All About Employee’s PF ESI Registration with Applicability

The provident fund is a major fund collection scheme by the government of India to support and assist the working class in their future needs. The government also provides higher interest rates in return for maintaining the funds in the government treasury and giving individuals a higher sense of security.

Here in this post, we will be looking at some of the processes related to the Employee’s PF and ESI registrations.

Registration of Employees PF

A company with 20 or exceeding employees is needed by law to register in the EPF scheme within one month of attending the minimum strength of 20 employees. The small companies which do not own minimum strength would register themselves. The employee doesn’t have to become a member of the EPF scheme when the employee takes a salary exceeding Rs 15000 per month.

• Registration of PF
• Registration of ESI
• Advantage of ESIC Registration
• Employee PF Registration Advantages
• ESI Scheme Applicability
• Last 11 Years PF Interest
• Outstanding Gen payroll in the Industry
• Create ESI Challan via Gen Payroll
• Create PF Challan via Gen Payroll
• FAQs on PF and ESI Scheme for Employees

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Registration of ESI

ESI Registration is essentially performed when the employer secures more than 10 employees however the same is applicable for employees who have lower earnings. According to the act all the employees whose earnings are Rs 15000 or lower per month, the same are needed to contribute 0.75% of their pay for ESI and 3.25% by the company for ESI. For effective, ESI enrollment the employer would be required to furnish the advance contribution for 6 months.

Advantages of ESIC Registration

The advantages of enrolling on this scheme are:

• Sickness advantages a 70% rate in a salary form if any certified illness exists for a maximum of 91 days in any year.
• Medical benefits to the employee and his family members.
• The maternity advantage for women who are pregnant is in the form of paid leave.
• Employee’s death during his working period, 90% of the salary is provided to his dependents in the form of the monthly payment post to the employee’s death.
• Identical to the above for the case of the employee’s disability.
• Funeral expenses.
• Old age medical care expenses.

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Advantages of Employee PF Registration

• The PF scheme provides a pre-fixed interest on the deposit secured within EPF India.
• Nearly 8.5% of the employer’s contribution is rendered to the employee pension scheme. The same would assist in creating healthy retirement money for employees.
• The employee can withdraw the amount from the EPF fund during an emergency.
• Earnings made from the EPF are privileged from tax.

Read Also: Generate PF/ESI Challan & TDS Filing Via Gen Payroll Software

The registration for ESIC and EPF would be essential for all the new firms to be availed during the incorporation period with effect from the date Feb 23, 2020, and no individual ESIC and EPF registrations would be provided by Shramsuvidha portal to any firm.

ESI Scheme Applicability

• (i) Shops
• (ii) Hotels or restaurants not securing any activity related to manufacturing, but only involved in ‘sales’.
• (iii) Cinemas including preview theatres;
• (iv) Road Motor Transport Establishments;
• (v) News paper establishments.(that is not covered as factory under Sec.2(12));
• (vi) Private educational institutions run via peoples, trustees, societies or other organizations, and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centres, and pathological labs.

Interest Rates of Employee PF in the Last 11 Years

Financial Year (FY)	Interest Rate p.a.
2023-2024	8.25%
2022-2023	8.15%
2021-2022	8.1%
2020-2021	8.50%
2019-2020	8.50%
2018-2019	8.65%
2017-2018	8.55%
2016-2017	8.65%
2015-2016	8.80%
2013-2015	8.75%
2012-2013	8.50%
2011-2012	8.25%
2010-2011	9.50%

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The Outstanding Gen Payroll in the Industry

Gen cloud along with the desktop payroll software is the integration of some effective specifications which makes it much more popular in the industry.

The same provides the employee salary payslip towards every request via candidate while providing them PF and ESI filing and login on the portal itself. The secures payroll software an HR and employee dashboard for the complete track record of the system with the employee concerned reports and registers.

Also, the software has a customized salary setup for any miscellaneous time duration with the data import or export through Excel and the bulk email facility.

Easy Step to Create ESI Challan via Gen Payroll Software

• Step 1: Open Gen HR Payroll tool
• Step 2: Then click the home screen and go to–>Statutory Forms
• Step 3: After that click on the ESI option–>Here you do Select–>Generating Monthly return file (Excel Format)
• Step 4: Now here you can make an easy monthly ESI challan in the format of Excel & upload that Excel sheet to the government portal through manual login.

“Note–> Due to some Department Restrictions you Can’t log in Directly from Software. (soon will be resolved this issue)”

Easy Guide to Make Employee PF Challan by Gen Payroll Software

• Step 1: Open the Gen Payroll
• Step 2: After that go to from home screen and click statutory forms
• Step 3: Then click on Employee PF and select an option–> PF Challan, ECR, Form 12-A, Form 6 (P.S.), Form 4(I.F.)
  • On the next screen, you can Prepare Monthly PF Challans
• Step 4: The Gen payroll software will automatically calculate PF Challan as per workers’ salary details after clicking on the Auto-Fill option
• Step 5: Now click on the–> “Electonic Challan Cum Return” Button you can make ECR File. You can also log & Upload that Challan to the government EPFO portal Directly from our software

FAQs on PF and ESI Scheme for Employees