Performance Optimization > PF, ESI & Other

Employee Provident Fund Scheme

The Employees' Provident Fund Organisation, India, is one of the largest provident fund institutions in the world in terms of members and amount of financial transactions that it has been carrying on. Employees' Provident Fund Scheme takes care of following demands of the members:

  • Medical Care
  • Housing
  • Retirement
  • Family obligation
  • Education of Children
  • Financing of Insurance Polices

CONTRIBUTION UNDER PROVIDENT FUND: As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month.

The applicant is assigned a social security number by filling an application. The Provident Fund registration points on delinquent reporting, underreporting, or non-reporting of workforce size. If the work force size exceeds 20, then Provident Fund registration becomes mandatory.

The employer is required to provide relevant information to the concerned regional Provident Fund Organization (EPFO) in specified manner for allotment of Establishment Code Number. No registration is to be made for the employees. Nevertheless all eligible employees are needed to become members of the Fund and individual account number is allotted by the employer in specified manner.

As per an internal circular, if application is complete in all respect, then the code number is to be allotted within 3 days from the date of submission. However, in many cases applicants have received the intimation letter with the code number in 12 to 15 days. An online application facility is not provided so far.

EMPLOYEES’ STATE INSURANCE (ESI)

The enactment of Employees’ State Insurance Act, 1948 anticipate an integrated need based on social insurance scheme that would protect the interest of workers in crises such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury leading to loss of wages or earning capacity. The Act also guarantees to render fairly good medical care to workers and their immediate dependants.

The Act was originally applicable to those non-seasonal factories using power and employing 20 or more persons; but it is now applicable to all non-seasonal power using factories employing 10 or more persons and all non-power using factories employing 20 or more persons.

The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).

CONTRIBUTION UNDER ESI: - E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act .The contribution payable to the Corporation in respect of an employee shall include employer’s contribution and employee’s contribution at a prescribed rate. Revisions in rates are made from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.50/- are granted exemption from payment of contribution. However employers will not get such exemptions from their contribution in respect of these employees.

Registration is the process through which every employer/factory and every employee employed for wages are analyzed for the purpose of the medical insurance scheme and their individual records are set up for them.

As per the Employees' State Insurance (General), Form 01 is the form needed to be submitted by Employer for registration. The Employer Code Number will be issued within 3 days to a week. Within next two days, an "intimation letter" containing the Code Number is sent by post to the employer.

After the employer’s registration, the Employee’s individual insurance is to be made which is a separate process. The Employer is accountable for submitting the required Declaration Form and employees are responsible for providing correct information to the employer. The employee temporary cards (ESI Cards) are issued on the spot by the local offices in many places. The temporary cards remain valid for 13 weeks from the date of appointment of the employees. It takes about 4 to 5 weeks to get a permanent ESI card. The identity cards will be delivered to the insured persons directly by the ESI Corporation rather than through the employers to assure that all the insured persons receive their identity cards to enable them to receive cash and medical benefit.

The ESI Act applies to all establishments employing 10 or more persons. The ESI Act provides for sickness benefits, medical relief, maternity benefits for women workers, compensation for fatal and other employment injuries, etc. For becoming eligible for this Act, an employee should receive wages up to Rs. 10,000 per month.

ESI REGISTRATION REQUIREMENTS CHECK LIST

  • Cancelled Cheque and Copy of Bank Statements
  • List of Employees ( Date of joining, Place of Duty, Salary )
  • Month wise List of Number of Employees from the date of Start
  • Copy of PAN Card of Firm/Company and Owners
  • Residence Proof ( Voter Card/ Passport/ Ration Card/ Driving Licence)
  • Proof of Registration of Establishment
  • Partnership deed and Copy of Registration
  • List of Clients
  • Copies of Work Orders/ Agreements ( Minimum Two )
  • Copies of Attendance/ Wage Sheet for the Month of Coverage
  • Memorandum of Association/ Articles of Association
  • Date of Application if Applied Earlier.

LABOUR / HUMAN RESOURCE LAW

The Indian law in relation to Human Resources (HR) is only combination of Central and State laws which made it more complicated. Diverse laws govern the different prospects of HR such as employment, compensation, harassment, safety at workplace, termination, corrective action, policies, procedures, benefits administration and records maintenance. A large number of requirements are required to be regularly fulfilled by employers under these laws on a monthly, quarterly or annual basis.

SOME OF THE PROMINENT HR-RELATED LAWS IN INDIA ARE:

LAWS RELATED TO INDUSTRIAL RELATIONS:

  • Industrial Disputes Act, 1947
  • Industrial Employment (Standing Orders) Act, 1946
  • Trade Unions Act, 1926
  • Minimum Wages Act, 1948
  • Payment of Bonus Act, 1965
  • Payment of Wages Act, 1936

LAWS RELATED TO WORKING HOURS, CONDITIONS OF SERVICE AND EMPLOYMENT:

  • Contract Labour (Regulation & Abolition) Act, 1970
  • Factories Act, 1948
  • Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • Sales Promotion Employees (Conditions of Service) Act, 1976
  • Shops & Establishment Act

LAWS RELATED TO EQUALITY AND EMPOWERMENT OF WOMEN:

  • Equal Remuneration Act, 1976
  • Maternity Benefit Act, 1961

LAWS RELATED TO SOCIAL SECURITY:

  • Employees’ State Insurance Act, 1948
  • Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
  • Payment of Gratuity Act, 1972
  • Workmen’s Compensation Act, 1923

LAWS RELATED TO DEPRIVED AND DISADVANTAGED SECTIONS OF THE SOCIETY:

LAWS RELATED TO INDUSTRIAL RELATIONS:

  • Bonded Labour System (Abolition) Act, 1976
  • Child Labour (Prohibition & Regulation) Act, 1986

BESIDES THE ABOVE HR SPECIFIC LAWS, THE RELATIONSHIP OF AN EMPLOYER AND EMPLOYEE ALSO GOVERNED BY FOLLOWING GENERAL LAWS:

  • Indian Contracts Act, 1872
  • Intellectual Property laws
  • Specific Relief Act, 1963
  • Law of Torts
  • Arbitration & Conciliation Act, 1996.

While these HR-specific laws are highly complex and typical to comprehend by many, the onus is on the employer to understand them and ensure compliance with the provisions specified therein. Consequences of non-compliance are stiff. If the employer is failed to comply with the statutory requirements can result in fines, penalties, and in the most extreme cases, imprisonment for the Directors and/or the officer-in-charge of the Company. It hence augurs well for any business entity to be aware of the various HR-related laws and regularly comply with all the requirements.

We understand the complexities included in these HR-related laws and the difficulties faced by companies in fulfilling with them. We, thus, offer a wide range of services to our clients that cover different aspects of HR in a company, including.

  • Drafting all HR-related documents such as job offer letter, appointment letter, transfer letter, appraisal letter, leave.
  • Advising on the various compliances required to be fulfilled under applicable laws
  • Drafting employee-related agreements such as confidentiality, non-disclosure and non-solicitation agreements.
  • Providing advice and opinion on complex HR-related issues faced by the company from time to time.
  • Handling employee-related disputes arising out of termination, voluntary resignation, non-payment of dues, etc.
  • Re-drafting HR documents as deemed important and assuring that the company becomes legally-Compliant

What Rajput Jain & Associates Offers

We provide services in the areas of PF; ESI & Other labour law related Consultancy Services. We honor ourselves on a practical, ethical and professional approach to all PF, ESI & Other Consultancy Services. We aims at to work in the best interests of our client, giving best advice, avoiding conflicts of interests and acting with honesty & integrity at all times with the profession & tax authority with consideration of ethical code of conduct.

PROVIDENT FUND WORKS

New Company Registration

  • Filing of necessary papers and obtaining PF registration code number for new establishment within specified time as per Act.
  • Form 5A (Return of ownership)
  • Form 9 (Revised)
  • Submission of Specimen Signature

Monthly Process

  • Preparation of monthly Challan for EPF & deposited into bank within prescribed time as per Act.
  • Prepare Monthly Return :
    • Form 12A (Revised)
    • Form -5 (New Joinees)
    • Form-10 (Resigned)
  • Preparation of Form- 7(IF)
  • PF Eligibility Register
  • Maintenance of all statutory registers needed by the PF authorities.
  • Preparation of Monthly PF Ledger.
  • Nomination & Declaration Forms in Form No. 2 (Revised) of the new employees
  • Declaration form in Form- 11(Revised)
  • Attend PF inspector for inspection of records, appearing before the associated authorities on behalf of the employer in 7-A proceedings under EPF Act
  • All assessment & inspection from EPF department, when needed.
  • Information regarding any amendment/changes in the act will be informed instantaneously.

Annual Process

  • Form No. 3-A (Monthly Contribution of the employees)
  • Form No. 6-A (Annual Return)
  • Bank Reconciliation
  • "DBF" Database File in soft copy
  • Assist in issuance of Annual PF A/c slips.

PF Withdrawals & Transfers

  • Receipt of forms (19 & 10-C) after 60 days of leaving of the employee making settlement.
  • Receipt of PF transfer forms (Form 13) from new appointees and sending them to RPFC/Ex-Employers trust for getting the fund transferred through the associated RPFC office.
  • Taking care the process of PF withdrawals and Transfer within specified time as per Act.
  • Verification of papers to assure that same are within the norms as specified under the rules.
  • Acknowledging the transferred received.

Monthly Process & Annual Process

  • Preparation of ESI Contributions, Challan every month time as per Act. and procuring the Code Number
  • Preparation & Submission of Return of contribution every half yearly & annually. Form No. 01-A (Annual Return), Form No. 3 (Regulation 14), Form No. 5(Regulation 26, Half-yearly Return), Form No. 7(ESI Regulation No.32).

Employee State Insurance Corporation (ESIC) Works

New Company Registration

  • Filing of necessary papers and obtaining ESI registration code number for new establishment within specified time as per Act & procuring the code number.
  • To interact with ESI Branch office authorities to obtain ESI Cards to the Contributors.
  • Submission of Accident Reports, in the event of risk occurred.
  • Obtaining Permanent Identity Card (PIC) from the ESI Branch office.
  • To help the Members in case of changes in the family, Loss of identity cards, etc.,
  • To advise the Employees in case of sickness, disablement, Maternity, etc.,
  • Guiding the management in labor oriented payments / Accounts / Lawful matters, and assisting at the time of ESI inspections
  • Correspondence/Liaison with ESI Department.
  • Information regarding any amendment/changes in the act will be informed immediately.
  • Maintain Individual Employees Record
  • Registration under the ESIC Act.
  • Maintain 32 No. Register, Accident Register.
  • Maintain/submit the D.F. of New Employee.
  • Maintain/submit the accident report.
  • Maintain/submit the accident report .Dealing with the Inspector for ESI Inspection.
  • Also do any other work regarding ESIC.

BONUS ACT

  • Maintain the Bonus Sheet / Register as per Law.
  • Any other work in this regard.

FACTORY ACT 1948.

  • Register under the Factory Act.
  • Maintain the register regarding Factory Act.
  • Maintain / submit Annual Return / Half yearly return.
  • Obligation for Factory Act.

LABOUR WELFARE FUND

  • Maintain / Submit the Labour Welfare Challan & Form No. A.
  • Any other work regarding labour welfare.

OTHER LABOUR / HUMAN RESOURCE LAWS RELATED TO INDUSTRIAL RELATIONS COMPLIANCE:

  • Industrial Disputes Act, 1947
  • Industrial Employment (Standing Orders) Act, 1946
  • Trade Unions Act, 1926
  • Minimum Wages Act, 1948
  • Payment of Wages Act, 1936

LAWS RELATED TO WORKING HOURS, CONDITIONS OF SERVICE AND EMPLOYMENT COMPLIANCE:

  • Contract Labour (Regulation & Abolition) Act, 1970
  • Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • Sales Promotion Employees (Conditions of Service) Act, 1976
  • Shops & Establishment Act

LAWS RELATED TO EQUALITY AND EMPOWERMENT OF WOMEN COMPLINANCE:

  • Equal Remuneration Act, 1976
  • Maternity Benefit Act, 1961

LAWS RELATED TO SOCIAL SECURITY COMPLIANCE:

  • Employees’ State Insurance Act, 1948
  • Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
  • Payment of Gratuity Act, 1972
  • Workmen’s Compensation Act, 1923

LAWS RELATED TO DEPRIVED AND DISADVANTAGED SECTIONS OF THE SOCIETY COMPLINACE:

  • Bonded Labour System (Abolition) Act, 1976
  • Child Labour (Prohibition & Regulation) Act, 1986

HR SPECIFIC LAWS, THE RELATIONSHIP OF AN EMPLOYER AND EMPLOYEE ALSO GOVERN BY FOLLOWING LAWS COMPLIANCE:

  • Indian Contracts Act, 1872
  • Intellectual Property laws
  • Specific Relief Act, 1963
  • Law of Torts
  • Arbitration & Conciliation Act, 1996.

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