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EPF and ESI Compliance for Employers

As an employer, you must comply with all the EPF and ESI rules and regulations. These laws govern how companies conduct their business and how they should deal with their employees' contributions. To comply with the law, employers must file the relevant forms and provide the necessary assistance to their employees. If your employees are late in making their contributions, you will have to pay late penalty. The penalties are 5% p.a. for delays of up to two months. Further, non-payment of EPF/ESI contribution is regarded as an income tax offence and will lead to disqualification of deduction benefits.

If your company has fewer than 20 employees, you can opt for voluntary registration under the EPF Act and begin contributing to your employees' benefits from the start. The ESI Act, 1948, sets the rules and regulations for this social security scheme. You must register as an employer with the ESI scheme to ensure your employees are covered. If you have more than twenty employees, you must register for both the EPF and ESI.

EPF and ESI compliance is critical for your company. You must pay the required contribution on a periodic basis and maintain proper records. The Ministry of Corporate Affairs has made significant changes in the company provisions to help employers comply with the new law. In addition, EPF and ESI compliance will boost your brand value. In addition to boosting your brand, EPF and ESI will also save you from penal provisions.