EPF REGISTRATION:- Organization with 20 or moré employees are required by law to register for EPF

Scheme within one month of attending the minimum strength of 20 employees. Small organizations
which do not have minimum strength can register themselves voluntarily. If an employee drawing
salary more than 15000 per month , it is not mandatory for that employee to become a member of
EPF Scheme. ESI REGISTRATION:- ESI Registration is to be mandatorily done when the employers are
having more than 10 employees but it applies to employees with low earnings. As per the act, all
employees whose earnings are Rs. 15000 or less per month, it is required for them to
contribute 0.75% of their pay towards the ESI and 3.25% by the company towards ESI. For
successful , ESI Registration the employer will need to pay the advance contribution for 6 months.

Benefits of ESIC Registration The benefits of registering under this scheme are varied.

Some of them are:

 Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness and
which lasts for a maximum of 91 days in any year.
 Medical benefits to an employee and his family members. Maternity benefit to the women
who are pregnant (paid leaves).
 If the death of the employee happens while on work – 90% of the salary is given to his
dependents in the form of a monthly payment after the death of the employee.
 Same as above in case of disability of the employee.
 Funeral expenses.
 Old age medical care expenses.

BENEFITS OF PF REGISTRATION:-

The PF Scheme offers a pre-fixed interest on deposit held with EPF India. Around 8.5% of
Employer’s contribution is directed towards the Employee Pension Scheme. That help to
build a healthy retirement corpus of employees. Amount from EPF fund can be withdraw by
employee in any emergency or uncertainty. Earnings generated through EPF are exempted
from Tax. Registration for ESIC and EPF will be mandatory for all new companies to be taken
at the time of incorporation with effect from February 23, 2020, and no separate ESIC and
EPF registrations will be issued by shramsuvidha portal to any company.

Employees Provident Fund and Employees State Insurance are two social security scheme availably
to the working class in India. These are the central government schemes, comes under the
jurisdiction of The Ministry of Labour and Employment.  Both the schemes introduced with the
objective to improve the working class condition. It’s the employer’s duty to register under both the
schemes. Employees Provident Fund is a saving fund that accumulates during the employment
tenure of an employee. Its objective is to manage the provident fund of the government and private
sector employees, helping them financially on their retirement. Employees State Insurance is a self-
financing social security and health insurance scheme offering medical and disability benefits to the
Indian workers. It aims to provide medical and cash benefits to the employees and their families
through their large network of offices, hospitals and dispensaries throughout the country. EPF and
ESI focus on undertaking the activities that ultimately provide social security to the members of the
fund.  Who needs to register for EPF and ESI EPF any establishment which is a factory engaged in any
industry, with 20 or more employees. Employees having basic salary max up to Rupees 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.
ESI all the establishments which are covered units. Covered units include industry, hospital,
restaurant, shop, theatre, pharmacy, hotel etc. In ESI employee strength shall be 10 or more. The
wage limit of employees is maximum up to Rupees 21000 for ESI coverage. 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. Total
4% is contributed to ESI. 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 Shram Suvidha.

Due date for payment of EPF AND ESI 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 Penalty, if
delay in payment and 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. Determination of moneys due from
the employer In case where a dispute arise regarding the applicability of the EPF Act, that will be
decided by the commission and also determine the amount due from any employer under any
provision of the act. Commissioner may conduct such inquiry as may deems necessary.
Commissioner means an officer for EPF appointed by the government. The officer conducting the
inquiry shall, have the same power as are vested in a court under the Code of Civil Procedure 1908,
for trying a suit and also deemed to be a judicial proceeding as under Indian Penal Code 1860. No
order shall be passed without giving the reasonable opportunity of representing their case. 
Remedies if ex-parte order passed If an order is passed against the employer ex-parte, he may, within
3 months from the date of communication of such order, apply to the officer for setting aside such
order and if he satisfies the officer that the show- cause notice was not duly served or that he was
prevented by any sufficient cause from appearing when the inquiry was held. The officer shall make
an order setting aside his earlier order and shall appoint a date for proceeding with the inquiry.
Review of order passed by the commission Any person aggrieved by the order made, but no appeal
has been preferred under act, and who, from discovery of new and important matter or evidence
which, after the exercise of due diligence was not within his knowledge or could not be produced by
him at the time of face of the record or for any other sufficient reason, desires to obtain a review to
obtain a review of such order may apply for a review of that order to the officer who passed the
order. Application for review either accepted or rejected No appeal shall lies against the order of the
officer rejecting the review application, but an appeal lies against the order passed under review as if
the order passed is the original order passed by officer. Appeal to Tribunal  Any person aggrieved by a
notification issued by the central government or by any order passed by the authority can prefer an
appeal to a tribunal against such notification or order. Every appeal shall be filled within time along
with fees as prescribed. Tribunal A tribunal shall have the power to regulate its own procedure in all
matters arising out of the exercise of its power or of the discharge of its function. Orders of Tribunal
A tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such order
thereon as it thinks fit, confirming, modifying or annulling the order appealed against or may refer
the case back to the authority which passed such order with such direction as the tribunal may think
fit, for a fresh adjudication or order, as the case may be after taking additional evidence, if necessary.
Any order made by the tribunal finally disposing of an appeal shall not be questioned in any court of
law. No appeal by the employer shall be entertained by the tribunal unless he has deposited with it
75% of the amount due from him as determined by an officer. Deposit of 75% is the pre-condition for
maintaining appeal.