How to apply for EPF and ESIC Online ?

28th Mar 2019
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EMPLOYEE PROVIDENT FUND (EPF) AND EMPLOYEE STATE INSURANCE CORPORATIONS (ESIC)

If you are planning to start a business venture or want to start a Manpower supply business or Security Guard services, you need to comply with certain labor and employee welfare rules. EPF & ESIC are two of the imported labor welfare law which you need to be compiled. Let’s understand some basic points about them.


Step 5 G: -How to Apply for EPF and ESIC online?


EMPLOYEE PROVIDENT FUND (EPF) AND EMPLOYEE STATE INSURANCE CORPORATIONS (ESIC)

If you are planning to start a business venture or want to start a Manpower supply business or Security Guard services, you need to comply with certain labor and employee welfare rules. EPF & ESIC are two of the imported labor welfare law which you need to be compiled. Let’s understand some basic points about them.


What is the Purpose for EPF & ESIC?

EPF: – Employee provident fund or EPF is a measure of saving for the employees, which can be used as a supporting income on retirement, or as a measure of immediate relief in case of an unfortunate situation. This can also be a savior for employees in case of a house purchase, Marriage of their children or any other requirements as mentioned in the EPF MA 1952, where partial withdrawal is allowed.

ESIC: – Employee State Insurance Corporation is a mandatory insurance scheme for workers who are drawing less than Rs/- 15000 in a month (From 2013 this ceiling is increased to Rs 25000/-). This compulsory insurance also helps employers to cover up their contingent liability of treatment and medical expenses, which may be incurred if an accident has happened at the business premises or factory.

On the other hand, it offers an economic & medical assurance to workers and its dependents. Besides providing medical benefits to workers and its dependents it also ensures worker from temporary or permanent disablement and sickness.

Who needs to apply for EPF& ESIC?

EPF: – Every Business entity that is employing more than 20 employees will mandatorily need to apply for EPF, Even a lesser no of employees may also warrant the registration if the same is provided in the Act.

ESIC: – If you have employed people who are drawing a salary less than Rs/-15000 a month (in 2013 it increased to Rs/-25000), then it is mandatory to cover them with ESIC. While Employee with contributes 1.75% of their salaries, the employer contribution will be 4.75%.

When taking an EPF& ESIC become mandatory?

EPF: – It becomes mandatory if you employ more than 20 employees at any time in the year. A point to note here that once you become eligible for EPF you will continue to be eligible, even the number of employees later become less than twenty.

ESIC: – If you employ a worker with a salary below Rs 25000/-

What is compliance after taking EPF& ESIC?

EPF:-After Registration you need to undertake compliance of:-

  • Deduction and payment of EPF contribution along with employers contributions
  • Filing of Return
  • Addition, Transfer, and deletion of EPF A/c on the movement of employees due to recruitment, Resignation, and retirement.

Is multi-location or branches needed to take separate EPF and ESIC Registrations?

In such a condition no new registration needs to be taken, you can simply add the branch or other locations and cover employees of that branch. However if the business entity is different like subsidiary etc, then separate registration need to be taken.

Service provided by AKT Associates: – Although EPF and ESIC is part of our payroll outsourcing package, you can engage us for the following work on a stand-alone basis as well

Contact our AKT Support desk @ 8080809061 or email support@aktassociates.com

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