EPF And ESI Registration

EPF And ESI Registration

Who Needs to register under EPF and ESIC?

For EPF any establishment which is a factory engaged in any industry, with 20 or more employees.

Employees having basic salary max up to Rs 15000 + dearness allowance (if any) of every month.

Establishments having employees less than 20 can also register under EPF only if both employer and employee are willing to do so.

For ESIC all the establishments which are covered units. Covered units include industry, hospital, restaurant, shop theater,pharmacy, hotel etc.

In ESIC employee strength shall be 10 or more.

The wage limit of employees is maximum up to Rs 21000 for ESIC coverage.

Non applicability of EPF and ESIC

Organization where registration not required for Employee Provident Fund are :-

 (a) establishments registered under the Co-operative Societies Act, 1912,

       (b) where employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the Government

Employees State Insurance is not required for :-

      (a) the seasonal industries.

      (b) Industry with less than 10 employees.

Benefits of registration under EPF and ESI

  • Registration under EPF AND ESI will make the institute more reliable and also boost the brand value of the institute.
  • ESI and EPF both will be registered under the common portal.
  • It helps in the incorporation of new companies.
  • Saves the employer from penal provisions.
  • Provides financial security to the employees ,if employees feel safe they will work efficiently.
  • Gets competitive advantages.
  • No Income Tax on the amount paid by the employer.
  • No Income Tax on the employees hand.
  • The EPF intends to generate maximum return on the investment.

WHY Registration is required under ESI and EPF

The Ministry of Corporate Affairs has made significant amendments to the provisions of companies  with the aim of promoting and easing the  commercial compliance among the Indian companies.

The Ministry of Corporate Affairs  introduced a new compact  e-form SPICe + (Simplified Proforma For Incorporating a Company Electrically) . To this effect, all the new companies are mandatory to register under EPF and ESIC.

The Ministry Of Labour And Employment  announced that new companies registered under EPF and ESIC will  be registered under The Ministry Of Corporate Affairs.

Employee Provident Fund and Employee State Insurance schemes empower the employees by providing financial  aid to them at the time of need. This builds trust between the employee and the employer. Production in any industry depends on the efficiency of the workers. If workers are satisfied they give their best for the institution and the output definitely increases.

Employers and Employee contribution for EPF

Employer and employee both will  contribute equally. Employer pays 12% of the basic salary and the same is paid by the employee.

From the employer’s share of contribution,8.33% is contributed towards the employer’s Pension Scheme and the remaining 3.67% is contributed to the EPF Scheme.

In case of a small establishment, the employer contributes 10% of the basic salary.


Employer and Employee contribution for ESI

Employer and Employee contribute  different shares for ESI. Employer’s share is 3.25% of wages payable,employee’s share is 0.75% of wages payable.


EPF and ESI Compliance after registration

Once a commercial unit obtains EPF AND ESI registration, the employer needs to complete the responsibilities of payment, challan return etc. And also keep the record updated on the web portal of the scheme.

Due date for payment of EPF AND ESI

Provident fund payment must be paid by all the entities registered under EPF and ESI on or before the 15th of every month. After that penalty will be  imposed on the employer.

Due date for Electronic Challan – Cum – Return

Provident fund return must be filed by all the entities registered under EPF and ESI on or before the 15th  of every month  .

EPF final return is due on the 25th April of the year ended on 31st March.

ESI return is filed Bi- annually

April to September before 11 November

October to March before 11 May

Penalty on late payment of ESI and EPF

There is a penalty if delay in payment,that penalty depends upon the period of delay penalty starts from 5% to 25%  of the amount. Payment should be paid before the 15th of every month. 

Penalty of 12% per year interest for each day of delay in payment of contribution.

Penalty in case of Challan payment failure, the following penalties shall be incurred

  • 5% interest per annum for delay of up to 2 months
  • 10% interest per annum for a delay of 2 – 4 months
  • 15% interest per annum for a delay of 4 – 6 months
  • 25% interest per annum for a delay of more than 6 months.

Documents required for registration under ESI and EPF

Establishment documents

  • Name of the organization
  • Address of the organization
  • Incorporation date of the organization
  • Any incorporation deed
  • Pan card of the organization
  • Licence of the organization
  • Type of organization
  • KYC documents of the organization
  • Any Utility bill water, electricity,


Contact details

  • Mobile Number
  • Email Address

Employers detail 

  • Name
  • Address,
  • Pan Card

Employees details

  • Employee strength
  • Wages
  • Type of Activities
  • Mode of Payment

Any further document if required


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