PF and ESIC Registration

1. PF (Provident Fund) Registration

What is PF?

PF is governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
It is a social security scheme to ensure financial savings for employees post-retirement.
Managed by the Employees’ Provident Fund Organisation (EPFO).

Who needs to register?

Mandatory for companies with 20 or more employees.
All employees drawing salary up to ₹15,000 per month are automatically covered. Voluntary coverage is possible for higher salaries.

Contribution Details

Employee contribution: 12% of basic salary + DA (deducted from salary)
Employer contribution: 12% of basic salary + DA
Out of this, 3.67% goes to EPF and 8.33% to EPS (Employee Pension Scheme).
Government also contributes indirectly via pension schemes.

Benefits

Retirement Savings: Accumulation in PF account earns interest (currently 8-8.5% annually).
Pension: EPS provides pension after retirement (58 years onwards).
Insurance: PF also includes EDLI (Employee Deposit Linked Insurance).
Tax Benefits: Employee contributions are tax-deductible under Section 80C.

PF Registration Process

Employer Registration:
Go to EPFO portal: https://unifiedportal-mem.epfindia.gov.in/epfo/
Fill Form 1 (Basic details of establishment).
Submit KYC documents:
- Company PAN
- Certificate of Incorporation
- Address proof
- Bank account details
- Details of directors/partners
Employee Registration:
Each employee is issued a UAN (Universal Account Number).
PF account is linked to UAN for withdrawals, transfers, and EPF balance.

Compliance

Monthly contribution: Employer must deposit PF within 15th of next month.
Return filing: Form Challan 5/IT for PF remittance and Form 12B for member details.
Annual return: Form 3A (consolidated member contributions).

Penalties for non-compliance

Delay in PF contribution: 15% per annum interest
Non-registration of establishment: Fine up to ₹5,000 or imprisonment
Non-maintenance of records: Fine ₹5,000

2. ESIC (Employees’ State Insurance Corporation) Registration

What is ESIC?

Governed by the Employees’ State Insurance Act, 1948.
A social security and health insurance scheme for Indian workers.
Managed by ESIC, Ministry of Labour & Employment.

Who needs to register?

Establishments with 10 or more employees (in most states) with salary ≤ ₹21,000 per month.
Voluntary coverage possible for higher salary employees.

Contribution Details

Employee contribution: 0.75% of wages
Employer contribution: 3.25% of wages (subject to change; check latest notification)

Benefits

Medical Benefits: Free medical care for employees and family.
Sickness Benefit: Cash compensation during illness (70% of wages).
Maternity Benefit: Paid leave for female employees.
Disablement & Dependent Benefit: Compensation in case of injury/death due to employment.
Funeral Expenses: Lump sum payment on death.

ESIC Registration Process

Employer Registration:
Go to ESIC portal: https://www.esic.in/
Fill Establishment Registration Form with:
- Company PAN, TAN
- Certificate of Incorporation
- Employee details
- Bank account
- Address proof
Submit online.

Employee Registration:
Each employee gets an ESI Number (IP Number).
Employee gets an ESI Card for medical and other benefits.

Compliance

Monthly Contribution: Employer deposits contributions by 15th of next month.
Return filing: Form Return of Contribution with employee details.
Medical & Benefits: Maintain records for claims and audits.

Penalties

Delay in payment: 10% of contribution as fine.
Non-registration: Fine up to ₹10,000.
Fraudulent claims: Imprisonment or fine as per ESIC Act.

Key Differences Between PF and ESIC

Feature	PF	ESIC
Act	EPF & Misc. Provisions Act 1952	ESI Act 1948
Coverage	Employees up to ₹15,000/month	Employees up to ₹21,000/month
Contribution	12% employee + 12% employer	0.75% employee + 3.25% employer
Benefits	Pension, retirement savings, insurance	Medical, sickness, maternity, disablement, dependent benefits
Eligibility	≥20 employees	≥10 employees (in most states)