PF and ESI | VKH & ASSOCIATES

PF (Provident Fund) and ESIC (Employee State Insurance Corporation) are two different types of social security schemes in India that are designed to benefit employees. While PF is mandatory for all employees earning more than Rs. 15,000 per month, ESIC is mandatory for all employees earning less than Rs. 21,000 per month.

Provident Fund (PF) is a retirement benefit scheme that is offered to employees by their employers. It is a statutory scheme regulated by the Employees’ Provident Fund Organization (EPFO). Under this scheme, both the employer and the employee contribute a certain percentage of the employee’s salary towards the fund. The employee can withdraw the accumulated amount along with interest at the time of retirement, resignation, or in the case of death.
A PF return is a statement filed by the employer with the EPFO, showing the contributions made towards the fund for each employee, as well as other details such as the employee’s basic salary, DA, and other allowances
Both private and public organizations are eligible for employee provident fund registration, allowing anyone to become a member of the EPF. Organizations with at least 20 employees are required to provide EPF benefits to their employees. Employees are entitled to various benefits such as pensions and insurance benefits.

ESIC registration is mandatory for businesses employing a minimum of 10 workers in various sectors such as road transport, hotels, cinemas, newspapers, shops, and educational/medical institutions. In some states, this threshold has been extended to 20 employees. Employees earning a monthly salary of up to Rs. 15,000 are eligible for coverage under the ESIC scheme.

Registering Company for EPF

Visit the EPFO web portal for registering your company. Select the option stating ‘Establishment Registration’ present on the home page of this unified portal.

Registering Company for ESI

Step 1: Register to ESIC Portal, the employers need to fill in the details and submit the form.
Step 2: After login to ESIC portal, submit details in Employer Registration Form-1 and make payment for Registration of the advance contribution (for 6 months)
Step 3: On the successful payment of advance contribution, the Registration Letter (C-11) will be generated.

The employer has to attach the following documents with the PF registration form:

PAN of the Partner, Proprietor, or the Director
Address proof (can be any utility bill but should not be older than 2 months)
Aadhar card of Proprietor, Partner, or Director.
Canceled Cheque Or Bank Statement
Digital Signature of the Proprietor/ Partner or Director.
Hired/ Rented or Leased Agreement If there is any.

Documents Required for ESI

Memorandum of Association and Articles of Association of the Company
The compensation details of all the employees
PAN Card of the Business Entity as well as all the Employees working under the entity
List of all the employees working in the Establishment
List of the Shareholders of the Company
List of Directors of the Company
A cancelled cheque of the Bank Account of the Company
A registration certificate obtained either under the: Factories Act, or Shops and Establishment Act
A register containing the attendance of the employees
Certificate of Registration in case of Company, and Partnership deed in case of a Partnership

Provident Fund Registration & Employee State Insurance Registration