How to Register an Organization with EOBI

EOBI registration of all private organizations is compulsory in accordance with EOBI Act 1976. If an organization has five or more employees, then it is must to register with EOBI. According to EOBI Act 1976:

It applies to every industry or establishment wherein five or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months, and shall continue to apply to every such industry or establishment even if the number of persons employed therein is, at any time after this Act becomes applicable to it, reduced to less than five.

EOBI Act 1976 (PDF)

This means that if at any time during a year, an organization's employees reach five or more, then this act applies on such organization even if the number of employees reduce to less than five later on. EOBI Act 1976 has also defined various penalties and fines if a person fails to pay any contribution or makes a misrepresentation or obstructs any official of the institution in the discharge of his duties. Such penalties include imprisonment, fine or both. 

This makes it necessary to register organization with EOBI. Registration with EOBI is a very simple process. A simple PR-01 registration form has to be filled by the employer along with a PR-02A form which contains the list of employees. Both of these forms should be provided to the nearest EOBI office, which will complete the registration process in two or three days and allot a registration number to the organization. The employees will receive the registration numbers within a month whereas the registration cards will take two or three months. These employees are now called insured persons after registration with EOBI and they will be eligible for the benefits of EOBI including pension and grants. Moreover, they will also be able to avail the benefits of Workers Welfare Board. 

After registration, an employer has to submit his monthly dues to EOBI  at the start of each month. The current rate of contribution per employee is 780 Rs. in which the employees' share is 130 Rs. and  650 Rs. is contributed by the employer. EOBI doesn't impose any other charges on the employers on monthly or yearly basis except for fines which arise due to late payments. There are no other hidden charges which the employer has to pay except the above mentioned amount.