ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.Ascending will help you with the hassle free registration process of ESIC and in completing further compliances within time to avoid penal consequences.
The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement. Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.
The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic wages plus dearness allowance plus retaining allowance. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.
PF registration is applicable to every establishment who had 20 employees or more or PF registration can be obtained voluntarily by the establishment if having less than 20 employees. EPF registration is mandatory for all establishments- which is a factory engaged in any industry having 20 or more persons, and to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify in this behalf.
Central Government may apply any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner.
Given below are the benefits of the PF scheme: