PF (EPF) + ESI (ESIC) Registration for New Employers — Complete Guide (2026)
PF + ESI registration for new employers. From ₹4,499. Eligibility, process, documents, monthly filing, EPF withdrawal.
PF (EPF) and ESI (ESIC) are mandatory social security schemes for Indian employers with employees. In this guide, we cover the registration process, eligibility, monthly filing, and the new EPFO / ESIC portals.
What is EPF (Employees' Provident Fund)?
EPF is a social security scheme managed by EPFO (Employees' Provident Fund Organisation). Both employer and employee contribute 12% of basic + DA. The corpus provides retirement savings for employees. Earlier governed by the EPF & MP Act, 1952; since 21 November 2025 by the Code on Social Security, 2020, with the EPF, EPS and EDLI Schemes, 2026.
What is ESI (Employees' State Insurance)?
ESI is a health + social security scheme managed by ESIC. Both employer (3.25%) and employee (0.75%) contribute on gross salary. The scheme provides medical, sickness, maternity, and disability benefits to employees. Earlier governed by the ESI Act, 1948; now by Chapter IV of the Code on Social Security, 2020.
Who Needs EPF Registration?
- Every establishment with 20 or more employees, regardless of industry (earlier Section 1(3) of the EPF Act; now the Code on Social Security, 2020)
- The PF threshold is set centrally, not state by state
- Voluntary registration: any employer can register even if below threshold
- Once registered, mandatory to cover all employees earning basic + DA ≤ ₹15,000/month
- Employees whose PF wages exceed ₹15,000/month when they first join, and who are not already PF members, are not compulsorily covered; they can be enrolled voluntarily
Who Needs ESI Registration?
- Every establishment with 10 or more employees (even one employee in hazardous processes); under the Code, ESIC coverage extends across India rather than only notified areas
- Covers all employees earning gross salary ≤ ₹21,000/month
- Once registered, all eligible employees must be enrolled
Documents Required
- PAN of the company / firm
- GST registration certificate (if applicable)
- Certificate of Incorporation (for companies) / LLP agreement (for LLPs)
- PAN + Aadhaar of all employees
- Bank account details of employees
- Salary structure (basic + DA + other components)
- Joining date of each employee
- Photographs of authorised signatory
EPF Registration Process
Step 1: Get Establishment ID
Apply online through the common EPFO and ESIC registration on the Unified Shram Suvidha Portal (or at incorporation through AGILE-PRO-S). Submit: PAN, GST, COI, address proof, bank details. The establishment code is generated online; allow a few working days for any EPFO query.
Step 2: Activate UAN for Employees
For each employee, generate UAN (Universal Account Number) and activate it. UAN links all PF accounts of an employee across employers.
Step 3: File Monthly ECR
File ECR (Electronic Challan cum Return) every month for all employees. Pay the contribution via netbanking before the 15th of the next month.
ESI Registration Process
Step 1: Apply for Employer Code
Apply through the same Shram Suvidha common registration (or AGILE-PRO-S at incorporation). Submit: PAN, GST, COI, address proof, bank details. The ESIC employer code is generated online.
Step 2: Enroll Employees
Enroll all eligible employees in the ESI portal. Get their insurance number (IP number).
Step 3: File Monthly Return
File monthly return + challan for all employees. Pay the contribution via netbanking before the 15th of the next month.
Cost
| Service | Cost |
|---|---|
| EPF + ESI registration (combined) | From ₹4,499 |
| EPF only registration | Quoted on scope |
| ESI only registration | Quoted on scope |
| Monthly ECR filing (per month) | From ₹1,299 |
| Monthly ESI return (per month) | From ₹899 |
| EPF + ESI annual package | Quoted on headcount |
Penalty for Non-Compliance
| Violation | Penalty |
|---|---|
| Late EPF payment | Interest at 12% a year plus damages (earlier Sections 7Q and 14B of the EPF Act; now the Code on Social Security, 2020) |
| Late EPF filing | Inspection, assessment of dues and penalty under the Code |
| Late ESI payment | Interest at 12% a year plus possible damages |
| Late ESI filing | Inspection, assessment of dues and penalty under the Code |
| Failure to register (EPF/ESI) | Dues assessed from the date coverage applied, with interest, damages and penalty under the Code |
Frequently Asked Questions
Q: Is PF + ESI mandatory for small businesses?
A: PF: 20+ employees. ESI: 10+ employees (even one in hazardous processes). If your business is below the threshold, registration is not mandatory. But voluntary registration is recommended for employee benefits + retention.
Q: What is the EPF contribution rate?
A: 12% employer (basic + DA) + 12% employee = 24% of basic + DA. Plus 0.5% employer for EDLIS (life insurance).
Q: What is the ESI contribution rate?
A: 3.25% employer (gross salary) + 0.75% employee = 4% of gross salary. Wage ceiling: ₹21,000/month.
Q: Can a director be covered under EPF / ESI?
A: EPF: only if the director is also an employee drawing wages under a contract of employment (for example a whole-time director on the payroll) and the establishment is covered; a non-executive director is not. ESI: only if an employee with wages ≤ ₹21,000/month.
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