised person,

7. Next select the Type of ID Proof and fill in the requisite details,

8. Later enter Employee details, nature of activity and work and upload documents of proof.

9. Lastly upload Digital Signature Certificate and finally submit the form.

Conclusion

EPF and ESI are one such scheme of the Central Government which have pre-defined percentage cut from salary of employee and contribution by employers. These are essential to ensure well being of workforce.

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