Provident Fund (PF) and Employee State Insurance (ESI) registration are mandatory social security schemes for eligible employers in India, administered by the Employees Provident Fund Organisation (EPFO) and the Employees State Insurance Corporation (ESIC) respectively. These schemes provide retirement savings, medical benefits, and insurance coverage for employees.
When mandatory: PF registration is required for establishments with 20 or more employees (voluntary registration is possible below this). ESI registration is required for establishments with 10 or more employees (in most states) earning up to Rs. 21,000 per month (Rs. 25,000 for persons with disabilities).
Registration is done on the EPFO Unified Portal and the ESIC portal. After registration, monthly PF (ECR) and ESI contribution returns must be filed on an ongoing basis.
Answers to the questions we hear most often about PF and ESI registration in Delhi NCR.
Not mandatory, but voluntary registration is allowed and can be a good practice for employee retention.
Rs. 21,000 per month (Rs. 25,000 for employees with disabilities). Employees earning above this are not covered under ESI.
Currently 12% of basic wages from both employer and employee, subject to periodic government revisions.
You may be liable for interest and penalties on unpaid contributions from the date registration became mandatory.
Digitax Consultancy was founded on April 1, 2011, by Vishwa Jeet Dwivedi and Amit Kumar Jha, two visionaries with a passion for simplifying financial services.