About PF-ESIC
The PF-ESIC Registration is an essential statutory requirement for organizations employing a workforce. The Employees’ Provident Fund (EPF) is a retirement savings scheme designed to provide financial security to employees upon retirement, while the Employees’ State Insurance Corporation (ESIC) offers health insurance and social security benefits to workers. Ensuring timely and accurate registration helps organizations comply with legal obligations and provide valuable benefits to their employees.
For companies with 20 or more employees, it is mandatory to register with the Employees’ Provident Fund Organization (EPFO) in India. However, businesses with fewer than 20 employees have the option to voluntarily enroll in the EPF scheme to extend these benefits to their workforce. This flexibility allows smaller enterprises to provide their employees with additional financial security and support.
Let Legal Helpzyn‘s expert Chartered Accountants (CAs) and Company Secretaries (CSs) handle your EPF and ESIC registration and set up your company account for seamless contributions. Start securing your employees’ benefits today with the professional assistance of Legal Helpzyn!
Companies Under PF Jurisdiction
- Private and Public Sector Companies: Any company with 20+ employees must contribute to the Employees’ Provident Fund (EPF).
- Government Organizations and PSUs: All government establishments and public sector undertakings must contribute to EPF.
- Factories and Commercial Establishments: Any factory or establishment with 20+ employees is covered by the EPF Act.
- Cooperative Societies: Certain cooperative societies with 20+ employees are also under EPF jurisdiction.
- Contract Employees: If the employer is covered, contractual employees may also be included in the PF scheme.
Companies Under ESIC Jurisdiction
The Employees’ State Insurance Corporation (ESIC) covers companies and establishments with 10 or more employees in most cases. Industries under ESIC jurisdiction include:
- Factories (with 10+ employees)
- Shops (with 20+ employees)
- Hotels, Restaurants, and Cinemas (with 20+ employees)
- Road Transport (with 20+ employees)
- Newspaper Establishments (with 20+ employees)
- Contractors (with 20+ employees)
- Educational Institutions (with 20+ employees)
ESIC provides benefits like medical care, sickness, and maternity benefits to employees earning up to ₹21,000 (₹25,000 for those with disabilities).
PF-ESIC Registration with Legal Helpzyn
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Contribution Rates of PF/ESIC
Contribution of PF
- Employee’s Contribution: 12% of basic salary + dearness allowance (DA).
- Employer’s Contribution: 12% of basic salary + DA, which is further divided into:
- 8.33% towards EPF
- 3.67% towards Employees’ Pension Scheme (EPS)
Contribution of ESIC
- Employee’s Contribution: 0.75% of the wages.
- Employer’s Contribution: 3.25% of the wages.
Benefits of PF Registration
This benefit ensures that all eligible employees, regardless of their industry or sector, can participate in the EPF scheme.
Employees can apply for loans against their EPF balance for specific purposes like house construction, vehicle purchase, or medical emergencies. Insurance coverage is provided under the Employees' Deposit Linked Insurance Scheme (EDLI).
Contributions made to EPF are eligible for tax deductions under Section 80C of the Income Tax Act, providing tax benefits to the employee.
The insurance coverage is automatically provided under the EDLI scheme, and the nominee receives the benefit upon the employee's death..
Employees can withdraw a portion of their EPF balance under specific circumstances, such as buying a house, higher education, or medical emergencies
In case of the employee's untimely demise, the nominee or legal heir receives the accumulated EPF balance along with the insurance benefit.
Upon retirement, employees can withdraw their entire EPF balance or opt for a pension scheme.
Employees can opt for a pension scheme, which provides a regular monthly income after retirement.
Documents required for PF Registartion
- PAN Card: A copy of the Permanent Account Number (PAN) card of the establishment or the entity applying for registration.
- Aadhaar Card: A copy of the Aadhaar card of the establishment or the entity applying for registration.
- Bank Account Details: The bank account details of the establishment or the entity applying for registration for making the necessary payments towards the provident fund.
- Address Proof: A copy of the address proof of the establishment, such as a utility bill or a lease agreement.
*Additional Documents (Depending on the nature of the business):
- Shop and Establishment Certificate: If applicable.
- GST Registration Certificate: If applicable.
- License or Permit: If required for the specific industry or business activity.
- Partnership Deed: For partnership firms.
- Memorandum of Association and Articles of Association: For companies.
- Rent Agreement: If the establishment is rented.
- KYC Documents of Directors/Partners: Identity and address proof.
- Digital Signature Certificate: For online submission of forms.
Benefits of ESIC Registration
Eligible female employees can claim maternity benefits from the ESIC for a specific period.
Provides financial assistance to employees who suffer from work-related accidents or occupational diseases.
Eligible employees can claim sickness benefits from the ESIC for a certain number of days in a year.
Provides comprehensive medical care to employees and their families.
In case of an employee's death, their dependents can claim benefits from the ESIC.
The family of the deceased employee can claim reimbursement for funeral expenses from the ESIC.
Documents required for ESIC Registartion
Company Registration Certificate:
- Certificate of Incorporation (for companies)
- Partnership Deed (for partnerships)
PAN Card of the establishment
Address Proof:
- Rent agreement
- Utility bills (electricity, water, etc.)
Bank Account Details:
- Cancelled cheque
Employee Details:
- List of employees with their names, addresses, Aadhaar numbers, date of joining, designation, and salary.
Digital Signature Certificate (DSC):
- Required for online registration
FAQs
What is the difference between PF and ESIC?
PF is primarily a retirement savings scheme, while ESIC provides health insurance and social security benefits.
Can I be registered for both PF and ESIC?
Yes, if you meet the eligibility criteria for both schemes, you can be registered for both PF and ESIC.
What happens if I change jobs?
If you change jobs, you can transfer your EPF balance to your new account and continue your ESIC benefits.
How can I update my details in EPF/ESIC?
You can update your details through the respective online portals or by visiting the offices.
What should I do if my employer does not register me for EPF/ESIC?
You can file a complaint with the respective authorities (EPFO or ESIC) if your employer fails to register you.
What should I do if I forget my EPF account number?
You can retrieve your EPF account number by visiting the EPFO website and using the “Forgot UAN” option, provided you have your details handy.
Can I withdraw my EPF before retirement?
Yes, you can withdraw your EPF balance under certain conditions, such as job change, medical emergencies, or purchasing a house.
What happens to my EPF account if I move abroad?
If you move abroad, you can either withdraw your EPF balance or transfer it to a Non-Resident External (NRE) account, subject to certain conditions.