EPF + ESI for your labour compliance, filed right.
India's two flagship employee-benefit schemes. EPF under the 1952 Act — mandatory at 20 employees, wage ceiling ₹15,000/month, contribution 12% + 12% (with employer's 12% split into 3.67% EPF + 8.33% EPS + 0.50% EDLI + 0.50% admin). ESI under the 1948 Act, Section 1(5) — mandatory at 10 employees earning up to ₹21,000/month, contribution 0.75% + 3.25%. Both filed via Shram Suvidha unified portal in 7-15 working days. Critical 2026 developments: Supreme Court Jan 2026 directive on raising wage ceiling within 4 months, EPF Scheme 2026 for gig workers, Aadhaar linking mandatory for ESI. We handle registration, UAN + Pehchan cards, wage-structure audit under Section 2(b), and payroll integration.
- Shram Suvidha unified portal registration
- EPF Establishment Code + ESI Employer Code
- UAN generation for all existing employees
- ECR (Electronic Challan-cum-Return) setup
- Payroll software integration (Zoho / greytHR / Keka)
- First month ECR filing + deposit guidance
What EPF and ESI cover and when they trigger
In one line: EPF is retirement savings under the 1952 Act (20-employee trigger), ESI is medical + cash benefits under the 1948 Act (10-employee trigger). Both filed on one Shram Suvidha portal.
The Employees' Provident Fund (EPF) is India's largest retirement-savings framework under the EPF Act 1952. Every establishment with 20 or more employees must register — including permanent, contract, daily-wage, and casual workers.
The Employees' State Insurance (ESI) under the ESI Act 1948, Section 1(5) provides medical + cash benefits to employees earning up to ₹21,000/month (₹25,000 for persons with disability), at 10-employee threshold.
Contribution structure:
- EPF: Employee 12% + Employer ~13% of Basic + DA up to ₹15,000/mo
- ESI: Employee 0.75% + Employer 3.25% of gross wages up to ₹21,000/mo
- Combined 15th-of-month deadline via Shram Suvidha
Key 2026 developments:
- Supreme Court, 9 Jan 2026: Directed EPFO to decide on raising ₹15K ceiling within 4 months
- EPF Scheme 2026 introduced — covers gig + platform workers, transition by Mar 2027
- Aadhaar linking mandatory for all ESI insured persons from 2026
- AI compliance monitoring launched by EPFO — flags delayed ECR + wage under-reporting
Choose EPF + ESI if you...
- You employ 20 or more people (permanent + contract + daily-wage combined) — EPF registration is mandatory under EPF Act 1952
- You employ 10 or more people earning up to ₹21,000/month gross — ESI registration is mandatory under ESI Act 1948
- You want voluntary EPF coverage under Section 1(4) even with fewer than 20 employees — attracts talent + shows compliance maturity
- You're a factory, shop, hotel, restaurant, cinema, road transport, or newspaper establishment — Section 1(5) of ESI Act auto-covers you
- You need EPF for employee tax planning — Section 80C deduction up to ₹1.5 lakh (old regime) + Section 10(11)/(12) EPF interest exemption
- You want to avoid Section 85 ESI penalties — up to 3 years imprisonment + ₹10,000 fine first offence, or 12%/year EPF interest + 5-25% Section 14B damages
Skip / delay EPF + ESI if you...
- You employ fewer than 10 people and have no plans to scale — thresholds not yet triggered; register voluntarily only if talent-attraction matters
- All your employees earn more than ₹21,000/month gross — ESI doesn't apply (still need EPF if 20+ employees, on wages up to ₹15K/mo)
- You're a pure freelancer or solo consultant with no staff — no EPF/ESI obligation until you hire
- Your establishment is in a state where ESI has not been notified — verify state-wise applicability first
What EPF + ESI compliance actually delivers
Every benefit anchored to Act section, EPFO/ESIC provision, or IT Act clause — labour compliance done properly.
EPF Act 1952 · Statutory Retirement Cover
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 creates India's largest retirement-savings framework. Every establishment with 20+ employees must register with EPFO. Contribution: 12% employee + 12% employer on Basic + DA up to ceiling of ₹15,000/month. Fund earns 8.25% interest (FY 2024-25). On retirement/resignation, corpus + interest is tax-free under Section 10(11)/(12). PF is portable via UAN — one universal number across career.
ESI Act 1948 · Medical + Cash Benefits
The Employees' State Insurance Act, 1948 provides comprehensive social security under Section 1(5) to establishments with 10+ employees earning up to ₹21,000/month (₹25,000 for persons with disability). Employee pays 0.75%, employer pays 3.25%. Covers: medical treatment at ESI hospitals (Pehchan card), sickness benefit 70% of daily wages for 91 days/year, maternity benefit 26 weeks, disability + dependent benefits. Total employer outgo: 4% of gross wages.
Section 80C · Employee Tax Saving
Employee's 12% EPF contribution qualifies for Section 80C deduction up to ₹1.5 lakh — for employees using the old tax regime. At ₹15,000 ceiling, that's ₹1,800/month × 12 = ₹21,600/year in eligible 80C, saving up to ₹6,743 income tax at 31.2% slab. Combined with LIC, PPF, or ELSS to hit ₹1.5L cap. On the employer's 12% contribution, employees also gain Section 10(11)/(12) exemption on maturity/withdrawal (subject to 5-year continuous service).
EDLI · Automatic Life Cover
The Employees' Deposit-Linked Insurance (EDLI) Scheme 1976 provides free life insurance up to ₹7 lakh to every EPF-registered employee. Employer contributes just 0.50% (capped at ₹75/month per employee). On death of an active EPF member, family receives 20× average monthly wages + 50% of average PF balance, minimum ₹2.5 lakh, maximum ₹7 lakh. Zero-effort talent-retention tool + genuine family financial security. No medical tests, no exclusions.
Shram Suvidha · Unified Filing
The Shram Suvidha Portal (Ministry of Labour) consolidates EPF, ESI, CLRA, BOCW, and ISMW registration into one login, one form, one dashboard. Post-registration, monthly compliance is streamlined: ECR upload for EPF, monthly return for ESI, single 15th-of-month deadline. Every payroll software (Zoho Payroll, RazorpayX, greytHR, Keka, ADP, SAP SuccessFactors) has native Shram Suvidha integration — deductions calculate automatically, ECR file generates as JSON/CSV, upload takes 2 minutes.
Talent-Attraction Ready
For every job posting on Naukri, LinkedIn, or Indeed, candidates filter for "PF + ESI benefits". Startups avoiding registration lose out on senior-mid talent who've built EPF balance across previous employers and don't want a career break. Similarly, ESI's Pehchan card is a real medical benefit — cashless treatment at 3,600+ ESI hospitals + tie-ups. Registration signals compliance maturity, unlocks Series-A due diligence checkboxes, and simplifies statutory audit later.
Coming soon: the full EPF + ESI registration + payroll integration flow
From Shram Suvidha signup to first ECR upload on the 12th of the month.
3-stage EPF + ESI compliance flow
Teal = Shram Suvidha registration. Gold = UAN + payroll integration. Green = monthly 15th deadline cycle.
WhatsApp us your basics
Entity type, employee count, wage bands (Basic + DA + gross), current payroll software, whether triggering EPF/ESI first time. Free threshold check + fee estimate within business hours.
Shram Suvidha registration
Unified portal signup with authorised signatory's DSC. Upload PAN, GSTIN, Shop & Establishment cert, MoA/AoA, board resolution, bank details. Submit EPF Form 5A + ESI Form 01 in single flow.
EPFO + ESIC review
Departmental verification of documents. May include telephonic clarification. Physical inspection typically only for factories with 50+ employees. Common delay: mismatched addresses between GST and Shop & Establishment — we reconcile upfront.
EPF + ESI codes issued
EPF Establishment Code (7-digit) + ESI Employer Code (17-digit) emailed. Portal logins activated: EPFO Unified for EPF, ESIC Portal for ESI. Save both codes securely — needed for every monthly filing.
UAN + Pehchan issue
Generate UAN for every EPF-eligible employee (new UAN or transfer from previous employer). Issue ESI Pehchan cards (physical + digital) for medical treatment access. Aadhaar-link all UANs and Pehchan cards — mandatory from 2026 for ESI benefits.
First payroll cycle
Configure Zoho/greytHR/Keka/ADP with both codes + wage ceilings (₹15K EPF, ₹21K ESI). First salary cycle shows separate PF + ESI line items on payslips. Section 2(b) wage-structure audit runs alongside — no artificial Basic+DA splits.
Eligibility — 6 checkpoints
Documents you'll need
Manageable set. Class 3 DSC is the item most first-time registrants don't have — we help arrange within 48 hours if needed.
Entity Documents
- PAN of the entity
- Certificate of Incorporation / Partnership Deed / LLP Agreement
- GSTIN certificate
- Shop & Establishment / Factory Licence
- MoA + AoA (Pvt Ltd)
- Board resolution authorising EPF/ESI registration
Signatory + Bank
- PAN + Aadhaar of authorised signatory
- Class 3 Digital Signature Certificate (DSC)
- Business bank account details (cancelled cheque)
- First specimen signature of authorised signatory
- Contact: email + mobile (Shram Suvidha OTP)
- Passport-size photo of authorised signatory
Employees + Premises
- Complete employee list — Basic + DA + gross wages
- Aadhaar + PAN + bank details of each employee
- Form 11 declaration (previous EPF membership)
- Nominee details for EPF + EDLI
- Registered office proof (electricity bill / rent + NOC)
- Wage records for last 3 months (if pre-existing operation)
Calculate EPF + ESI cost for your team
Enter Basic + DA, gross wages, employee count. Instantly see which schemes trigger, employer + employee shares, per-employee + team-wide monthly cost.
EPF vs ESI · Side-by-side
Same portal, same deadline, radically different purpose. EPF is retirement + life cover. ESI is medical + sickness + maternity.
| Criteria | EPF (Provident Fund) | ESI (Health Insurance) |
|---|---|---|
| Governing Act | EPF Act 1952 (Section 1(3)) | ESI Act 1948 (Section 1(5)) |
| Employer threshold | 20 employees (any type) | 10 employees (some states 20) |
| Wage ceiling for coverage | Basic + DA up to ₹15,000/mo | Gross wages up to ₹21,000/mo (₹25K disability) |
| Employee contribution | 12% of Basic + DA | 0.75% of gross wages |
| Employer contribution | 12% (split: 3.67% EPF + 8.33% EPS) | 3.25% of gross wages |
| Additional employer costs | 0.50% EDLI (cap ₹75) + 0.50% admin (min ₹75) | None — 3.25% is total |
| Total employer outgo | ~13% of Basic + DA | 3.25% of gross |
| Return + Deposit deadline | ECR + payment by 15th of following month | Return + payment by 15th of following month |
| Portal | Shram Suvidha + EPFO Unified | Shram Suvidha + ESIC Portal |
| Benefits to employee | Retirement corpus + pension (EPS) + ₹7L life cover (EDLI) | Free medical care + sickness + maternity + disability benefits |
| Interest / damages on delay | 12%/yr interest + Section 14B damages 5-25% | 12%/yr interest + Section 85 prosecution up to 3 yrs jail |
| Our fee (single registration) | ₹2,500 EPF-only | ₹2,499 ESI-only · ₹5,000 both bundled |
Where every rupee goes · At ₹15K Basic + ₹21K gross
Employee ₹1,958/mo (deducted from salary). Employer ₹2,633/mo (above CTC). Combined ₹4,591/mo · ₹55,092/yr per employee. Every component anchored to specific benefit.
From codes to first ECR — key dates
4 immediate milestones. Compressed timeline: register early in month, first ECR due by 15th of following month.
EPF + ESI codes issued
EPF Establishment Code + ESI Employer Code emailed within 7-15 working days. EPF also generates establishment login on EPFO Unified Portal. ESI generates login for ESIC portal. Both codes are required for ECR filing + employee UAN generation.
Save codes securely — needed monthlyUAN generation + employee onboarding
Every employee needs a Universal Account Number (UAN) — one lifetime PF number across all jobs. Employees with prior UAN carry it forward. New employees get UAN issued in 24-48 hours via EPFO portal. Simultaneously issue ESI Pehchan cards — physical + digital, needed for hospital treatment. Payroll software auto-imports UANs.
Aadhaar-linked UAN mandatory from 2026First payroll cycle with EPF/ESI deductions
Configure payroll software (Zoho, greytHR, Keka, ADP) with Establishment + Employer codes. First salary cycle post-registration must show PF and ESI as separate line items on payslips: PF (12% of Basic capped at ₹1,800), ESI (0.75% of gross capped at ~₹158 at ₹21K). Employer side: 12% + 3.67% + 8.33% + 0.50% + 0.50% for EPF portion, 3.25% for ESI.
ECR file format is strict — payroll must generate valid JSON/CSVFirst ECR + ESI return upload
By the 15th of the month following your first payroll cycle, upload the ECR (Electronic Challan-cum-Return) to EPFO Unified Portal and file ESI monthly return. Pay combined employer + employee dues via net banking / NEFT. Late filing beyond 15th = 12% per annum interest from due date + Section 14B damages up to 25%. Section 85 ESI = up to 3-year imprisonment + ₹10,000 fine.
ECR + ESI return are separate submissions on separate portals6 common EPF + ESI mistakes — and how to avoid them
#1 mistake: splitting Basic + DA to keep PF ceiling low (ruled illegal by SC 2019). Costliest: missing 15th deadline (12%/yr + 25% damages).
Splitting Basic + DA to keep PF ceiling below ₹15,000
A widespread practice — companies split what should be Basic + DA into arbitrary "special allowance", "conveyance", "meal allowance" categories to keep PF wages below ₹15,000. This was ruled unlawful by the Supreme Court in the Vivekananda Vidyamandir case (Feb 2019) — any allowance ordinarily, necessarily, uniformly paid to all employees is deemed part of Basic wages under Section 2(b) of the EPF Act. EPFO now audits salary breakups aggressively via AI compliance monitoring.
Excluding contract + daily-wage workers from headcount
The 20-employee EPF threshold and 10-employee ESI threshold include every person on payroll — permanent, contract, daily-wage, casual, or apprentice. A common trap: a business with 15 permanent staff + 8 contract workers thinks EPF doesn't apply. Wrong — headcount is 23, EPF is mandatory. Missing this means retrospective registration + interest + damages when audit hits.
Missing the 15th-of-month deadline
The single most common EPF compliance failure. ECR + deposit is due by 15th of every month — no extension for Sundays or holidays (payment date does NOT roll forward). Missing even by a day triggers 12% per annum interest from the 16th, plus Section 14B damages: 5% (up to 2 months), 10% (2-4 months), 15% (4-6 months), 25% (beyond 6 months). For a company with ₹2L monthly PF liability, one month's delay = ₹2,000-40,000 in penalties.
Not generating UAN for every employee within first month
Every EPF-eligible employee must have a UAN generated + Aadhaar-linked within their first month of joining — even if you're still setting up their bank details. Employers who batch UAN generation quarterly end up with employees who've left before UAN issue, creating orphan PF contributions that neither the employer nor employee can access. EPFO has flagged this via AI compliance monitoring in 2026.
Ignoring Aadhaar linking mandate from 2026 for ESI
From 2026, Aadhaar linking is mandatory for all insured persons under ESI to receive medical/cash benefits. Employees who haven't linked their Aadhaar to ESI can't use their Pehchan card for hospital treatment — creating an emergency situation if genuine illness strikes. Employer's failure to facilitate Aadhaar linking becomes a labour grievance.
Treating EPF withdrawal as tax-free without checking 5-year rule
EPF withdrawal is tax-free under Section 10(12) only if the employee has continuous service of 5 or more years (across employers, if UAN-linked). Withdrawal before 5 years — even at retirement — attracts TDS at 10% (with PAN) or 30% (without PAN) under Section 192A, on entire withdrawal amount. Employees are often surprised at tax notices post-withdrawal. Employer HR should proactively communicate this at exit.
Pick your engagement
One scheme? Both? Full-year monthly ECR + ESI return retainer? Match the tier to your headcount.
- EPF Establishment Code (or ESI Employer Code)
- Shram Suvidha portal registration
- DSC + document coordination
- UAN generation guidance (EPF)
- Pehchan card guidance (ESI)
- Payroll software configuration hint
- First month ECR / return guidance
- Ongoing monthly compliance via retainer
- Both EPF + ESI registration
- Single Shram Suvidha application
- UAN + Pehchan card for all existing employees
- Payroll integration (Zoho / greytHR / Keka)
- Section 2(b) wage-structure compliance audit
- Employee onboarding kit + declarations
- Aadhaar-linking verification (mandatory 2026)
- First month ECR + ESI return filing
- Ongoing monthly compliance via retainer
- Everything in Bundle tier
- Monthly ECR + ESI return filing (12 months)
- Bank challan generation + payment coordination
- AI compliance monitoring alerts
- Wage-structure audits (Section 2(b) protection)
- Employee grievance handling
- EPF/ESI inspector support
- Annual reconciliation + Form 3A/6A
- Exit formalities + withdrawal advisory
- Renewal tracking with advance reminders
- Scale-pricing: +₹9,999/yr for 100+ employees
Prefer a call back?
Leave your number and a good time — we call within business hours (Mon–Sat, 10 am–7 pm) about EPF + ESI Registration.
Labour compliance
The Tax Paramarsh desk
"EPF and ESI look like standard payroll paperwork until you hit your first EPFO inspection. Then you discover the wage-structure audit is really the whole game. The Vivekananda Vidyamandir judgment in February 2019 changed everything — the Supreme Court held that any allowance ordinarily, necessarily, uniformly paid to all employees is part of Basic wages under Section 2(b), regardless of what you call it. Companies that had ₹15K Basic + ₹35K special allowance to keep PF contribution low were suddenly looking at retrospective demand notices covering years. In 2026 EPFO added AI-powered compliance monitoring that flags exactly this pattern. Every engagement we do now includes a Section 2(b) wage-structure audit — either before registration for new setups, or as remediation for existing establishments. We've saved clients ₹18L+ in avoided back-dues in a single case. The other 2026 shift: Supreme Court on 9 January directed EPFO to raise the ₹15K wage ceiling — likely to ₹21K or ₹25K by mid-year. When that hits, every employer's EPF liability jumps 40-67%. Our retainer clients get the transition-plan sheet the day the notification drops."
What employers say after EPF + ESI with us
Common questions
Straight answers. Still curious? WhatsApp us anything.
What is EPF and when does it apply?
The Employees' Provident Fund (EPF) is a statutory retirement-savings scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, administered by the Employees' Provident Fund Organisation (EPFO), Ministry of Labour.
Trigger: Applies mandatorily to every establishment employing 20 or more persons — including permanent, contract, daily-wage, and casual workers. Wage ceiling: Basic + DA up to ₹15,000/month.
Contribution:
- Employee: 12% of Basic + DA
- Employer: 12% (split: 3.67% to EPF + 8.33% to EPS, capped at ₹1,250/month on ₹15K wage)
- Additional employer costs: 0.50% EDLI (life insurance, capped at ₹75) + 0.50% admin (min ₹75)
Total employer outgo: ~13% of Basic + DA. Interest rate on EPF corpus: 8.25% for FY 2024-25.
What is ESI and how does it differ from EPF?
The Employees' State Insurance (ESI) is a social-security scheme under the Employees' State Insurance Act, 1948, administered by the Employees' State Insurance Corporation (ESIC). It provides medical care + cash benefits — not retirement savings.
Trigger: Section 1(5) applies to establishments with 10 or more persons (20 in a few state notifications) earning gross wages up to ₹21,000/month (₹25,000 for persons with disability). Covers factories, shops, hotels, restaurants, cinemas, road transport, newspaper establishments.
Contribution:
- Employee: 0.75% of gross wages
- Employer: 3.25% of gross wages
- Total: 4% — no separate admin/EDLI
Key benefits: Cashless medical treatment at ESI hospitals (Pehchan card), sickness benefit 70% of daily wages for 91 days, maternity benefit 26 weeks, disability + dependent benefits.
Do I need both EPF and ESI?
Depends on your headcount and wage structure — the two schemes have independent triggers:
- Less than 10 employees: Neither EPF nor ESI mandatory. Consider voluntary EPF under Section 1(4) for talent attraction.
- 10-19 employees earning ≤ ₹21K/month: ESI mandatory, EPF not yet triggered.
- 10-19 employees but all earning > ₹21K: Neither mandatory. Rare but possible in tech consultancies.
- 20+ employees, mix of salary bands: EPF mandatory for all (up to ₹15K wage ceiling), ESI mandatory only for those earning ≤ ₹21K.
Check both thresholds independently. Our threshold-tracker flags either trigger 2 employees in advance.
Is Uttarakhand covered under EPF and ESI?
Yes — both EPF and ESI are Central Acts and apply pan-India, including Uttarakhand. Unlike Professional Tax (which Uttarakhand doesn't levy), EPF/ESI are non-negotiable Central legislation.
Uttarakhand-specific notes:
- Every establishment with 20+ employees needs EPF
- Every establishment with 10+ employees earning ≤ ₹21K needs ESI
- Same 15th-of-month deadline, same Shram Suvidha portal
Uttarakhand's advantage is Professional Tax (₹0), not EPF/ESI. EPF + ESI apply here identically to Maharashtra, Karnataka, or any other state.
What does EPF/ESI registration cost in 2026?
Government fee: Nil. Registration on Shram Suvidha Portal is free — no state or central government fee for either EPF or ESI registration.
Our professional fees:
- EPF-only or ESI-only: ₹2,500 one-time
- Both EPF + ESI bundle: ₹5,000 one-time
- Labour Compliance Retainer (annual): ₹40,000/year — includes monthly ECR + ESI return filing for 12 months, wage audits, AI compliance monitoring, inspector support
Plus GST @ 18% on our fees.
Ongoing costs post-registration — these are payroll pass-through (not our fees):
- EPF: 12% employee + ~13% employer on Basic + DA (up to ₹15K ceiling)
- ESI: 0.75% employee + 3.25% employer on gross wages (up to ₹21K ceiling)
How is EPF wage capped at ₹15,000?
The wage ceiling for mandatory EPF coverage is Basic + Dearness Allowance up to ₹15,000/month. This ceiling has been unchanged since September 2014.
Applied practically:
- Basic + DA ≤ ₹15,000: Employee + employer pay 12% of actual Basic + DA
- Basic + DA > ₹15,000: Statutory minimum contribution is 12% of ₹15,000 = ₹1,800/month. Employer can choose to contribute on actual wages for higher retirement corpus, but employee's statutory obligation remains 12% of ₹15K = ₹1,800.
EPS cap: Regardless of Basic + DA, EPS contribution (from employer's 12%) is capped at ₹1,250/month (8.33% of ₹15K).
Supreme Court status: On 9 January 2026, the Supreme Court directed Central Government + EPFO to decide within 4 months on raising the wage ceiling (likely to ₹21K or ₹25K). Until officially notified, ₹15K continues.
What are the penalties for late EPF or ESI payment?
Both schemes have strict penalty structures:
EPF late payment:
- Interest: 12% per annum from 16th of the following month (Section 7Q of EPF Act)
- Damages under Section 14B: 5% (up to 2 months delay), 10% (2-4 months), 15% (4-6 months), 25% (beyond 6 months)
For a company with ₹2 lakh monthly PF liability, one month delay = ₹2,000 interest + ₹10,000 damages = ₹12,000. Two months delay = ~₹24,000 in penalties.
ESI late payment:
- Interest: 12% per annum on unpaid contribution
- Section 85 prosecution: Up to 3 years imprisonment + ₹10,000 fine for first offence. Up to 5 years for subsequent offences.
- Damages: Discretionary, up to 25% of unpaid dues
Both interest + damages are separately levied and cumulative.
Is EPF withdrawal tax-free at retirement?
Depends on years of continuous service:
- 5+ years continuous service: EPF withdrawal is fully tax-free under Section 10(12) of Income Tax Act. Continuous service includes previous employer service if UAN was transferred (not withdrawn).
- Less than 5 years continuous service: Entire withdrawal taxable under Section 192A. TDS at 10% with PAN, 30% without PAN or below Rs 50,000 threshold.
Better alternative to early withdrawal: Transfer via UAN. New employer continues on same UAN. 5-year clock keeps running. Zero tax at eventual retirement withdrawal.
Special note: Interest earned on EPF is tax-free while in service under Section 10(11). Post-retirement, interest continues for 3 years even if account is inoperative — this interest is also tax-free during the 3-year window.
How long does EPF/ESI registration take?
Total 7-15 working days via Shram Suvidha portal:
- Day 1-2: Document collection + DSC verification + form pre-fill
- Day 3: Submit both applications on Shram Suvidha
- Day 5-10: EPFO/ESIC department verification (may include physical inspection for larger establishments)
- Day 10-15: Codes issued — EPF Establishment Code + ESI Employer Code emailed + downloadable
Delays typically caused by:
- Document mismatches (address inconsistency, PAN name variations)
- DSC not registered on Shram Suvidha
- GST/PAN cross-verification issues
- Physical inspection scheduling for factories with 50+ employees
Our pre-filing document reconciliation eliminates delays — typical case closes in 10-12 days.
When should I register?
Within 30 days of first crossing the threshold:
- ESI: Within 30 days of crossing 10 employees earning ≤ ₹21K/month
- EPF: Within 30 days of crossing 20 employees (any wage band)
Recommended proactive timeline:
- Hit 8 employees earning ≤ ₹21K = start ESI paperwork
- Hit 18 employees = start EPF paperwork
- Register 2-3 employees before threshold = codes ready when threshold hits
Retrospective registration risk: If EPFO discovers you crossed threshold months ago without registering, back-dues from that date + interest + damages apply — often 20-30% of unpaid principal.
What are the monthly compliance dates?
Both EPF and ESI have the same deadline: 15th of the following month.
EPF monthly compliance:
- Generate ECR file from payroll software
- Upload ECR to EPFO Unified Portal
- Pay combined employer + employee dues via net banking / NEFT
- Deadline: 15th of following month (no roll-forward for Sundays/holidays)
ESI monthly compliance:
- Generate monthly return from payroll
- Upload to ESIC portal
- Pay employer 3.25% + employee 0.75%
- Deadline: 15th of following month
Additional annual filings:
- EPF: Annual return of Contribution (Form 3A + 6A)
- ESI: Annual return of Contribution + Register of Employees
What if I miss the 15th deadline?
Consequences kick in from the 16th of the month:
EPF late payment:
- Interest at 12% per annum from the 16th (Section 7Q)
- Damages under Section 14B — starts at 5% and can go up to 25% depending on how many months delayed
- Repeated defaults trigger EPFO scrutiny + potential Section 8B recovery proceedings + bank account attachment
ESI late payment:
- Interest at 12% per annum
- Damages up to 25% at inspector's discretion
- Prosecution under Section 85 — up to 3 years imprisonment + ₹10,000 fine for first offence
- Repeated non-payment can result in registration cancellation + directors' personal liability
Practical protection: Our retainer files ECR + ESI return by 12th of every month — 3-day buffer against portal outages, bank holidays, or last-minute payroll adjustments.
Can I use voluntary EPF coverage for smaller teams?
Yes — under Section 1(4) of the EPF Act, an establishment with fewer than 20 employees can voluntarily opt in to EPF coverage by agreement between the employer and majority of employees.
Why startups do this:
- Talent attraction: Senior candidates filter out non-EPF jobs during career search — voluntary coverage keeps you in the running
- Continuity for employees: Employees with prior UAN can keep contributing on same UAN, preserving the 5-year continuous service clock
- Signals compliance maturity to Series-A investors during due diligence
Once you opt in, you're bound by all EPF rules — 12% deduction, 15th-of-month ECR, EDLI, admin charges, everything. Can't opt out later; the establishment stays covered even if headcount drops below 20.
Best practice: Voluntary coverage from day 1 if hiring above ₹6L CTC; formal mandatory registration when hitting 20 employees.
What are the payroll integration steps?
Post-registration, integrate EPF/ESI into your payroll software:
- Enter Establishment Code + Employer Code in payroll admin settings
- Import employee UANs (from EPFO portal export)
- Set wage ceilings: EPF at ₹15,000 Basic + DA, ESI at ₹21,000 gross
- Configure contribution split: EPF 12% + 12% (auto-split into 3.67% + 8.33% + 0.50% + 0.50% on employer side), ESI 0.75% + 3.25%
- Enable ECR file generation — payroll should output JSON/CSV in EPFO-mandated format
- Enable ESI monthly return generation — separate output for ESIC portal
- Test with first payroll cycle — verify PF/ESI line items on payslips + reconcile with challan amount
Supported payroll platforms: Zoho Payroll, RazorpayX Payroll, greytHR, Keka, ADP, SAP SuccessFactors, Darwinbox — all have native Shram Suvidha integrations.
Are gig workers covered under EPF/ESI?
Historically excluded, but changing rapidly in 2026:
- EPF Scheme 2026 (Ministry of Labour) incorporates provisions for gig and platform workers — Ola, Uber, Zomato, Swiggy, urban company workers. Transition to be completed by March 2027.
- Code on Social Security 2020 — creates dedicated social security fund for gig/platform workers with employer contribution of 1-2% of turnover
- Currently gig workers who are formal payroll employees of a company (not commission-based) are already covered under standard EPF/ESI thresholds
Practical implication: If you engage workers on genuine gig terms (deliverables-based, no fixed hours, own equipment), traditional EPF/ESI may not apply — but the new EPF Scheme 2026 provisions will bring most such arrangements into some form of social security coverage. Watch this space through 2026-27.
Does EPF apply to employees drawing more than ₹15,000?
Two scenarios:
- Employee at joining, Basic + DA ≤ ₹15,000: Full EPF mandatory. If salary later crosses ₹15K, EPF continues on ₹15K ceiling (or actual, at employer's policy)
- Employee at joining, Basic + DA > ₹15,000: Only mandatory if employee opts in under Form 11. Otherwise, employee is an excluded employee for statutory EPF, though employer can still voluntarily contribute for talent-retention purposes
Excluded employee (Section 2(f)): An employee who at the time of first joining any establishment was drawing wages exceeding the ceiling and had not been a member of EPF earlier. Once an employee has a prior UAN, they can't become excluded; EPF continues.
Recommendation: Even for > ₹15K joinees, offer EPF coverage — most senior candidates expect it, and it simplifies HR policy administration.
Let's get your EPF + ESI in 7-15 days.
WhatsApp us your headcount + wage bands + entity type. Free trigger-check within business hours. Both codes filed on Shram Suvidha. Section 2(b) audit + payroll integration included.