PF & ESIC RETURN FILING

PF and ESIC compliance involves adhering to the regulations set by the government for provident fund and employee state insurance contributions, ensuring employees' financial security.

Employers with eligible employees need to comply with PF and ESIC regulations and make the required contributions.

PF contributions are typically a percentage of the employee's salary, while ESIC contributions are a percentage shared between the employer and the employee.

PF provides a retirement corpus, while ESIC offers medical and financial assistance during health-related contingencies.

Employees can't opt out of PF, but they can be exempt from ESIC under certain conditions.

PF and ESIC payments should be made monthly, generally within 15 days after the end of the month.

Penalties for non-compliance can include fines, legal actions, and disqualification from government tenders and contracts.

Yes, both PF and ESIC filings can be done online through their respective online portals.

This scheme is specially designed by the government to provide full medical and financial assistance to the employee who is registered under the ESI Act. This scheme helps the employee to get compensation of the loss of his/her wage during his/her absence from work due to sickness, health issue, maternity, or employment inquiry. The benefits listed in the scheme extends to insured person’s family members also.

The scheme is primarily designed out of contribution made by employer & employee every month at a fixed percentage of the salary paid. Under this scheme, State Government also contributes 1/8th Share of the total cost of the Medical Assistance.

No, the scheme will remain enforced till he continues to be part of the same organization irrespective of the fact that he/ she is earning more salary than 21000/- per month.

To verify the details of the employee, the ESI Scheme issues a Unique Identification number to each employee or worker which is called as Insurance number and the same can be used for all operational purposes.

The universal rule to be qualified for ESI (Employees’ State Insurance) registration is to have 10 or more employees/workers. However, in few states and regions, ESI is applicable only if there are more than 20 employees.

Once the company/entity falls under the eligibility criteria, the registration needs to be taken within 15 days from the date it become eligible. This is the statutory responsibility of the shop/establishment or an entity.

There are few documents which an entity registered under ESIC Scheme needs to maintain regularly for filing ESI returns. They are as under:

• Attendance register
• Form 6
• Register of wages
• Register of any accidents on the premises
• Inspection book
• Monthly challans and returns submitted for ESI

a) Employer’s contribution: A sum equal to 4.75% of the wages payable to an employee, rounded off to the next higher rupee

b) Employee’s contribution: A sum equal to 1.75% of the wages payable to an employee, rounded to the next higher rupee;

In compliance with the Notification published in the Gazette of India dated 6.10.2016, the rates of employer’s and employee contribution for the initial twenty-four months from the date of implementation of the Act are subject to the following:-

(a) Employer’s contribution – A sum (rounded to the next higher rupee) equal to 3% of the wages payable to an employee; and

(b) Employee’s contribution – A sum (rounded to the next higher rupee) equal to 1% of the wages payable to an employee.

Every entity covered under this scheme needs to comply with mandatory filing such as regular deposit of monthly contribution to file half-yearly returns and report to ESIC authority for any changes or amendment made in business activity, address, ownership and management, etc.

No, the benefits under this scheme is non-transferable.

In respect of an employee the contribution shall be paid in a properly registered bank of the Company, within 21 days of the last day of the calendar month in which the contribution is due for any period of wage (Reg. 29 & 31).