Employee Provident Fund(epf)& EMPLOYEE STATE INSURANCE(esic)

Employee Provident Fund is a retirement benefit scheme that is available to all salaried employees. This scheme is applicable under the guidelines of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 as prescribed by Employees’ Provident Fund Organization (EPFO). Mandatory registration for all the companies/organizations that is 3 years old having employee strength more than 20. Voluntary registration is accepted for the units having less number of employees. Both employer and employee contribute in equal amount in this scheme. The contribution amount is 12% of Basic. 

While entire 12% of employee goes to PF, The employer's contribution is divided into the below mentioned categories:

1. Employees Provident Fund - 3.67 %

2. Employees' Pension Scheme (EPS) - 8.33 %

3. Employee's Deposit Link Insurance Scheme (EDLIS) -  0.50 %

4. EPF Admin Charges - 1.10 %

5. EDLIS Admin Charges - 0.01 %

Last three charges employer need to pay over & above PF contribution.

EPF is managed by The Employees' Provident Fund Organisation (EPFO) is a non-constitutional body that promotes employees to save funds for retirement. The organisation is governed by the Ministry of Labour and Employment, Government of India and was launched in 1951.

As part of the scheme (Universal Account Number) UAN a 12-digit number is allotted to each member by EPFO. The UAN of an employee remains the same even after he/she switches jobs. In the event of a job change, the member ID changes, and the new ID will be linked to the UAN. However, employees must activate their UAN in order to avail the services online.

We help our customers with:

1. Register New employee and generate UAN

2. Upload KYC

3. Upload Monthly Contributions and Generate Challan

4. Mark Exit employees

We provide all the above services at very reasonable rate.

To empower the social security for workers in independent India, the Employees State Insurance Act, 1948 was promulgated by the Government of India through the Parliament. With the industrial revolution during the 1950s, manufacturing industries began employing several workers to speed up manufacturing processes. The legislation’s objective was to provide a security system to these vast numbers of workers, especially during health-related eventualities.

The ESIC (Employees' State Insurance Corporation) is a state-run organization

ESI Scheme 

The ESI scheme was enacted by the Employees’ State Insurance Act of 1948. It’s a social security scheme that is designed to provide protection to employees during periods of inability. If an employee is sick, injured, disabled, or suffers a fatal death at work, the scheme extends medical care to the insured as well as his/her family. 

It is a self-financing scheme. Meaning, the funds for the premiums are made by both the employees and employers. The contributions are deducted from the monthly wages of the employee. 

The ESIC works similar to an insurance company. They collect funds as premiums from the employee (also contributed by the employer). The employee can then avail of various benefits from the scheme, not just for themselves but also for their family members. Just like the provident fund, contributions to the ESI are made by both the employee and employer.

Applicability of the ESI scheme 

An employee whose salary does not exceed Rs. 21,000 per month is eligible to be covered under the ESI scheme, as per the ESI Act of 1948. Employees of factories and other workplaces having 10 or more employees with wages up to Rs. 21,000 are eligible for health benefits under the ESI scheme. 

ESIC Contribution Rates

Employer Share  - 3.25%

Employee Share - 0.75%

Total                 - 4.00%

We help our customers with:

1. Register for ESIC

2. Register New employee on ESIC portal

3. Upload Monthly Contributions and Generate Challan

4. Mark Exit of employees

We provide all the above services at very reasonable rate.