THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
An Act to Provide for the institution of provident funds, Pension Fund and deposit- linked insurance fund for employees in factories and other establishments.
Section 1(3) of the act defines the Eligibility criteria for EPF registration:
1. Establishment which is a factory engaged in any industry having 20 or more persons, and
2. To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify in this behalf.
3. An employee whose pay does not exceeds Rs. 15000/- per month.
Section 2(g) : “Factory” means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power.
1. Accumulation plus interest upon retirement, resignation, death.
2. Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.
3. An amount of deposit in provident fund is eligible for tax exemption under Section 80C of Income Tax Act,1961.
|EPF contribution rates|
|Employer Share||Difference of Employee share and Pension Contribution|
|Employee Share||12% /10%* of the wages|
NOTE: 1. *10% rate is applicable for
Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
2. The contributions are payable on maximum wage ceiling of Rs. 15000/-
3. For an International Worker, wage ceiling of 15000/- is not applicable.
THE EMPLOYEES’ STATE INSURANCE ACT, 1948
An Act to provide for certain benefits to employees in case of sickness, maternity and ‘employment injury’ and to make provision for certain other matters in relation thereto.
As per Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
*Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh.
The wage limit for coverage under the Act effective from 01/01/2017 is Rs.21,000/- per month [Rs. 25,000/- per month in the case of persons with disability].
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, newspaper establishments, establishments engaged in Insurance Business, Non Banking Financial Companies, Port Trust, Airport Authorities and Warehousing establishments employing 10 or more persons.
Further under Section 1(5) of the Act, the Scheme has been extended to Private Medical Institutions, Educational institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10* or more persons in certain States/UTs.
1. Full medical care is provided to an Insured person and his family members from the day he enters insurable employment.
2. Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable.
3. Maternity Benefit for confinement/pregnancy is payable for Twenty Six weeks.
4. If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
5. Funeral expenses and Old age care medical expenses.
6. Expenses in case of disability of the employee.
|ESIC contribution rates (w.e.f. 01.07.2019)|
|Employer Share||3.25% of the wages|
|Employee Share||0.75% of the wages|
NOTE: Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Registration for EPFO & ESIC for NEW Public & Private Limited Companies and One Person Company has been stopped on Shram Suvidha Portal from 15.02.2020.
Registration is only available through MCA portal (www.mca.qov.in through Spice+ and AGILE-PRO e-forms) only at the time of incorporation.
However, the above new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.
Shram Suvidha Portal is an ‘Ease of Doing Business’ Labour Law Reform initiative by Ministry of Labour & Employment, Government of India. It was launched on 16 October 2014 with a facility to get all kinds of registrations and submit returns in context of labour laws at a single online window.
Before that Registration of PF and ESIC used to happen on their particular website only.
You can take a common registration for both PF and ESIC at unified Shram Suvidha Portal.
1. Firstly, you must create an account in the name of applicant on portal.
2. Then click tab ‘Under EPF-ESIC Registration’ which is given on right side.
3. An application for registration will appear, fill all necessary details and submit the application.
4. DSC or E-Signing is required for Final submission.
5. You’ll get a registration mail along with your Login Credentials on your registered Mail-ID.
1. Copy of registration certificate or licenses in name of company.
2. PAN Card of the Business Entity as well as all the Employees working under the entity.
3. Number of Employees and their details
4. Primary Business Type of entity.
5. A Specimen of Signature.
7. Scanned copy of cancelled Cheque
8. Proof of Address of business entity.
9. Setup Proof
10. Licence Proof
11. Lease deed if Hired/Rented/leased
Note: No physical documents are to be submitted to EPFO and ESIC office for registration and also no physical visit is required. All the documents are to be uploaded online only at the time of filling application for registration.
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