ESI / EPF Registration in Chennai
Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. The rules for ESI and PF Deduction where ESI is Employee State Insurance and PF is Provident Fund. These are two social security schemes available to employees.
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ESI PF Registration in Chennai – An Overview
ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries
ESI registration and PF online registration is a scheme launched by the Government of India to offer medical, monetary, and other benefits to workers. PF ESI common registration is done by companies through the on-boarding of new employees. ESI calculation comprises of various elements of an employee’s monthly salary such as Basic Pay, Dearness Allowance, City Compensatory Allowance, HRA, Incentives, Attendance and Overtime Payments, Meal Allowance, Uniform Allowance and other special allowances.
Benefits of ESI PF Registration in Chennai
ESI PF registration allows for Partial Fund Withdrawals in certain cases such as medical emergency, home loan repayment, construction or purchase of new house, renovation of house, wedding of children or self.
- EPF is divided into two parts which are provident fund and Employee Pension Scheme.
- The subscriber Contribution 12% of basic plus daily allowance goes to the Provident Fund.
- In the case of employer contribution, 8.33% goes to Employee Pension Scheme out of 12%, the rest goes to the provident fund account.
- Considering the number of years of service and the average salary drawn by the person gets the pension.
- A retired person gets the lump sum EPS money along with PF.
- The members who complete the age of 58 years and completed 10 years of service without any withdrawal get the benefits of a pension.
- Members can withdraw from these accumulations to cater to financial exigencies in life – No need to refund unless misused.
- On resignation, the member can settle the account. The member receives his PF contribution, Employer Contribution, and Interest.
Who is required to register?
Organisations employing 20 or more members are required to register with PF department. Strength of 20 includes contract employees. Companies can also register themselves voluntarily. Employers are required to register with PF department within one month from the date of reaching 20 employees.
Contribution
The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers, as a fixed percentage of wages. The rates of contribution are:
| A | Employees’ Contribution | 1.75% of Total Wages |
| B | Employers’ Contribution | 4.75% of Total Wages |
In a situation where all employees are drawing above Rs. 15,000/-, you still need registration, we file a letter that there are no employees who draw a gross salary lesser than Rs. 15,000 per month and therefore no contribution, filing of returns etc. is still required. Therefore ESI registration is purely from a compliance perspective.
How to Register ESI PF in Chennai
The registration for employers under the ESI scheme is completely online. In other words, there is no need for the employers to submit any document physically either before or after the ESIC registration.
Login to ESIC Portal:
To register as an employer under the ESI act, simply visit the esic.in and on the home page select ‘Click Here to Login’.
A notification saying ‘If you have already installed the certificates, click here to continue’ would appear. Just press ‘click here’ to go to the ‘User Login’ page.
Fill the Details on the Sign Up Page
Once you are on the ‘Sign Up’ Page, enter details in the given fields such as:
Company Name – mention your company name here
Principal Employer Name – as per section 2(17) of the ESI act
After filling the above details, check the box next to notification ‘Please confirm your establishment/factory undereXclusive Labour Contract/Manpower Suppliers, Security Agencies, Contractors Labour categories. If not please register through the Common Registration Link for ESIC/EPFO.’ After doing so, click on the ‘Submit’ button.
Receive Username and Password Details
After submitting the sign up details, you will receive an email from the ESIC insurance team. This email would contain your username and password details that you would use for registering yourself as an employer and your employees under the ESI scheme.
Enter Login Details on the ESIC portal
After receiving the login credentials, access the esic portal again and enter your login details at the ‘User Login Page’. So, you need to enter your username, password as received in the email and enter Captcha code provided next to the Captcha code field. After entering the details, press ‘Login’.
Select New Employer Registration and Select Unit Type
After logging in to your ESIC account, you will see a page displaying the ‘New Employer Registration’ Link. Click on the ‘New Employer Registration Link’ to proceed further.
Pay Initial Contribution
After submitting all the details in the ‘Employee Details’ section, you will be directed to ‘Payment of Advance Contribution Page’. Here, by clicking on the ‘Pay Initial Contribution Link’ you will be directed to the ‘Advance Contribution Payment’ page where you are required to fill the ‘Amount to be Paid’ field and select the payment mode (online or offline) to pay advance contribution for 6 months`. After filling these details click on the ‘Submit’ button. Note down your Challan Number and press ‘Continue’ to make payment.
Receiving Registration Letter C -11
On making the payment, you as an employer would receive a system generated registration letter on your registered email id once the challan gets realized from the bank. It must be noted that C – 11 is a computer generated letter nad does not need any signatures. In other words, it is used as a valid proof of registration of your unit under the ESI Act.
Documents required for ESI PF Registration in Chennai
The following documents are required for ESI PF registration
- Copy of registration certificate or licenses in the name of the company
- PAN Card of the Business Entity, as well as all the Employees working under the entity
- Number of Employees and their details
- Primary Business Type of entity
- A Specimen of Signature
- Digital Signature
- Scanned copy of cancelled Cheque
- Proof of Address of business entity
- Setup Proof
- Licence Proof
- Lease deed if Hired/Rented/leased
FAQ's
Why should an employer register his/her establishment on the EPFO Employer portal?
Remittance by the employer has to be done only after generating challan from the EPFO. Hence, it is mandatory for every employer to register in the EPFO portal.
What are the consequences for non registration?
The online generation of challan will not be possible if the employer has not registered his/her establishment. The employer has to register and create his/her user id & password for accessing the Employer Portal of EPFO.
What are the compliance requirements for an employer?
Every employer has to generate challan and pay the amount due by 15th of every month. Also, employers are required to file PF returns.
What is ESI code?
Registration is the process by which every employer/factory and its every employee employed for wages, is identified for the purpose of the Scheme, and their individual records are set up for them. EMPLOYERS CAN NOW SUBMIT APPLICATION ONLINE FOR REGISTRATION UNDER ESI ACT THROUGH.
What is registration of Factory/ Establishment?
Registration is the process, by which every factory/ establishment, to which the Act applies, is identified for the purpose of the ESI Scheme, and their individual records are set up for them.
Is it mandatory for the Employer to register under the scheme?
Yes, it is the statutory responsibility of the employer under Section 2 –A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.
Which PAN is required for registration?
The PAN issued by the Income Tax of India in the name of the establishment is to be entered.
What is the due date for PF returns?
Due date for monthly PF return is 25th of every month and due date for annual PF return is 25th April.