Employee Provident Fund(EPF) and Employee State Insurance Corporations(ESIC)
If you are planning to start a business venture or want to start a Manpower supply business or Security Guard services, you need to comply with certain labor and employee welfare rules. EPF and ESIC are two of the imported work welfare law which you should be incorporated. How about we see some essential focuses on them.
What is the Purpose for EPF & ESIC?
EPF: – Employee provident fund or EPF is a measure of saving for the employees, which can be used as a supporting income on retirement, or as a measure of immediate relief in case of an unfortunate situation. This can likewise be a friend in need for workers if there should be an occurrence of a house buy, Marriage of their kids or some other prerequisites as referenced in the EPF MA 1952 where partial withdrawal is allowed.
ESIC: – Employee State Insurance Corporation is a mandatory insurance scheme for workers who are drawing less than Rs/- 15000 in a month (From 2013 this ceiling is increased to Rs 25000/-). This compulsory insurance also helps employers to cover up their contingent liability of treatment and medical expenses, which may be incurred if an accident has happened at the business premises or factory.
Then again, it offers a financial and restorative affirmation to laborers and its wards. Other than giving health advantages to laborers and its wards it too guarantees specialist from brief or lasting disablement and infection.
Who needs to apply for EPF& ESIC?
EPF: – Every BusEach Business entity that is utilizing in excess of 20 representatives will compulsorily need to apply for EPF, Even a lesser no of representatives may likewise warrant the enlistment if the same is provided in the Act.
ESIC: – If you have employed people who are drawing a salary less than Rs/-15000 a month (in 2013 it increased to Rs/-25000), then it is mandatory to cover them with ESIC. While Employee with contributes 1.75% of their salaries, the employer contribution will be 4.75%.
When taking an EPF& ESIC become mandatory?
EPF: –It progresses toward becoming mandatory if you utilize in excess of 20 representatives at whenever in the year. A point to note here that once you become qualified for EPFyou will keep on being qualified, even the quantity of workers later become under twenty.
ESIC: – If you employ a worker with a salary below Rs 25000/-
What is compliance after taking EPF& ESIC?
EPF:-After Registration you need to undertake compliance of:-
- Finding and installment of EPF commitment alongside managers commitments
- Filing of Return
- Expansion, Transfer, and cancellation of EPF A/c on the development of representatives because of enrollment, Resignation, and retirement.
Is multi-location or branches needed to take separate EPF and ESIC Registrations?
In such a condition no new enlistment should be taken, you can basically include the branch or different areas and spread workers of that branch. However if the business entity is different like subsidiary etc, then separate registration needs to be taken.
Service provided by AKT Associates: – Although EPF and ESIC is part of our payroll outsourcing package, you can engage us for the following work on a stand-alone basis as well
- Registration of EPF and ESIC
- Calculation, Payment and Return filing
- Audit assistance for EPF
- Notice or Scrutiny for EPF handling
Contact our AKT Support desk @ 8080809061 or email support@aktassociates.com