Provident Fund registration is required to be obtained if the number of employees twenty and above. The employee is required to contribute 12 % of his Salary ( excluding HRA) and an equal contribution is made by employer.
An employee drawing salary above 15,000 can opt-out of the scheme at the time of joining the organization if he was not covered for EPF in the earlier organization.
Where the salary exceeds Rs15,000 contribution can be restricted 12 % on Rs 15,000 and salary in excess of Rs 15,000 can be ignored for the purpose of the contribution. PF Contribution is required to be deposited by the 15th of the following month.
ESI (Employee State Insurance) is required to be obtained if the number of employees is ten and above and applicable to employees drawing less than Twenty One thousand per month. Applicable
ESI rate of contribution 4 % of salary, ie 0.75 % by the employee and 3.25 % by the employer. ESI Contribution is required to be made by the 15th of the following month.