- Kothapet
- Hitech City
ESI & EPF Registration
Unlocking Growth Potential with a Private Limited Company
ESI & EPF Registration
Ensuring Social Security
The Employee State Insurance (ESI) scheme is applicable to all factories and establishments with 10 or more employees earning a monthly wage below Rs. 21,000. The employer contributes 3.25%, while the employee contributes 0.75%, totaling 4%.
EPF Registration
Provident Funds (PF) play a crucial role in employee savings and retirement planning. Various types of PF accounts exist, each with distinct features and tax implications:
Statutory Provident Fund
Governed by the Provident Funds Act, 1925, it’s for government employees and institutions like universities and railways.
Recognised Provident Fund
Covered under the Provident Fund Act, 1952, applicable to establishments with 20 or more employees. Entities can opt for a government-approved scheme or create their own with approval from the Commissioner of Income Tax.
Unrecognised Provident Fund
Not approved by the Income Tax Commissioner, typically established by employers and employees directly.
Public Provident Fund (PPF)
Open to the general public, offering tax benefits and flexible investment options.
Employees' Provident Fund (EPF)
Widely adopted by private sector organizations with 20 or more employees, with a current interest rate of 8.15% per annum. Contributions from both the employer and employee are mandatory
Unlocking Growth Potential with a ESI & EPF Registration
Employees' Provident Fund(EPF)
EPF, or Employees’ Provident Fund, is a well-known provident fund scheme often discussed in salary-related matters. It is widely adopted by private sector organizations employing 20 or more individuals.
The rate of returns on the balance held in an individual’s EPF account is contingent on the prevailing interest rate. As of March 2023, the interest rate stands at 8.15% per annum.
Under the EPF scheme, both the employer and the employee make monthly contributions to the employee’s account, usually in equal proportions. The specific percentage of contributions and the corresponding accounts they are allocated to vary based on the employee’s salary.
For individuals with a salary of ₹15,000 or lower, the EPF contributions are distributed as follows
1.Employee contribution to EPF: 12% of the salary.
2. Employer contribution to EPF: 3.67% of the salary.
3. Employer contribution to EPS: 8.33% of the salary, limited to a maximum of ₹1,250 (ceiling amount).
This allocation ensures that 12% of the employee’s salary goes towards the EPF, while the employer contributes 3.67% to the EPF and 8.33% (up to ₹1,250) to the EPS.
The rate of returns on the balance held in an individual’s EPF account is contingent on the prevailing interest rate. As of March 2023, the interest rate stands at 8.15% per annum.
Under the EPF scheme, both the employer and the employee make monthly contributions to the employee’s account, usually in equal proportions. The specific percentage of contributions and the corresponding accounts they are allocated to vary based on the employee’s salary.
For individuals exceeding a salary of ₹15,000, the EPF contributions are distributed as follows
1.Employee contribution to EPF: 12% of the salary.
2. Employer contribution to EPF: 3.67% of the salary.
3. Employer contribution to EPS: A fixed amount of ₹1,250.
4. Additional employer contribution to EPF: The remaining amount, calculated as (8.33% of the salary) minus ₹1,250.
Empowering Employers and Employees
Conclude by underscoring the significance of ESI and EPF registration in fostering employee welfare, financial security, and social protection. Encourage employers to fulfill their statutory obligations and uphold the rights of employees by ensuring seamless compliance with ESI and EPF regulations.
Embracing the ESI & EPF Registration
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