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Employee Provident Fund Scheme

The Employees' Provident Fund Organisation, India, is one of the largest provident fund institutions in the world in terms of members and amount of financial transactions that it has been carrying on. Employees' Provident Fund Scheme takes care of following demands of the members:
• Medical Care
• Housing
• Retirement
• Family obligation
• Education of Children
• Financing of Insurance Polices


CONTRIBUTION UNDER PROVIDENT FUND:

As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The applicant is assigned a social security number by filling an application. The Provident Fund registration points on delinquent reporting, underreporting, or non-reporting of workforce size. If the work force size exceeds 20, then Provident Fund registration becomes mandatory. The employer is required to provide relevant information to the concerned regional Provident Fund Organization (EPFO) in specified manner for allotment of Establishment Code Number. No registration is to be made for the employees. Nevertheless all eligible employees are needed to become members of the Fund and individual account number is allotted by the employer in specified manner. As per an internal circular, if application is complete in all respect, then the code number is to be allotted within 3 days from the date of submission. However, in many cases applicants have received the intimation letter with the code number in 12 to 15 days. An online application facility is not provided so far.


EMPLOYEES’ STATE INSURANCE (ESI)

The enactment of Employees’ State Insurance Act, 1948 anticipate an integrated need based on social insurance scheme that would protect the interest of workers in crises such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury leading to loss of wages or earning capacity. The Act also guarantees to render fairly good medical care to workers and their immediate dependants. The Act was originally applicable to those non-seasonal factories using power and employing 20 or more persons; but it is now applicable to all non-seasonal power using factories employing 10 or more persons and all non-power using factories employing 20 or more persons. The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).


CONTRIBUTION UNDER ESI:

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act .The contribution payable to the Corporation in respect of an employee shall include employer’s contribution and employee’s contribution at a prescribed rate. Revisions in rates are made from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.50/- are granted exemption from payment of contribution. However employers will not get such exemptions from their contribution in respect of these employees. Registration is the process through which every employer/factory and every employee employed for wages are analyzed for the purpose of the medical insurance scheme and their individual records are set up for them. As per the Employees' State Insurance (General), Form 01 is the form needed to be submitted by Employer for registration. The Employer Code Number will be issued within 3 days to a week. Within next two days, an "intimation letter" containing the Code Number is sent by post to the employer.

ESI REGISTRATION REQUIREMENTS CHECK LIST


• Cancelled Cheque and Copy of Bank Statements
• List of Employees ( Date of joining, Place of Duty, Salary )
• Month wise List of Number of Employees from the date of Start
• Copy of PAN Card of Firm/Company and Owners
• Residence Proof ( Voter Card/ Passport/ Ration Card/ Driving Licence)
• Proof of Registration of Establishment
• Partnership deed and Copy of Registration
• List of Clients
• Copies of Work Orders/ Agreements ( Minimum Two )
• Copies of Attendance/ Wage Sheet for the Month of Coverage
• Memorandum of Association/ Articles of Association
• Date of Application if Applied Earlier.

PROVIDENT FUND WORKS

New Company Registration


• Filing of necessary papers and obtaining PF registration code number for new establishment within specified time as per Act.
• Form 5A (Return of ownership)
• Form 9 (Revised)
• Submission of Specimen Signature
Monthly Process
• Preparation of monthly Challan for EPF & deposited into bank within prescribed time as per Act.
• Prepare Monthly Return :
• Form 12A (Revised)
• Form -5 (New Joinees)
• Form-10 (Resigned)
• Preparation of Form- 7(IF)
• PF Eligibility Register
• Maintenance of all statutory registers needed by the PF authorities.
• Preparation of Monthly PF Ledger.
• Nomination & Declaration Forms in Form No. 2 (Revised) of the new employees
• Declaration form in Form- 11(Revised)
• Attend PF inspector for inspection of records, appearing before the associated authorities on behalf of the employer in 7-A proceedings under EPF Act
• All assessment & inspection from EPF department, when needed.
• Information regarding any amendment/changes in the act will be informed instantaneously.
Annual Process
• Form No. 3-A (Monthly Contribution of the employees)
• Form No. 6-A (Annual Return)
• Bank Reconciliation
• "DBF" Database File in soft copy
• Assist in issuance of Annual PF A/c slips.
PF Withdrawals & Transfers
• Receipt of forms (19 & 10-C) after 60 days of leaving of the employee making settlement.
• Receipt of PF transfer forms (Form 13) from new appointees and sending them to RPFC/Ex-Employers trust for getting the fund transferred through the associated RPFC office.
• Taking care the process of PF withdrawals and Transfer within specified time as per Act.
• Verification of papers to assure that same are within the norms as specified under the rules.
• Acknowledging the transferred received.
Monthly Process & Annual Process
• Preparation of ESI Contributions, Challan every month time as per Act. and procuring the Code Number
• Preparation & Submission of Return of contribution every half yearly & annually. Form No. 01-A (Annual Return), Form No. 3 (Regulation 14), Form No. 5(Regulation 26, Half-yearly Return), Form No. 7(ESI Regulation No.32).

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