All About PF and ESIC Registration Benefits
Employee State Insurance accomplished by the Employee State Insurance Corporation which is an independent firm under the Ministry of Labour and Employment.
what is esi and pf?
Employee State Insurance Corporation scheme is a self-financing public safety and health insurance scheme for Indian employees. Such help is given during the time of inability of the workers to work due to sickness, maternity, or employment injury.
The employees are provided with a massive variety of medical, financial, and other benefits from the employer. Every company having employees more than 10 employees and in some state number of employees defines as 20 employees and the maximum salary more than Rs. 15000 must mandatorily register itself with the ESIC.
Eligibility of ESIC registration
ESIC registration is mandatory where at least 10 employees are employed for road transport, hotels, cinemas, newspaper, shops, educational/medical institutions, but the limit has been extending to 20 in various states
Workers/ employees whose per month wages 15000 are covered under the ESIC scheme.
Benefits of ESIC registration
Benefits provided to employees under ESIC registration are described as:
- ESIC scheme provides the benefits of unemployment allowances, monthly cash stipend for a period of a maximum of 24 months in case of unintentional loss of employment or permanent invalidity due to non-employment injury.
- In the case of death due to injury at the time of employment, ESIC benefits provide to the dependents by monthly payments among dependents.
- In the case of temporary disablement, the ESIC scheme provides the monthly payment till the injury recover. In the case of permanent disablement, the ESIC scheme provides the monthly payment for the whole life.
- ESIC scheme also provides the maternity benefits during the maternity leave in the way of 100% of average daily wages in the form of the cash up to 26weeks in case of confinement and in the case of miscarriage 6 weeks.
- During medical leave, the ESIC scheme provides the benefits of 70% of average daily wages up to 91 days in two successive benefits periods.
- ESIC provides the benefits of a medical care facility for the employees and the employee's family.
Documents required for ESIC registration
Documents required for the ESIC registration are described:
- Certificate of Incorporation of the company in case of a private limited company
- License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act.
- Certificate of Registration for every entity and for the commencement of production of factories
- Complete details of employees along with their monthly compensation
- Detail of partners, shareholders, and directors of the company or establishment
- The company's bank statements along with sufficient evidence about the commencement of operations
- Address proof with the latest electricity bill and PAN Card of the business establishment or company
Now let's talk about PF registration
Employee provident fund is a scheme providing a financial profit to all remunerated persons after their retirement. Any body corporate/organization having more than the twenty number of employees must register under the Employee provident fund.
Under the Employee provident fund, the amount is deducted from the monthly salary and transfer into the Employee provident fund account. The amount deposited under the EPF account is given to the employees after they retire from the organization. All the EPFO activities are regulated and controlled under the Ministry of Labour and employment
Eligibility for PF registration
Employee provident fund is available for both the Private and Public organizations which define anyone can become a member under EPF.
Any organization having a number of employees at least 20 employees are deemed to give the benefits of EPF to its employees. And the employees can avail several benefits like Pension benefits, Insurance benefits.
Rate of interest of EPF
The interest rate for EPF was 8.55% for Financial Year 2018 and has been increased to 8.65% for the financial year 2019.
EPF contribution is deposited on a monthly basis, and the interest on these contributions is calculated on yearly basis as per the defined rates and the interest will be deposited into the EPF account.
Employer’s contribution to EPF
The rate of contribution is 12% out of the minimum remuneration of Rs 15,000 which is Rs 1800 per month. Both organization and the employees will contribute Rs. 1800 to the EPF.
To wrap up for any further information you may contact on the below-mentioned details:
Email Id Swati@neusourcestartup.com and Phone Number 9540026175.
The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.
“Starting Any Business Is A Formidable Journey Of A Lifetime!” NEUSOURCE ‘The Leader of Business registration’ clears the way for success in the present era by helping new startups. LET's GET STARTED!!