Secretaries In Selaiyur

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Employees Provident Fund (EPF) & ESI — Key Details

Employees Provident Fund (EPF)

EPF is governed by the EPF Act, 1952 and is mandatory for establishments with 20+ employees. Employees contribute 12% of basic salary, matched by employers. 8.33% of the employer’s contribution goes to EPS (Employee Pension Scheme) for pension benefits. The remaining amount is credited to the employee’s PF account.

Eligibility & Contribution

• Employees earning less than ₹15,000/month must register under EPF.
• Employers and employees contribute 12% of basic pay.
• In small firms with less than 20 employees, the contribution rate is 10%.

Benefits of EPF

• Tax-free savings with interest.
• Pension benefits under EPS.
• Lump sum withdrawal on retirement.
• Partial withdrawals for emergencies like education, medical needs, or home purchase.

Employees’ State Insurance (ESI)

ESI is applicable to establishments with 10+ employees earning up to ₹21,000/month. It provides medical and cash benefits to employees and their dependents. Employers contribute 3.25% while employees contribute 0.75% of their salary.

PF & ESI Compliance

• PF Returns must be filed monthly by the 25th.
• Form 3A records monthly contributions for each employee.
• Annual EPF statements are issued by EPFO through the employer.

Business Compliance & Shop Registration

Businesses must register under the MSME Act, enhancing customer trust by displaying their license registration number on invoices and shop boards.