- Mandatory registration if no. of employees are 20/10 or more in EPF/ESIC
Deduct PF and ESIC employee share from Salary and Deposit along with employer’s contribution within 15th of Every month - Registration of EPF and ESIC now comes under central labour act towards an initiative of Ease of Doing business. EPF and ESIC registration process is completely online without requirement of submission of any physical application documents either before the registration or after it. EPF and ESIC registration can be taken either combinedly or Separately in government portal shramsuvidha. w.e.f. 15th February 2020, EPF and ESIC registration comes as default with incorporation of a new company in India. However the previously registered companies shall follow same process of registration. If employees agreed, an employer can take voluntary registration even though no. of employees working are below the limit of 20/10 in EPF/ESIC
Require documents
- Certificate of Incorporation / Firm Registration Certificate
- MSME Certificate / Shop & Establishment Certificate/ GST ( any one)
- PAN Card Copy of the Entity
- Address of the company with address proof
- ID, Pan and Address proof of Proprietor / Director / Partner of the company
- Specimen Signature as per attached format
- Consent Letter as per attached format (In case EPF Voluntary Registration)
- Employee Details ( Name, Gender, Permanent/Temporary, Salary breakup of last month)
- Email address, Mobile number of Proprietor / Director / Partner of the company ( Email ID and Mobile should be unique for all)
- Any one Director’s / Partners or Proprietors Aadhar Card ( ensure Mobile no. linked with aadhar)
- Startup Certificate ( if the entity is Recognised Startup by DPIIT)
- For EPF-> Company having 20 or more employees, Salary upto Rs 15,000 PM
- For ESIC-> Company having 10 or more employees, Salary upto Rs 21,000 PM
ESIC contribution rates (Reduced w.e.f. 01/07/2019) – Employer Share – 3.25%, Employee Share – 0.75%, Total – 4%
PF and ESIC Return Due Date – on or before 15th of every month. Which is also the last date of Contribution deposit date.
Penalty-> Delayed remittance of ESIC /PF deposit will incur penal damages. DELAY upto 2 months – 5% pa, Between 2 to 4 months – 10% pa, Between 4 months to 6 months – 15% pa and Delay exceeding 6 months – 25% per annum (It may correspondingly go up to 100%)
PF Contribution Rate -> Employee’s Contribution Rate – 12% and Employers Contribution – 13%
Contribution payable on Maximum wage ceiling of Rs 15,000/- in case of PF and RS 21,000/- in case of ESIC.
Wages here covers Basic plus DA