What is Providend Fund?

• A provident fund is a retirement fund run by the government.
• A provident fund is a government managed and mandatory retirement savings scheme in India.
• They are generally compulsory, often through taxes, and are funded by both employer and employee contributions.
• Governments set the rules regarding withdrawals, including minimum age and withdrawal amount.
• Employer and employee both contributing @ 12% on basic salary.
• Eligibility:
  • Organizations with 20 or more employees are required by law to register for the PF scheme, while those with fewer than 20 employees can also register voluntarily.
  • It is mandatory for you to be opened an EPF account by your employer if gross salary is upto Rs 15,000/-  per month.
• Documents required for PF Registration:
  • PAN Card and Aadhar Card of Applicant
  • Address Proof (Rent Agreement if property is rented and Electricity Bill)
  • Cancel Cheque or Bank Statement
  • Total Employee strength
  • Partner/Directors details

What is Employee State Insurance (ESI)?

• The Employees' State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees' State Insurance Act.
• It is designed to accomplish the task of protecting 'employees' as defined in the Employees' State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.
• The rate of contribution by employer is 4.75% of the wages payable to employees. The employees' contribution is at the rate of 1.75% of the wages payable to an employee.
• It is ceiling limit for applicability wages to Rs 21,000/- per month.
• Eligibility:
  • Organizations with more than 10 employees are required by law to register for the ESI scheme, while those with fewer than 10 employees can also register voluntarily.
  • It is mandatory for you to be opened an ESI account by your employer if gross salary is upto Rs 21,000/-  per month.
• Documents required for ESI Registration:
  • PAN Card and Aadhar Card of Applicant
  • Address Proof (Rent Agreement if property is rented and Electricity Bill)
  • The registration certificate or license issued by - Shops and Establishment Act / Factories Act
  • INC, MOA and AOA (In case of company)
  • Partnership Deed (In case of Partnership Firm)
  • Cancel Cheque or Bank Statement
  • Total Employee strength
  • Partner/Directors details