What Are the Employer Benefits of Setting Up PF and ESI Accounts for a 90-Employee Company?

Dear all,

I have recently joined as the HR manager at XYZ Company Ltd. My company deals in finance such as RD, FD, and loans. Currently, there is no PF and ESI account, so there is no deduction of PF and ESI for employees. We have around 90 employees in the company.

When I discussed with management about obtaining a PF and ESI account, they asked me about the benefits for the employer in opening such accounts. Could you please provide me with the basic benefits for the employer in opening a PF and ESI account?

Thanks and Regards,
Pawan Panchal.

There is no question of seeing benefits in ESIC and PF Act. Your establishment is already covered under these acts. Before anyone inspects your establishment, you must get registered in these acts. Otherwise, your employer would be taken to task for non-remittance of contributions under these acts. It is better to act fast now.

It is legally mandated that certain welfare facilities are to be given to employees.

First thing is, you will be in violation of laws and can be punished for failure to enroll in EPF and ESIC. Going beyond legalities, the expenditure on such contributions will boost employee welfare.

Dear Mr. Pawan,

As there are 90 employees in your organization, PF/ESIC is a must for your employees. You have to explain to your employer the legal aspects of it and its implications if not followed.

Regards,
Narendra

Biggest benefit is that your employer will be following the law. Another benefit is the employer can avoid getting fined for non-compliance. Just inform your employer that these actions are mandatory, and he has to comply with the law. Simple.

EPF and ESI are critical social security coverage, and employers have to enroll employees in these schemes as they are not optional.

You can find guidance on websites like citehr, various articles, etc. The following links may also be useful: https://stacowiki.in/en/central-acts/provident-fund-pf/ https://stacowiki.in/en/central-acts...insurance-act/