Greetings,
Our manufacturing unit is based in Chandigarh. As we plan for the financial year 2024–2025, we aim to only operate our unit which is not currently active. We employ 10 people - 3 office staff members and 7 production workers.
The salary distribution is as follows:
The average monthly salary of our office staff is ₹26,000. In contrast, all of our production workers earn more than ₹21,000, with an average monthly salary of ₹21,100.
We would appreciate advice on whether we need to register for ESIC and PF considering the current salary structure. Could you please provide us with information about the applicability and necessary steps towards compliance?
Best Regards.
From India, Mohali
Acknowledge(1)
Amend(0)
3Our manufacturing unit is based in Chandigarh. As we plan for the financial year 2024–2025, we aim to only operate our unit which is not currently active. We employ 10 people - 3 office staff members and 7 production workers.
The salary distribution is as follows:
The average monthly salary of our office staff is ₹26,000. In contrast, all of our production workers earn more than ₹21,000, with an average monthly salary of ₹21,100.
We would appreciate advice on whether we need to register for ESIC and PF considering the current salary structure. Could you please provide us with information about the applicability and necessary steps towards compliance?
Best Regards.
From India, Mohali
Acknowledge(1)Amend(0)
Given your current salary structure, both ESIC (Employee State Insurance Corporation) and PF (Provident Fund) registrations are applicable to your organization.
1. ESIC Registration: As per the ESI Act, any establishment employing 10 or more persons must register for ESIC. The ESI scheme is applicable to employees earning ₹21,000 or less per month. Therefore, your production workers fall under this scheme. You can register online through the ESIC portal.
2. PF Registration: According to the EPF & MP Act, any establishment employing 20 or more persons must register for PF. However, it is optional for establishments employing less than 20 persons. Since you have 10 employees, PF registration is optional for you. If you decide to opt for it, all your employees will be covered as the salary limit is ₹15,000 per month. You can register online through the EPFO portal.
To ensure compliance:
1. Register your establishment under the ESI Act and EPF & MP Act (if you opt for it).
2. Deduct the employee's contribution from their wages every month.
3. Deposit both the employee's and employer's contribution before the due date every month.
4. Maintain all necessary records and registers.
5. File the necessary returns periodically.
Please consult with a labor law expert or legal advisor for a detailed understanding and to ensure full compliance with the laws.
From India, Gurugram
Acknowledge(1)Amend(0)
1. ESIC Registration: As per the ESI Act, any establishment employing 10 or more persons must register for ESIC. The ESI scheme is applicable to employees earning ₹21,000 or less per month. Therefore, your production workers fall under this scheme. You can register online through the ESIC portal.
2. PF Registration: According to the EPF & MP Act, any establishment employing 20 or more persons must register for PF. However, it is optional for establishments employing less than 20 persons. Since you have 10 employees, PF registration is optional for you. If you decide to opt for it, all your employees will be covered as the salary limit is ₹15,000 per month. You can register online through the EPFO portal.
To ensure compliance:
1. Register your establishment under the ESI Act and EPF & MP Act (if you opt for it).
2. Deduct the employee's contribution from their wages every month.
3. Deposit both the employee's and employer's contribution before the due date every month.
4. Maintain all necessary records and registers.
5. File the necessary returns periodically.
Please consult with a labor law expert or legal advisor for a detailed understanding and to ensure full compliance with the laws.
From India, Gurugram
Acknowledge(1)Amend(0)
Registration or coverage of an establishment under various labour laws Like ESI and EPF is based on the number of employees the establishment employs and not on the wages they earn. Even if all the employees get wages more than Rs 21000, the establishment will be covered under ESI provided the number of employees is ten or more than ten. Since you employ ten employees in all, putting the factory workers and the office staff together, you should take ESI registration without fail. But you need to register only those workers whose salary per month is not more than Rs 21000. If there is no such employee, let the registration continue and send a Nil return every month.
Since the number of employees is less than 20, there is no scope for EPF registration for the establishment.
From India, Kannur
Acknowledge(1)Amend(0)
Since the number of employees is less than 20, there is no scope for EPF registration for the establishment.
From India, Kannur
Acknowledge(1)Amend(0)
Based on your query and the given employee salary structure, your manufacturing unit in Chandigarh should indeed register for Employees' State Insurance (ESI). As per the ESI Act, 1948, any establishment employing 10 or more persons has to mandatorily register under the ESI scheme. The salary limit for coverage under ESI is ₹21,000 per month. Therefore, you should register all of your employees earning less than or equal to ₹21,000 per month.
Here are the steps you need to follow for ESI registration:
1. Go to the ESIC portal https://www.esic.in.
2. Click on 'Sign Up' to register your establishment.
3. Fill up the Employer's Registration Form (Form-01).
4. Submit the necessary documents such as a proof of address, PAN card, and a list of employees.
5. After successful verification, a 17-digit unique identification code will be provided to you.
Please note, even if none of your employees earn less than ₹21,000, you should still maintain your ESI registration and file Nil returns every month.
Regarding the Employees' Provident Fund (EPF), as per the EPF & MP Act, 1952, establishments employing less than 20 employees are not required to register for EPF. Therefore, your unit does not need to register for EPF at this point.
Please ensure all the legal compliances are duly met to avoid penalties. For more detailed information, you can visit the official websites of ESIC and EPF India.
Hope this clarifies your query.
From India, Gurugram
Acknowledge(0)Amend(0)
Here are the steps you need to follow for ESI registration:
1. Go to the ESIC portal https://www.esic.in.
2. Click on 'Sign Up' to register your establishment.
3. Fill up the Employer's Registration Form (Form-01).
4. Submit the necessary documents such as a proof of address, PAN card, and a list of employees.
5. After successful verification, a 17-digit unique identification code will be provided to you.
Please note, even if none of your employees earn less than ₹21,000, you should still maintain your ESI registration and file Nil returns every month.
Regarding the Employees' Provident Fund (EPF), as per the EPF & MP Act, 1952, establishments employing less than 20 employees are not required to register for EPF. Therefore, your unit does not need to register for EPF at this point.
Please ensure all the legal compliances are duly met to avoid penalties. For more detailed information, you can visit the official websites of ESIC and EPF India.
Hope this clarifies your query.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
List_enclosure ESIC Registration procedure.PDF
Registration for esi and pf.doc
CiteHR.AI
(Fact Checked)-Your information is correct. ESI registration is required for 10 or more employees. For EPF, the threshold is 20 employees. Well done! (1 Acknowledge point)