What is employees' state insurance?
EPF is one of the major savings channels in India for almost all people employed in government, private, or public sector organizations. It is being initiated by the Employees Provident Fund Organization (EPFO) of India.
Companies with workforce strength of 20 or more are expected to register with the PF Agency. The capacity of 20 involves contract staff, such as housekeeping, security, or other contract workers in the company. Companies that do not have an authorized number of employees but are willing to register to provide the benefits of the Provident Fund to their employees may register voluntarily with the Regional Provident Fund Office. Registration must be made within one month from the date of the hiring of 20 employees. Any delay could lead to a penalty.
Benefits of employees' state insurance :
- Medical Advantage
- Benefit from Disease
- The Benefit of Motherhood
- Impairment Advantage
- Benefit for Dependents
- Costs of Burial
- Recovery Gain
Where a company/firm/organization hires ten (in a few Indian states and UTs, this amount is twenty) or more people, and their individual wage/salary falls below the threshold limit of INR 21,000 per month, then ESI Registration is necessary. ESIC recognizes the hiring body and its staff after registration by assigning a 17-digit unique identity code.
To make the benefits available under this ESI scheme, the registered working company must contribute 3.25% of the gross monthly salaries/wages owed to its workers, while qualified individual employees must only contribute 0.75% of their monthly income to the ESIC funds each month of the year. Employees who receive less than INR 100 a day are spared from contributing their share of the ESI contribution.
