Employees' Provident Fund Organisation
The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.
EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.
Any organisation or factory with at least 20 employees needs to get themselves registered under EPF Scheme.
Establishment with less than 20 employees may get themselves voluntarily registered.
Liability to deduct and deposit EPF arises for all employees with wages of Less than INR 15,000 per month,
Employees of an organization, which are already registered under EPF Scheme, are directly eligible for getting their Provident Fund account opened from date of their joining.
There are many benefits of registering to the EPF scheme, some of these are:-
Amount deposited in EPF Account is a savings that can be withdrawn at any time for any purpose such as Education, Marriage, Medical emergency or same can be obtained post retirement.
If you withdraw the PF amount and interest on its maturity or after 5 years of completion of continuous employment, then its entire amount will be exempted from any Income tax liability.
If the employee leaves the organisation then he/she can withdraw 75% of the balance lying in EPF account on completion of one month of continuous unemployment. Balance 25%can be withdrawn post continuous employment period of 60 days.
Unlike before, EPF accounts are created and maintained completely online and The employees can have access to their EPF funds anywhere in the world with universal account number.
In case of death of the employee the nominee will get the PF amount and interest accumulated over the period.
Following is the list of document required for registration under EPF scheme:-
1. Establishment Details:
Copy of PAN Card
Address of the business
In case of factory, copy of factory licence
In case of start-up, startup registration certificate
In case of MSME, copy of MSME Registration certificate
Ownership Details
2. E-contact details
Email Id
Mobile Number
Details of Contact Person:
Copy of PAN
Designation and date of joining the establishment
Address and contact details
3. Details of Primary and other owners
Copy of PAN
Designation and date of joining the establishment
Address and contact details
4. Details of any other certificate. E.g. GST Registration, Shops and Establishment registration or any other certificate granted by government authority.
5. Details of employees covered under EPF Act
6. Details of Branches and divisions
7. Details of activities
NIC Code of activity (Not Mandatory)
Nature of work
8. Proof of Address:
Copy of Bank passbook/statement
Copy of electricity connection in the name of establishment
Copy of water connection in the name of establishment
Copy of postpaid telephone bills in the name of establishment
Any licence/Number/Certificate issued by government Authority
9. Agreement between employer and employee in case of voluntary coverage
Employees' State Insurance Corporation
ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.
All organisations listed under Factories Act and Shops and Establishments Act.
Factories and establishments with 10 or more employees have to register themselves under ESI schemes.
Employees earning wages not exceeding INR 21000/- per month will be covered to check requirements of ESIC registration.
ESIC Scheme ensures Various benefits to registered employees and their dependents. List of benefits is as follows:
Medical benefits: Reasonable medical care, comprehensive medical care & clinical investigation for insured people and his family members.
Medical Care: Medical facility within ESI Medical institutions to insured person and his spouse
Sickness Benefits and enhanced sickness and extended sickness benefits.
Disability benefits: Payment is made to the employee as long as disability continues.
Dependent Benefits: Amount is paid to the dependents of the Insured person who dies as a result of employment injury.
Maternity benefits: Paid maternity leaves are given for 26 weeks. 6 Weeks are given in case of miscarriage.
Funeral benefits: One time payment made for the funeral of an insured person.
Unemployment Allowance under Rajiv Gandhi Sharmik Kalyan Yojna’(RGSKY)
Vocational Rehabilitation Allowance
Following is the list of document required for registration under ESIC scheme:-
Details of Establishment:
Copy of PAN
Complete postal address of the factory/Establishment alongwith address proof.
Details of police station
Nature of ownership of premises, i.e., owned or rented
2. Details of all bank accounts
3. Nature of business
4. Registration details and certificate obtained either under Factories Act and Shops and Establishment Act.
5. Date of commencement of factory
6. Constitution of business
7. Name, age, Designation, father’s name and address proof of all directors/owner of the establishment
8. Details of number of employees
Number of employees covered under scheme
Bifurcation of employees in Male, female, transgender
Bifurcation of employees drawing wages of less than INR 21000 per month in Male, female, transgender
Date when number of employees reached 10 or 20
9. Details of employees
Name
Father’s name
Address
Date of Birth
Gender
Marital Status
Permanent Address
Date of Joining
Nominee details
Family Details
Email id and mobile number
Details of bank account
Copy of PAN And aadhar card
A cancelled cheque of the Bank Account of the Company