ESI PF Registration

Running a business involves more than just overseeing tasks, boosting earnings, and enhancing brand visibility. Ensuring employees receive benefits that protect their health, happiness, and future is a crucial part of business ownership. ESI PF registration is one of the main compliance requirements for businesses operating in India. At Startup Club India, we provide you with the best ESI PF registration services. 

What is ESI and PF Registration?

Employee State Insurance or ESI is a complete social security scheme which provides benefits such as medical benefits, sickness benefits, maternity benefits, and unemployment allowances to employees. Employees’ State Insurance Corporation or ESIC regulated this scheme.

• Applicability: Businesses with at least 10 employees (or 20 in specific states) are required to register for ESI online to ensure employee benefits and legal compliance. This rule applies across different industries, including manufacturing, IT, retail, and many others.
• Employer Contribution: 3.25% of an employee’s wages.
• Employee Contribution: 0.75% of the employee’s wages.

ESI helps employees with free medical care, maternity leave benefits, and financial assistance during unemployment, offering much-needed security to the employees. 

Employee Provident Fund (EPF)

In simple words, Employee Provident Fund or EPF is a savings scheme run by the Employees’ Provident Fund Organisation or EPFO. It helps the employees save some amount for their retirement and gives them a lump sum amount upon leaving the organisation.    

• Applicability: Companies with 20 or more employees must register, but smaller businesses can also choose to enrol voluntarily.
• Employer Contribution: Employers contribute 12% of an employee’s basic salary and dearness allowance to the EPF.
• Employee Contribution: Employees contribute 12% of basic salary and dearness allowance to the EPF.

Along with retirement savings, the EPF scheme provides essential benefits like pensions and insurance, making it a key part of financial planning.

ESI and PF Registration Process

• Prepare required documents such as company PAN and GST certificate, address proof, a cancelled cheque of the company bank account, director/partner PAN, Aadhaar cards, employee salary details and attendance register.
• Register on EPFO and ESIC portal
• Submit the application and generate codes
• Maintain regular compliance 

Benefits of ESI and PF for Employers and Employees

The following are the benefits for Employers:

• Tax benefits: Employers can benefit from tax exemptions on the contributions they make towards ESI and EPF.
• Ensures EPFO compliance: Registrations which are done on time and payments ensure compliance and prevent penalties.
• Attracts skilled talent: Providing both ESI and PF benefits helps to attract and retain skilled employees.
• Reduces employee turnover: Long-term commitment and trust are built when social security is offered among employees. 
• Enhances brand reputation: Being a socially responsible employer enhances a company's reputation and builds positive relationships.

The following are the benefits for Employees:

• EPF benefits: Offers benefits such as retirement savings, coverage of insurance and pension as well. 
• ESI benefits: Employees benefit from free medical services, maternity leave, and unemployment allowances.  
• Insurance coverage: Under EDLI, employees and their families get insurance protection.
• Financial security: Both ESI and PF offer long-term security in case of medical or job-related challenges. 

Common compliance requirements under ESI and PF

Some of the common compliances required are:

• Timely contributions 
• Annual returns
• Employee KYC updates
• Record maintenance 
• Inspection readiness
• Penalties for non-compliance 

Ensuring ESI PF Registration in Delhi and across India is very important for businesses to stay compliant and provide employees with financial and social security. With the right ESI PF consultant, you can simplify the registration and compliance process. At Startup Club India, we offer expert guidance for ESI PF registration in India, making sure it is done smoothly. If you need a trusted ESI PF consultant in Delhi, we’re here to assist you.