EPF and ESI Registration & Compliance
Purpose of EPF and ESI Compliance
Social Security for Employees: Ensures financial and health benefits for employees and their dependents.
Medical and Disability Benefits: ESI provides access to medical care and compensation for illness, maternity, and injuries.
Legal Compliance: Mandatory for eligible employers and employees to avoid legal repercussions.
Employee Retention: Enhances job satisfaction and trust through welfare benefits.
EPF Compliance Requirements
Eligibility and Applicability
- Mandatory for establishments with 20+ employees.
- Employee and employer each contribute 12% of basic salary + DA.
Registration Process
- Register on EPFO portal and generate establishment code.
- Submit employee details including salary and UAN.
Monthly and Annual Filing
- Monthly returns and payment by 15th of every month.
- Annual filing via Form 3A and 6A by April.
Documentation
- Company PAN, incorporation certificate, employee ID and salary records.
ESI Compliance Requirements
Eligibility and Applicability
- Applicable to establishments with 10+ employees and salary ≤ ₹21,000.
- Employee contributes 0.75%, employer contributes 3.25%.
Registration Process
- Register on ESIC portal and obtain Employer Code.
- Generate and issue ESIC numbers to employees.
Monthly and Half-Yearly Filing
- Monthly ESI contributions and returns by 15th.
- Half-yearly filings: April–September and October–March.
Documentation
- Company PAN, registration certificates, Aadhaar, salary records, medical records.
Process
Step 1: Registration
Register on EPFO and ESIC portals, enter company and employee details, generate codes and IDs.
Step 2: Monthly Contributions
Calculate and deposit EPF/ESI contributions monthly by the 15th.
Step 3: Filing Returns
File monthly returns and annual/half-yearly filings as required.
Step 4: Record Maintenance
Maintain updated records of all filings, payments, and employee status changes.
Documentation Required
- Company Documents: PAN, registration certificates, bank details, business proof.
- Employee Documents: Aadhaar, PAN, address proof, salary details.
- Contribution Records: Wage and contribution data.
- Medical/Accident Reports (ESI): For supporting claims.
Charges
- Registration Consultant Fee: ₹1,500 – ₹5,000 depending on complexity.
- Monthly Compliance Fee: Starting ₹500/month, based on employee count.
Timeline
- Registration: Usually completed in 5–10 working days.
- Monthly Returns: Due by 15th of every month.
- Annual/Half-Yearly Filings: As per statutory timelines.
Penalties for Non-Compliance
- Late Filing: Attracts interest and penalties under EPF/ESI Acts.
- Legal Action: May lead to fines and prosecution for employers.
- Loss of Benefits: Employees may lose access to benefits due to non-compliance.
Benefits of Compliance
- Employee Welfare: Assures long-term savings and medical care.
- Legal Protection: Reduces risks of penalties and legal action.
- Credibility: Boosts employer reputation.
- Retention: Improved employee satisfaction and loyalty.