PF & ESIC Registration: Who Needs It, Benefits & How to Register
EaseVyapar Admin
April 22, 2026
PF and ESIC — Why They Matter
Provident Fund (PF) and Employee State Insurance (ESIC) are two pillars of India's statutory social security framework for employees. Together, they provide retirement savings, healthcare, sickness benefits, and insurance cover — paid jointly by employer and employee.
Failure to register when required or non-payment of contributions can result in penalties, interest and even criminal prosecution of the employer.
Provident Fund (EPF) — Applicability
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies to:
- Every establishment employing 20 or more employees
- Certain specified industries with 10 or more employees (e.g., mines, plantations)
- Voluntary registration is possible for establishments with fewer than 20 employees
Once the threshold is crossed, registration must be obtained within 30 days.
EPF Contribution Rates
| Component | Employee Contribution | Employer Contribution |
|---|---|---|
| EPF (Provident Fund) | 12% of Basic + DA | 3.67% of Basic + DA |
| EPS (Pension Scheme) | — | 8.33% (on ₹15,000 max) |
| EDLI (Life Insurance) | — | 0.5% (on ₹15,000 max) |
| Admin charges | — | 0.5% |
| Total | 12% | ~13% |
ESIC — Applicability
The Employees' State Insurance Act, 1948 applies to:
- Non-seasonal factories and establishments employing 10 or more employees in notified areas
- Employees earning a gross salary up to ₹21,000 per month (₹25,000 for persons with disability)
ESIC Contribution Rates
| Contributor | Rate |
|---|---|
| Employee | 0.75% of gross wages |
| Employer | 3.25% of gross wages |
| Total | 4.00% |
Employees earning ≤ ₹176/day are exempt from their contribution share.
Benefits of ESIC Coverage
- Medical benefit: Full medical care for insured employee and family
- Sickness benefit: 70% of wages for up to 91 days/year
- Maternity benefit: 100% wages for 26 weeks
- Disability benefit: 90% wages (permanent disablement)
- Dependent benefit: Death compensation to family
- Funeral expenses: ₹15,000 (one-time)
Documents for PF Registration
- Business PAN card
- GST registration certificate
- Registered office address proof
- Bank account details and cancelled cheque
- List of employees with salary details
- DSC of authorized signatory
Monthly Compliance Calendar
- EPF: Deposit by 15th of following month; file ECR by 25th
- ESIC: Deposit by 15th of following month; half-yearly return by April 11 and October 11
Penalties for Non-Compliance
- PF: Interest @ 12% p.a. on delayed deposits + damages of 5% to 25% of arrears
- ESIC: Simple interest @ 12% p.a. + penalty up to 3× the amount in arrears; prosecution possible
Need help with registration or monthly compliance? EaseVyapar handles PF and ESIC end-to-end — registration, monthly ECR filing, and challan generation.