The Haryana Labour Welfare Fund
March 1, 2024
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A social welfare law known as the Employees State Insurance Act of 1948 was passed with the intention of giving workers certain benefits in the event of illness, pregnancy, or work-related accident. Employees covered by the Act will get financial benefits, health insurance, maternity benefits, pensions for surviving employees' families, and compensation for illnesses and injuries that result in death.
1. Registration: Under the ESIC Act, employers with ten or more employees (or twenty or more in certain states) must register within fifteen days of being liable.
2-Documents Required for Registration:
3-Monthly Contributions: Both employers and workers make contributions to the ESIC fund. At now, the company contributes 3.25% of the employee’s wages, while the employee contributes 0.75% of their wages.
4-Filing of Returns: Employers must file monthly ESIC returns (Form 5) and annual returns (Form 6) to the ESIC.
5-Compliance: ESIC regulations must be followed, precise records must be kept, and payments must be paid on time.
Businesses in India must register with the Provident Fund (PF) and Employee State Insurance Corporation (ESIC) and abide by their requirements in order to guarantee employee welfare and legal compliance. The EMPLOYEE’S PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 was primarily passed to provide for the post-retirement and post-death needs of workers and their dependents.
Here is a quick summary of the PF and ESIC registration procedure and essential compliance requirements:
1-Registration: Employers with 20 or more employees are required to register for the Employees’ Provident Fund Organisation (EPFO) and obtain a PF registration number.
2-Documents Required for Registration:
3-Monthly Contributions: Employers and employees contribute a certain percentage of the employee’s salary towards the PF fund. The current contribution rate is 12% of the employee’s basic salary from both the employer and the employee.
4-Filing of Returns: Employers must file monthly PF returns (Form 12A) and annual returns (Form 6A) to the EPFO.
5-Compliance: Compliance involves maintaining accurate records, timely payment of PF contributions, and adherence to EPF regulations.
PF and ESIC have online portals for registration, payment, and filing of returns, making the process relatively streamlined. However, it’s essential for businesses to stay updated with any changes in regulations and fulfill their obligations to avoid penalties or legal issues. It’s advisable to consult with a professional or legal advisor for specific guidance tailored to your business’s needs.
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