The working class in India has access to the social security programs PF and ESI. These two programs aimed to improve the lives of the working class. They are both under the control of the Ministry of Employment and Labor. In both schemes, the employer makes a proportional contribution to the employee’s salary, which is then transferred to the employee’s account.

ESI – What is it?

The Employee State Insurance Corporation (ESIC) is a legally independent organization accountable to the Ministry of Labour and Employment of the Indian Government. The ESI Act of 1948 manages the ESI program. The ESI plan was developed to meet the needs of employees in terms of health care and insurance.

Benefits of the ESI Scheme –

Registered employees and their dependents are covered by the ESIC Scheme, which includes the following:

Health benefits:

Clinical investigation and reasonable medical care for those covered and their families.

Medical Care:

ESI covers medical facilities for the insured person and his spouse.

Benefits for the disabled:

Compensation is provided to the employee for the duration of the disability.

Pregnancy benefits:

Maternity leaves are paid for 26 weeks. Six weeks are given if there is a miscarriage.

Benefits for death:

A one-time payment covers funeral expenses for the insured person.

Documents required for the ESI registration are –

For a private limited company, the business’s certificate of incorporation is.

Certificate of registration for each entity.

Detailed information about each employee, including their monthly salary.

Information about the partners, shareholders, and directors of the business or organization.

The company’s bank statements and enough documentation.

The most recent electricity bill and proof of address from the business’s or organization’s PAN card.

PF – What Is It?

In India, EPF, also known as PF, is a plan that lets employees save a portion of their income for use after retirement or in emergencies. The business and the employees contribute a predetermined amount to PF each month. The Employees’ Provident Fund (EPF) is a savings plan established by the Employees’ Provident Fund and Miscellaneous Act of 1952.

Benefits of PF –

An EPF account’s savings can be accessed after retirement or withdrawn at any time for any purpose, including education, marriage, or a medical emergency.

If you withdraw the PF amount and interest at maturity or after five years of continuous employment, the entire amount will be exempt from income tax.

Employees can access their EPF funds using their UAN from anywhere in the world. In case of an employee’s death, the nominee will receive the employee’s PF balance and any interest accrued during that time. EPF accounts are now entirely created and maintained online.

Documents Required for PF Registration –

• PAN Card copy
• Address of the business
• A copy of the factory license in case of factory
• A startup registration certificate in case of start-up
• A copy of the MSME Registration certificate in case of MSME
• Ownership Details
• E-contact information
• Detail of Primary and other owners
• Designation & date of joining the establishment
• Address and contact information
• GST Registration, Shops and Establishment registration or any other certificate granted by the government
• Employee details covered under the EPF Act
• Details of activities
• Agreement between the employer and the employee’s voluntary coverage.