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ESI & EPF Filing

Employees’ State Insurance Act, 1948 aims to provide certain benefits to employees in case of sickness, maternity and employment injury. Every employer to whom the provisions of ESI, Act applies shall remit the ESIC employee and employer contribution on or before 15th of the following month and file the required returns within the due date mentioned under the act. Failure to pay or file the required returns shall attract penalty under the said act.

The employees’ provident funds and miscellaneous provisions act, 1952 aims to encourage savings among employees which would benefit them at the time of their retirement. Every employer to whom the provisions of EPF, Act applies shall remit the EPF employee and employer contribution on or before 15th of the following month and file the required returns within the due date mentioned under the act. Failure to pay or file the required returns shall attract penalty under the said act.

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Documents required for filing ESI and EPF return

Register of Form 6

The register maintained in Form 6 has to be submitted.

Attendance Register

The attendance maintained at the establishment has to be provided.

Register of Wages

The register of wages to be submitted.

Monthly Challans

A copy of paid challans to be submitted..

EPF:

  • This scheme is applicable under the guidelines of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 as prescribed by Employees’ Provident Fund Organization (EPFO).
  • Mandatory registration for all the companies/organizations that is 3 years old having employee strength more than 20. Voluntary registration is accepted for the units having less number of employees.
  • Both employer and employee contribute in equal amount in this scheme.
  • In case, the employee number is more than 20, the contribution amount is 12% of Basic + DA. In case, employee number is less the contribution amount is 10% of Basic + DA.

ESIC:

  • This scheme is applicable under ESI Act, 1948, as prescribed by Employees’ State Insurance Corporation (ESIC) under Ministry of Labour and Employment.
  • Mandatory registration for the establishments/units/factories having 10 employees receiving INR 15,000 p.m. income within 15 days
  • 75% of the salary contribution from the employee and 4.75% from the employer should be made under this scheme (Except those employees earning INR 100 per day)

So, any commercial unit fulfilling such conditions is eligible of EPF and ESIC annual compliances per FY as discussed in this article.

Annual PF and ESIC Compliances per FY

For EPF:

  • Eligible employer should clear the Provident Fund payment in Provident Fund Account through Challan as opened during registration on 15th of each month.
  • Provide details of new joiners (Form 5) and terminated employees (Form 10). Employer should also provide information on last month employees, new and resigned employees within 15 days
  • Consolidated monthly Statement (Form 12 A)
  • Annual Return by 30th April of every year, with consolidated annual contribution statement (Form 3A and 6A)
  • Conduct PF Audit, as applicable under the guidelines of this Scheme

For ESIC:

  • Eligible employer should clear the Monthly contribution in the ESIC Account through Challan as opened during registration on 15th of each month
  • Provide details of new joiners and terminated employees. Employer should also provide information on last month employees, new and resigned employees within 15 days
  • Bi-Annual Returns (Form 5) as,
    1. April to September: 11th November
    2. October to March: 11th May

Note: Submission dates are subject to change.

  • Immediately report about accident/Death case (Form 16), wherever applicable
  • Conduct ESIC Audit, as applicable under the guidelines of this Scheme

Note: Employees are to file and submit certain forms, such as, withdrawal, declaration, termination, transfer, etc. based on specific circumstances. They should be given proper assistance from the employer/concerned zonal office.

Penalties on Failing the EPF and ESIC Compliances

For EPF:

  • Penalty of 12% per year interest for each day of delay in payment of contribution
  • Penalty on late payment as mentioned:
    • Delay up to 2 months: 5% interest p.a.
    • Delay of 2-4 months: 10% interest p.a.
    • Delay of 4-6 months: 15% interest p.a.
    • Delay of more than 6 months: 25% interest p.a. not exceeding 100% at a time

For ESIC:

  • Penalty of 12% per year interest for each day of delay in payment of contribution

Restrictions under IT Act: If the violation of non-payment of EPF/ESIC contribution comes under the offense under Income Tax Act, the concerned unit may by disallowed from any more deposit in PF/ESI Account and thus cannot get the deduction benefits of the corresponding schemes.

Benefits of Annual PF and ESIC Compliances for Eligible Businesses

  • Gathers employees’ loyalty and satisfaction
  • Creates reputation and good Cost to Company
  • Gets competitive advantage
  • Supports better employment
  • Guarantees stable company financial condition
  • Secures employees’ social and personal lifestyle

Frequently Asked Questions​

No. Overtime is not a regular payment and it is occasional in nature. Therefore, it should not be included while calculating wages ceiling limit for employee coverage under the act.

The employer shall pay simple interest at the rate of 12% p.a. for each day of delay.

He wage limit shall be Rs. 21,000/- per month.

Yes. The employee IP i.e. Insured person ID is mandatory for filing the returns.

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