ESI and PF Registration

ESI & PF Registration For Employees
(Price Start at $ 91 /-)

Many employers offer their employees a savings scheme, which helps employees save a portion of their earnings that can later be used by them after retirement. This scheme is known as a Provident Fund (PF), which is governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Every month, a specified portion of the employees’ monthly income is deduced and added to the PF, which is also matched by a contribution from the employer. The PF scheme was created with the goal of encouraging employees to save on a long-term basis and providing financial security after their retirement. These funds are then invested in financial tools that are capable of generating interest, and the funds so accumulated along with the returns are then paid to the employee when they retire.

The Employee State Insurance (ESI) scheme, which was established by the ESI Act of 1948, is aimed at providing social security along with health insurance to Indian employees, wherein both the employer and the employee can contribute a specified portion of the income of the employee towards the scheme. The ESI Act designed the scheme to ensure that employees are supported in cases of unpredictable medical emergencies and can access healthcare services adequately.

What are the advantages of esi and pf registration?

ESI and PF Registration can lead to higher employee retention by providing employees with job satisfaction and financial security and enhancing their overall well-being, thus promoting productivity and a financially secure work environment.

  • Medical benefits for both the employee as well as those dependent on him;
  • In times of unforeseen medical emergencies, the employee has access to financial assistance and a sense of security;
  • Employees are encouraged to indulge in long-term savings, which provides them with a sense of financial security post-retirement;
  • The funds created using such schemes can act like a safety net, which can be withdrawn in specific cases as need be, providing the employees with social security.

ESI and PF Registration can lead to higher employee retention by providing employees with job satisfaction and financial security and enhancing their overall well-being thus promoting productivity and a financially secure work environment.

What is the eligibility required for esi & pf registration?

To be eligible for the PF scheme, establishments must fulfill the following criteria:

  1. PF Registration is mandatory for establishments with 20 or more employees, while those with less than 20 employees can opt to register voluntarily.
  2. Such contribution to the EPF is mandatorily required for employees who earn a basic salary of up to Rupees 15,000, while those who earn more than that can choose whether to contribute or not.
  3. Establishments may be exempt from PF registration if they are covered under other retirement schemes, such as the National Pension Scheme.
  4. The employer as well as the employee have to contribute 12% of the monthly income to the EPF, which can be increased for establishments that may be involved in hazardous activities.

    The eligibility requirements for ESI in India are as follows:

  1. It is pertinent to note that the ESI Act applies to all non-seasonal factories that employ 10 employees or more and use electricity, non-power-using manufacturing establishments that employ 20 or more people, as well as all factory employees whose monthly income is up to Rupees 15,000.
  2. ESI Registration is mandatory for establishing having 10 or more employees, while those with less than 10 employees can opt to register for it voluntarily.
  3. It is compulsory to make contributions for employees that earn a gross monthly salary of Rupees 21,000 whereas those who earn less can do it of their own volition.
  4. Employers are required to contribute a sum of 3.25% of an employee’s monthly income, and the employees are to contribute 0.75% of their salary.

What are the documents required?

The following documents are required for ESI and PF registration in India

Name of the establishment, scanned copy of establishment’s PAN, date of set up of the establishment, scanned copies of any licenses in the establishment’s name, scanned copy of cheque of establishment’s bank account, address proof, list of directors/partners/proprietor along with their address proof and email id;

Scanned copy of bill of first sale as well as first purchase bill, employee strength from setup date;

List of all employees as well as details of the employees including but not limited to name, date of joining, address, salary, ID proof, and designation;

Digital Signature as well as Digital Signature Certificate.

Step by step guide to esi & pf registration

Step 1: Go to the EPFO website and register your establishment by clicking the “Establishment Registration” button, which will redirect you to the Unified Shram Suvidha Portal (USSP). Sign up by providing all details as needed.

Step 2: Once the establishment has been registered, log in to the USSP, click “Registration for EPFO-ESIC” and click “Apply for New Registration”. The employer can select which Act it wants to register under. You can choose both the Employees’ State Insurance Act, 1948, and the Employees’ Provident Fund and Miscellaneous Provision Act, 1952 for both ESI and PF registration.

Step 3: Fill the registration form by providing details of your establishment, activities along with NIC code and nature of work, details of the employees, and upload the required documents. Upon completion, the details will be shown summarily, which should be thoroughly checked before clicking “Submit.”

Upon completion of the above steps, the employer needs to attach a Digital Signature Certificate, following which the employer will receive an email along with the login id and password required for logging in to the EPFO and ESIC websites.

Compliances

To fortify employee welfare, a Provident Fund (PF) scheme was introduced by the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952. This discerning initiative entails the systematic deduction of a stipulated portion from employees' monthly earnings, harmonized by a corresponding contribution from the employer. The PF scheme, meticulously crafted to inspire a culture of sustained fiscal prudence, enables employees to accumulate savings and promises a safeguarded financial haven in their post-retirement phase. The accrued funds, judiciously invested to garner interest, culminate into a substantial corpus that is judiciously disbursed to employees upon retirement, ensuring a dignified financial future. Concurrently, the Employee State Insurance (ESI) scheme, a product of the ESI Act of 1948, amplifies the spectrum of social security and health insurance benefits conferred upon Indian employees. The ESI Act manifests as a testament to the collective resolve to bolster employees against unforeseen medical exigencies, reinforcing their unfettered access to indispensable healthcare.


Common mistakes to avoid in esi & pf registration

  1. While registering your establishment, some documents may not be provided as required, or incorrect documents may be uploaded.It is crucial to have all the documentation required as stated above and furnish it as required to avoid unnecessary delays and elongation of the registration process.
  2. It is crucial that the registration is done within the stipulated time frame, and that all deadlines are strictly adhered to, to avoid penalties for the delay of registration.
  3. Ensure that the employee details are provided correctly and accurately, and verify all details before registration.
  4. To avoid incompliance with regulations and beat errors, seeking legal counsel from a professional specializing in labour and employment laws can help ensure that the registration process is completed smoothly, with no bumps in the road.

How can seedling help you with esi & pf registration?

We are well-equipped with the knowledge and skill sets necessary to guarantee your establishment is easily registered for ESI and PF, thanks to our team of specialists who specialise in labour and employment law. Our professionals are here to help you every step of the way, from providing counsel on regulatory requirements to compiling and organising the essential documentation and effortlessly completing the registration procedure on your behalf. We stay current on all legal developments, undertake compliance audits to ensure your establishment is compliant, and remedy any gaps as soon as possible. By putting your faith in us, you can be confident that your company is in full compliance with ESI and PF requirements, reducing legal risks and protecting the well-being of your employees.

Most common question about our services

Can an establishment voluntarily register for ESI or PF if it doesn’t meet the minimum requirements for employee strength?

Yes, businesses have the authority to register for ESI and PF on their own initiative, even if the minimum employee strength criteria are not satisfied, allowing them to give social security benefits to their employees and improve welfare.

How long do employers have to register their firm for ESI or PF?

For PF, establishments are required to be registered by their employees within 30 days of hiring the first employee. On the other hand, for ESI, employers must register their establishment within 15 days of hiring the first employee

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