Welcome to ROKADH - Your Trusted Partner for Financial Success
Business Registration

Employee Social Welfare Schemes

★★★★☆
(130)
Employee Social Welfare Schemes are crucial initiatives designed to ensure the well-being, security, and satisfaction of your workforce. From provident fund registration to employee state insurance, these schemes provide a framework that not only fulfills statutory obligations but also builds long-term trust and loyalty among employees. A compliant, protected workforce leads to stronger operations and a more reputable organization. Whether you're a startup or a growing business, implementing these welfare measures reflects a commitment to ethical, employee-centric growth.
Employees' Provident Fund (EPF) Registration
  • Mandatory for eligible organizations
  • Ensures employee retirement security
  • Monthly employer-employee contribution required
  • Managed by EPFO under government regulation
  • Enhances employee trust and retention
Employees' State Insurance Corporation (ESIC) Registration
  • Covers medical and cash benefits
  • Applicable to establishments with 10+ employees
  • Offers maternity, sickness, and injury support
  • Contributions by employer and employee
  • Regulated under ESIC Act, 1948
Your Cart
Your cart is empty
Browse our services and add some services in cart!
🇮🇳 +91
Item added to cart

Employee Benefits in India

Employee Social Welfare Schemes

Explore the mandatory social welfare schemes for employees in India
and their respective advantages and disadvantages for employers.

Employees' Provident Fund (EPF) Registration

The Employees' Provident Fund (EPF) is a retirement benefit scheme mandated under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and managed by the Employees' Provident Fund Organisation (EPFO). It applies to establishments employing 20 or more employees, although smaller establishments can opt in voluntarily. Under this scheme, both employer and employee contribute 12% of the employee's basic wages to the fund. The employee can withdraw this amount upon retirement or under specific conditions such as unemployment, housing, or medical emergencies. EPF ensures financial security after retirement and promotes savings among employees while also allowing tax deductions under Section 80C of the Income Tax Act.

+ Advantages

  • Retirement Security
    Builds a tax-free retirement corpus for employees.
  • Tax Benefits
    Contributions are deductible under Section 80C.
  • Employer Branding
    Enhances reputation as a responsible employer.
  • Loan Facility
    Employees can avail partial advances for housing or medical use.
  • Interest Income
    Government declares annual interest on accumulated corpus.
  • Transferable Account
    Account remains intact across job changes.
  • Regulated by EPFO
    Government oversight ensures fund safety and stability.

- Disadvantages

  • Mandatory for Eligible Employers
    Non-compliance leads to penalties.
  • Monthly Contribution Burden
    Employers must contribute regularly.
  • Administrative Workload
    Requires monthly filing and compliance.
  • Limited Liquidity
    Employees can't easily access full funds until retirement.
  • Strict Audit Norms
    Subject to inspection and audits by EPFO.
  • Higher Payroll Cost
    Increases employer's cost-to-company (CTC).
  • Inflexibility in Investment
    Employees have no control over fund investments.

Employees' State Insurance Corporation (ESIC) Registration

The Employees' State Insurance (ESI) scheme is a self-financed social security and health insurance program regulated by the Employees' State Insurance Act, 1948, and managed by the Employees' State Insurance Corporation (ESIC). It is applicable to establishments employing 10 or more employees (threshold varies by state) where employees earn less than ₹21,000/month. The employer contributes 3.25% and the employee 0.75% of wages towards the ESI fund. The scheme offers medical, maternity, disability, and unemployment benefits to insured employees and their dependents. ESIC registration is mandatory for eligible employers, and coverage extends to employees from day one of joining.

+ Advantages

  • Medical Benefits
    Free medical treatment for employees and their families.
  • Maternity and Disability Support
    Financial and medical support during maternity, injury, or disability.
  • Unemployment Allowance
    Provides temporary financial relief in job loss.
  • Covers Dependents
    Family members also receive medical care.
  • Immediate Coverage
    Employees are covered from the first day of employment.
  • Reduces Employer's Healthcare Burden
    Government bears most healthcare expenses.
  • Legal Compliance
    Fulfills statutory health insurance obligations.

- Disadvantages

  • Limited to Low-Income Workers
    Only applicable to employees earning ≤ ₹21,000.
  • Mandatory for Eligible Employers
    Compulsory if employee count threshold is met.
  • Contribution Liability
    Both employer and employee must contribute.
  • Paperwork and Filings
    Monthly filings and inspections by ESIC officers.
  • Limited Choice of Hospitals
    Restricted to ESIC network hospitals.
  • Audit Risk
    Subject to compliance checks and legal scrutiny.
  • No Coverage Above Threshold
    Employees earning above limit are excluded.

© ROKADH FINANCIAL SERVICES PRIVATE LIMITED