What is Provident Fund and ESI ?

 Provident fund is a savings scheme for the benefit of the employees run by the government. Employees Provident Fund Organisation (EPFO) is a governmental body which maintains and oversees the fund. Contribution to PF is mandatory for every employee, employers also contributes equally to the provident fund. Amount accumulated in the fund can be withdrawn at the time of retirement along with interest.
ESI Scheme is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the ’employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
ESI PF Registration

What are the Documents required for ESI/PF Registration?

  • MOA & AOA with Certificate of Incorporation/Partnership Deed
  • List of minimum 20 Employees with their DOJ and Rate of Salary
  • Business Number Allotment Form (may be obtained from Pf Office)
  • Copy of GST Registration Certificate
  • Copy of Factory/Shop & Comm. Est Registration
  • Copy of PAN

Who is required to register?

Organisations employing 20 or more members are required to register with PF department. Strength of 20 includes contract employees. Companies can also register themselves voluntarily. Employers are required to register with PF department within one month from the date of reaching 20 employees.

A Employees’ Contribution 1.75% of Total Wages
B Employers’  Contribution 4.75% of Total Wages

In a situation where all employees are drawing above Rs. 15,000/-, you still need registration, we file a letter that there are no employees who draw a gross salary lesser than Rs. 15,000 per month and therefore no contribution, filing of returns etc. is still required. Therefore ESI registration is purely from a compliance perspective.