Understanding PF and ESI: What Happens After Filling Out Form 2?

Dear All,

Can anyone please explain the process of PF and ESI? How exactly does the process start? As soon as the employee fills out Form 2, what happens next? Can I have the details of the end-to-end process?

Regards,
Shweta Swarnkar

Dear Shewta,

Greetings.

A fine thread is available at the following link, where we have discussed a lot about compliance with the EPF Act.

Any specific queries, we can also answer for you.

Cheers,
Trisha
HR Professional

Hi Shweta Swarnkar,

Thank you for your questions.

Regarding the eligibility criteria for the registration of PF, it is required when there are more than 20 employees. If there are exactly 20 employees and no PF account exists, you would need to register for PF when you decide to set it up. However, the contribution would not be required from the starting date of employment, but only from the date of registration.

For ESI, the upper limit of salary is Rs. 21,000, as of 2021. This means that employees earning up to Rs. 21,000 per month are eligible for ESI benefits.

I hope this helps clarify your doubts.

Best regards

Dear Shweta,

Greetings.

The salary limit for coverage under the ESI Act is Rs. 10,000 per month. The coverage limit based on the number of employees is 20 and above; hence, twenty employees are also covered under the EPF Act. The date of coverage will be decided based on the date on which you crossed twenty employees in your company's roster.

Cheers,

Trisha
HR Professional

Hi Shweta,

If you have the registration in PF/ESIC, then enrollment will be done for an employee through a declaration form submission.
ESIC: Form 1 should be submitted within 10 days of joining at the local ESI office.
PF: You should submit Form 5 and Form 10 for new joinings and for employees who have left at the PF office along with the monthly return, i.e., 12A. Form 2 is the nomination form, which should also be submitted at the PF office.
Then the PF number will be allotted at your end in eligibility registers based on the joining date.
Returns: ESIC half-yearly return, PF yearly return.
I hope this gives you some idea.

Regards,
Vikas Kumar

Hi,

I agree with Trisha that for coverage under the ESI Act, we need 20 coverable employees, i.e., those drawing remuneration less than Rs. 10,001/-.

Regards,
Hiren Chheda