FilenUnderstanding EPF & ESI Regulations
EPF (Employees' Provident Fund) and ESI (Employees' State Insurance) are India's two principal social security schemes designed for workers. Non-compliance, late deposits, or inaccurate wage disclosures attract massive interest charges, legal audits, and possible penal action against company directors. Security, manpower, and housekeeping contractors must prove 100% on-time EPF & ESI deposits to clear monthly billing cycles with clients.
1. Employees' Provident Fund (EPF)
Governed by the EPFO, EPF is mandatory for establishments employing 20 or more workers. Both the employer and the employee contribute 12% of the employee's basic salary + dearness allowance monthly. For small security and cleaning companies, voluntary registration is allowed to establish legal credibility and qualify for corporate contracts.
2. Employees' State Insurance (ESI)
Governed by the ESIC, ESI is a self-financing social security and health insurance scheme. It is mandatory for establishments employing 10 or more workers (in some states, 20) whose monthly wage is ?21,000 or below. The employer contributes 3.25% and the employee contributes 0.75% of the gross salary.
Our End-to-End Compliance Portfolio
- Establishment Registration: Setup of employer portals, generation of EPF establishment codes and ESI code numbers.
- Universal Account Number (UAN) Activation: Generation of new employee UANs and linking Aadhaar, Bank PAN KYC details.
- ESI Sub-code Generation: If your company supplies manpower in multiple states, we secure sub-codes to allow local ESI dispensary mapping.
- ECR Filing & Challans: Compilation of monthly wage sheets, uploading Electronic Challan-cum-Returns (ECR), and generating bank payment gates before the 15th of every month.
- Inspector Representation: Drafting replies and representing your business in inquiries (e.g. under Section 7A of the EPF Act or Section 45A of the ESI Act).
Documents Required for EPF & ESI Setup
- PAN Card of the Proprietor / Company
- Certificate of Incorporation (COI) or partnership deed
- GSTIN or Trade License
- First Sale / Service Invoice copy
- List of at least 10/20 employees with their joining date, PAN, Aadhaar, Bank details, and gross wages
- Cancelled cheque of the corporate bank account
The Cost of Delay
All EPF and ESI monthly contributions must be deposited on or before the 15th of the subsequent month. Delaying filings triggers statutory damages under Section 14B (up to 25% p.a.) and interest penalties under Section 7Q (12% p.a.). Filengro ensures your monthly data is uploaded and challans are compiled by the 10th of every month, safeguarding you from financial damages.