PF and ESI registration for employers: Guide

The Ministry of Labour & Employment, Government of India, has come up with a common PF and ESI registration. Employers can make the registration online through the Unified Shram Suvidha Portal.

PF-ESI Registration Process

  1. Sign up on the Shram Suvidha Portal

    Firstly, sign-up on the Unified Shram Suvidha Portal and a verification link will be sent to your email-id. After verifying, you will be re-directed to a new page for creating your User Id and Password. 
    (Note: Username and Password are case sensitive)

  2. Login to your account

    Next, login to your account by using the credentials used for signing up.

  3. Navigate to “Register for EPFO-ESIC”

    After logging in, go to “Register for EPFO-ESIC” and click on “Apply for New Registration”

  4. List of Acts

    Next, you will be shown the following List of Acts:

    a. Employees’ State Insurance Act, 1948
    b. Employees’ Provident Fund and Miscellaneous Provision Act, 1952

    Select the Act for which you are seeking registration. Select the Act applicable to you. If only one of the Acts are applicable, choose that Act.

  5. Establishment Details

    Further, enter your:

    a. Establishment Name as per PAN
    b. Address of Establishment
    c. Establishment Setup Details
    d. Factory License Details, if any
    e. Start-Up registration number, if any
    f. MSME registration number, if any
    g. Lastly, enter ownership details

    Save draft and click on “Next”.

  6. eContacts

    Next, enter the email address and mobile number of the authorised person.

  7. Contact Persons

    Next, you are required to enter:

    a. Primary Manager details (if any)
    b. Primary Owner details

    Similarly, you can add more owners.

  8. Identifiers

    Now, select any identifier from the dropdown list and fill in the details

    For instance, if you select “Goods and Service Tax Identification”-

    a. Enter GSTIN in “Identifier Value”
    b. Further, enter the name as on the GST Registration Certificate in “Name of Identifier”
    c. Thereafter, enter the date on which the GST Registration Certificate was issued in “Date of Issue”,
    d. Next, enter the name of the issuing authority in “Issued by (Authority) ”, which in case of GSTIN would be Goods and Service Tax Department
    e. Lastly, enter the place where the document was issued in “Issued at (Place)”

  9. Employment Details

    Further, you are required to enter:

    a. Employee details covered under EPF Act (Note, these details are only required for EPFO registration)
    b. Total number of employees employed for wages directly and through immediate employers on the date of application (Note, these details are only required for EPFO registration)
    c. Other common details

  10. Branch/ Division

    After that, enter branch/ division details, if any.

  11. Activities

    Further, select the primary business activity, nature and category of work from the dropdown.

  12. Attachments

    Lastly, upload the documents from the dropdown for proof of address, date of setup proof, license proof.

    Also, upload the specimen signature (Sample format is available on the website).

    Finally, upon filling all the necessary details, you will be required to attach DSC and submit the form. Then, an email will be sent on the registered email address. Moreover, you will also receive the login id and password using which you can login to EPFO and ESIC.

FAQs

Can I register only for EPFO or ESIC?

Yes, you can register either for both or any one of them. Select the Act applicable to you from the options provided before starting registration process.

Do I have to submit any physical documents?


All documents are to be uploaded online, no physical documents are required to be provided.

ESI : Employees State Insurance

The ESI scheme is managed by the Employees’ State Insurance Corporation (ESIC). The scheme provides medical and financial assistance to the employees and their families.

What is ESI?

The ESI scheme is managed by the Employee State Insurance Corporation a government body, and it is governed by the ESI Act 1948. It protects the employee in the case of sickness, disability, physical injury, and more. Moreover, it provides the working individual and his family with medical facilities. Both the employer and employee contribute to ESI and enable Indian employees to take part in a self-financed, healthcare, insurance fund.

ESI Applicability

An individual should meet certain criteria set by the committee to avail the benefits. ESI Scheme shall be applicable to:

  • Any individual working in a non-seasonal factory with more than 10 employees as per Section 2(12) of the ESI Act
  • Employees working in sectors such as shops, hotels and restaurants, newspaper establishments, road-motor transport undertakings, cinemas, preview theatres, private educational and medical institutions with a strength of more than 20 employees

ESI Wage Limit

The existing wage limit of the employee is ₹21,000 per month and if the employee has any disability, the wage limit for coverage is ₹25,000 per month.

There are exemptions to the rule in the case of daily average wages of INR 137. They do not have to contribute to the scheme from their wages. Only the employer’s contribution is paid for such people.

ESI Registration

The registration for employers under the ESI scheme is completely online. Here’s a step by step guide to the ESI registration online:

  • The employer should keep all documents ready for reference
  • An employer must file form 1, available in PDF format on the official website
  • Fill in the form and submit it for registration on the official website
  • Once verified, a registration number, a 17-digit unique identity will be provided. This unique number is required for all filings
  • Employees registered under the scheme get an ESI card after submitting a form with photographs and details of family members

Documents Required for ESI registration

  • PAN card of the business
  • Address proof of business
  • The license obtained under Shop and Establishment Act or Factories Act
  • Basic documents required as per the nature of entity – Articles of Association, Memorandum in case of a company, partnership deed in case of a partnership, and Limited Liability Partnership
  • Details of all directors, partners, and shareholders
  • Details of all employees along with their salary information
  • Bank details

Returns to be filed every year post registration

After the registration, ESI Returns have to be filed twice a year. Documents required for ESI Returns are listed below:

  • Register for Form 6
  • Attendance register of the Employees
  • Inspection book
  • Register of wages
  • Register of any accidents on the premises
  • Monthly returns and challans submitted for ESI

Return Filing Process

On successful registration of the establishment, the employer can file returns online. The login credentials will be available once registered. The same will be required for the online filing of returns. The half-yearly return of ESI for the period April to September is due by 12th November, and October to March is due by 12th May.

In order to file ESI returns online, the employer must follow the below-mentioned procedure:

  1. The employer must log in to the official website using login credentials

    Once he is able to log in to ESIC Portal, there is a list of actions that are available.

  2. To file the return, the employer must first verify if all the employee details are up to date and then file the return

    The employer must then fill the bank details and submit them to file the returns.

  3. The employer can go to the ‘List of Actions’ and ‘Generate Challan’

    You can download the challan and document it for future reference and inspections.

Consequences of non or Late Payment of Employees Contribution

Non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine up to ₹5,000. An employer who fails to pay the contribution within the time limit specified in the regulation shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.

Penalty for Non-Payment or Delayed Payment of Contribution

The ESI Corporation may levy and recover damages as per the Regulations, at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.

Period of delay Rate of damages in % p.a
Less than 2 months 5%
2 to 4 months 10%
4 to 6 months 15%
6 months and above  25%

The employer will be liable for prosecution under Section 85(a) for the first time, and if the employer repeats the offense, he will be liable for enhanced punishment for every repetition.

Wages Definition

The definition of wages under Section 2(22) under the ESI Act, 1952 states that it means all remuneration paid or payable in cash to an employee if the terms of the contract of employment were fulfilled. Some of the inclusions and exclusions from the wage component are as follows:

Inclusions Exclusions
Basic Pay Entertainment Allowance
Dearness Allowance Encashment of leave and gratuity 
House Rent Allowance  Retrenchment Compensation
City Compensatory Allowance Deduction of health insurance
Medical Allowance Tax Deductions
Meal allowance
Any other special allowances
Incentives (including sales commission)
Attendance and Overtime Payments
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ESI Calculation

An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages. He shall pay these contributions at the below-specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The same can be deposited online or to authorized designated branches.

Contributor Contributions
Employee 0.75% of wages paid/payable
Employer 3.25% of wages paid/payable

Example

Let us say Mr. Ansh having wages of Rs. 24,000 works in a processing unit. The contribution will be as follows:
Employee Contribution – 0.75% * 24,000 = 180
Employer Contribution – 3.25% * 24,000 = 780
So a total contribution of INR 960 will be made. The onus of deducting the contribution and depositing the same is on the employer.

Contribution Period and Benefit Period

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under:

Contribution Period Cash Benefit Period
1st April to 30th Sept From 1st Jan of the following year to 30th June
1st Oct to 31st March of the year following From 1st July to 31st December

FAQ

Can I claim an amount in ESI if I take treatment in private?

As mandated by the ESI Act, treatment has to be taken only from the ESIC hospitals or dispensaries. However, in case of emergency, if the treatment is taken from a private hospital, you can raise a claim with the ESIC subject to ESIC approval.

After resignation ESIC card is valid or not? and how long ESIC benefits could be taken after resigning a job?

For medical treatment, ESIC card is valid from the first date of insurable employment to last date of the corresponding benefit period. However, for cash benefits you need minimum contribution period, if you have minimum contribution period then you can avail ESIC cash benefits in the benefit period.

Can I reactivate ESIC card?

You need to give your old ESIC number to your new employer to reactivate your ESI Pehchan card. Your ESIC card will be reactivated when your new employer pays your ESIC contribution.

Can I withdraw the ESI amount?

ESI is a premium paid for medical benefits. If no benefit is obtained from it, there is no option available to withdraw amount from ESI Account.

Who administers the ESI Scheme?

The ESI Scheme is administered by a statutory corporate body called the Employees’ State Insurance Corporation (ESIC).

How does the scheme help the employees?

The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.

ESIC : Registration, Benefits, and Process

ESIC or Employee State Insurance Corporation is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. It is a multi-dimensional social system that provides socio-economic protection to workers.

What is ESIC?

ESIC or Employees State Insurance Corporation is a statutory corporate body set up under the ESIC Act 1948 which provides financial coverage to workers against sickness, maternity, disablement, occupational disease, or death due to employment injury. The ESI Act encompasses health-related eventualities that workers are exposed to on a daily basis. It acts as a financial safety net for workers.

Who is Eligible for ESI?

An individual should meet certain criteria set by the committee to avail the benefits offered by Employee State Insurance Corporation (ESIC). The ESI Scheme is applicable to:

  • Any individual working in a non-seasonal factory with more than 10 employees
  • Employees working in sectors such as hotels and restaurants, Newspaper establishments, road-motor transport undertakings, Cinemas, preview theatres, private educational and medical institutions with a strength of more than 20 employees
  • The existing wage limit of the employee is ₹21,000 per month and if the employee has any disability, the wage limit for coverage is ₹25,000 per month
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Benefits of ESIC Registration

There are a number of attractive features and benefits that the Employee State Insurance Corporation offers that are as follows:

  • Medical Benefits: Provides medical benefits to the employees and their family members for coverage of medical expenses
  • Disability Benefit: Provision of financial benefits in the case of temporary or permanent disability to the employee during the time of injury
  • Sickness Benefits: Employees can claim 70% of their daily wages in case of any certified illness for a maximum period of 91 days during the sick leave
  • Maternity Benefit: Under the ESI benefits, ESIC provides the following compensation at the time of maternity:
    • 100% of the daily wages for 26 weeks from the time of going into labour
    • Six weeks in case of a miscarriage
    • Twelve weeks of pay is provided in the case of an adoption
  • Unemployment Allowance: ESI provides a monthly cash allowance for a maximum period of 24 months in case of permanent invalidity due to a non-employment injury or involuntary loss of employment
  • Death benefits: Dependants can claim 90% of the daily wages every month if the employee dies at the workplace
  • Funeral Expenses: Provision of the amount of ₹15,000 for the funeral expenses to the dependents of the family or the people who perform the last rites
  • Furthermore, there are several other ESI benefits the ESIC offers, which are old age care medical expenses, physical rehabilitation, confinement expenses, and vocational training

Entities covered under ESIC

As per the government notification under section 1(5) of the ESI, Act the scheme applies to:

  • Shops,
  • Hotels,
  • Restaurants,
  • Cinemas including preview theatre,
  • Road motor transport undertakings and
  • Newspaper establishment employing 20 or more persons
  • Private Medical and Educational institutions employing 10* or more persons in certain States/UTs

*Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh.

Documents required for ESIC Registration

You need to submit the following documents while registering a company or establishment with ESIC:

  • A registration certificate of the organization
  • Certificate of registration in case of company, and partnership deed in case of a partnership
  • Memorandum of Association and Articles of Association of the Company
  • A detailed list of all employees along with their monthly compensation
  • List of partners, shareholders, and directors of the company or establishment
  • A canceled cheque of the bank account of the company
  • PAN Card of the organization and employees
  • List of directors of the company
  • List of the shareholders of the company
  • Address proof of the business establishment or company
  • A register containing the attendance of the employees

Process of Registration

ESIC registration is completely online. Follow the below steps to register ESIC:

  1. Register on ESIC Portal

    Click on the ‘Sign Up’ button under the ‘Employer Login’ option on the home screen of ESIC Portal. Fill in the details and submit the form.

  2. Confirmation Mail

    Post sign up to the portal, the employer will receive a confirmation mail sent to the registered e-mail id and mobile number entered at the time of sign up. The email shall contain the username and password details for registering as an employer and employee under the ESIC scheme.

  3. Login using username and password received in the mail

    It will redirect to the page having the option of ‘New Employer Registration’. Click on the ‘New Employer Registration’ option.

  4. Select the ‘Type of Unit’ from the drop-down list

    Click on the ‘Submit’ button

  5. Fill in the details in ‘Employer Registration – Form 1’. On completion click on the ‘Submit’ button.

    The Employer Registration Form-1 contains details pertaining to the unit of the employer, details of the employer and employees.

  6. Make payment for Registration

    Post submission of the Employer Registration Form-1, the ‘Payment of Advance Contribution’ page will open. The employer will need to pay the advance contribution for 6 months. Fill in the below details:
    – Amount to be paid
    – Select the payment mode

  7. Receipt of Registration Letter

    – On the successful payment of six months’ advance contribution, the system-generated Registration Letter (C-11) is sent to the employer.
    – It will contain a 17 digit Registration Number by the ESIC department.
    – The Registration Letter (C-11) is a valid proof of registration of the employer.

FAQ

Is it mandatory for employers to register under the ESI?

Yes. It is mandatory that an employer who falls within the eligibility bracket of the ESI scheme register themselves. The factory, company, or establishment should register with the ESIC within 15 days from the registration.

Are the benefits that are granted to the insured employees transferable?

The benefit that the employee is entitled to be passed on to the insured’s dependents in case of the untimely death of the insured employee due to an injury or disease contracted from the work environment.

What is the ESI Code number?

Every employee receives an ESI code number which is a unique 17-digit identification number of a factory or organization. The factory or organization is registered under the coverage of the Act. The ESIC portal generates the 17 digit number after the employer submits their employee’s information.