ESI & PF RETURN

Employee’s State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for employers having 10 or more employee. For all employees earning Rs.15,000 or less per month as wages, the employer must contribute 4.75% and employee must contribute 1.75% towards ESI. The ESI fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. TAXASTRO  can help you obtain ESI registration for your business.

To promote the attitude of savings amongst the employees and also to benefit them during retirement a social security system of Provident fund was introduced. Contributions towards the PF are made by both the employer as well as the employee every month. The contribution made towards the PF can be only drawn by the employee only during the time of his or her employment, but there are a few exceptions.

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Reasons to Register a ESI

Employee’s State Insurance Corporation(ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides Employees with a comprehensive Social Security Scheme for protecting the employees during sickness, injury or disability.

ESI Contribution

ESI contributions must be made by the employer for all employees having a salary of less than Rs.15,000 per month. The employer must contribute 4.75% and employee must contribute 1.75% of the wages for ESI.

ESI Benefits

Employee’s State Insurance Corporation(ESI) is a self-ESI provides employees registered the scheme with a host of medical and sickness benefits. Employees registered under the scheme can avail medical facilities and are also entitled for sick pay benefits.

Continued Compliance

Organizations under ESI coverage must file annual return showing the changes if any during the preceding year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.

ESI Registration

ESI Registration for Employers having more than 10 employees. The Employer must contribute 4.75% of the Employees wages towards ESI. Once, registered the organization is allotted a 17 digit unique identification code.

PF Return Filing

The employers that have PF registration have to file the PF returns monthly. The PF return filings are to be completed by the 25th of each month. Here we will talk about the various forms used for PF return filing in detail. The employers can easily file the PF return through the Unified portal.

Form 2

Form 2 is filed as a declaration and nomination under the Flagship scheme of the Employment Provident Fund and the Employment Family Pension Scheme. Form 2 must be filed by the employees who are joining the establishment. This form is to be submitted with Form 5. Form 2 is divided into 2 different parts.

Part A

Part A of Form 2 deals with nominating the recipients of the EPF balance of the particular account holder, in the event of his or her death. This part of the form must include the following details:

  • Name
  • Address
  • Relationship with the subscriber
  • Age
  • Sum of the money that is to be paid to the nominee
  • Guardian Details ( In case the nominee is a minor)

This Part has to be signed or needs to have a thumb impression to be made at the end of the section.

Part B

The details of the nominee as already mentioned in Part A should also be included in Part B. Additionally, the details of the members who are eligible to receive the children/ widow pension must be furnished.

This Part again must be signed duly or a thumb impression has to be made at the end of the section.

Form 5

Form 5 is a monthly report that contains the details of the employees who are newly enrolled in the provident fund scheme. Form 5 must include the following details:

  • Organization’s Name
  • Address of the Organization
  • Code of the organization
  • Account number of the Employee
  • Name of the employee
  • Middle Name (Husband/Father)
  • Date of birth of the employee
  • Date of joining
  • Track record of the work.

The form is to be filed and stamped by the employer with the date of filing mentioned on it.

Form 10

It is a monthly report that includes the details of the employees who have ceased to be a part of the scheme on the given month. Form 10 includes the following details.

  • Account Number
  • Name of the employee
  • Name of the father or the husband
  • Date of leaving the service
  • Reason for leaving service.

Form 10 must be filed and stamped by the employer with the filing date of the form.

Form 12A

This Form 12 A is a report that contains the payment details that are contributed to the account of the respective employee in a particular month.

Annual PF Return Filing

The annual returns are to be filed by the 30th of April in a given year. The forms that are utilized for filing the annual PF returns are

  • Form 3A
  • Form 6A

Form 3A

The Form 3A depicts the month-wise contribution to the subscriber or members and the employers towards the Employee Provident Fund and the Employee Pension Fund in a year. The data is calculated by every member who is a part of the scheme. Additionally, the scheme will include the following details

  • Account Number
  • Name of the subscriber
  • Name of the father or the husband
  • Name and address of the establishment
  • The statutory rate of contribution
  • Voluntary contribution in case if there is any.
  • Form 3A must contain the signature and the seal of the employer.

Form 6A

Form 6A is a consolidated annual contribution statement that includes details about the annual contribution of each member of the establishment. The Form has to include the details as they are enumerated below:

  • Account number
  • Name of the members of the subscriber
  • Wages, retaining allowance if there is any, and the D.A that includes the cash value of the food concession that is paid during the currency period.
  • The amount of contribution that is deducted from the wages.
  • Employer’s contribution (Both EPF and Pension)
  • Refund of the advances
  • Rate of the higher voluntary contribution (If there is any)
  • Remarks

Besides this, the following details should also be included in the amount remitted column:

  • The month of the contribution
  • The remitted contribution that includes the refund of the advances
  • EDLI Contribution
  • Pension Fund Contribution
  • Administrative charges
  • Aggregate contributors.