Why EPF and ESI matter
EPF (Employees Provident Fund) and ESI (Employees State Insurance) are India two biggest mandatory social-security schemes for organised-sector workers. For employers, they are among the most regulated compliance areas — and lapses attract steep penalties.
Coverage thresholds
EPF (EPFO)
- Mandatory once the establishment employs 20 or more persons
- Voluntary coverage allowed below that
- Applies to employees earning up to ₹15,000 per month
ESI (ESIC)
- Mandatory once the establishment employs 10 or more persons (some states: 20)
- Covers employees earning up to ₹21,000 per month (₹25,000 for disabled)
- Operates only in areas formally notified under the ESI Act
Contribution rates
EPF
| Contributor | Rate |
|---|---|
| Employee | 12% of basic + DA |
| Employer | 12% (8.33% to EPS, 3.67% to EPF) |
| EDLI | 0.5% (employer, capped) |
| Admin charges | 0.5% (employer) |
ESI
| Contributor | Rate |
|---|---|
| Employee | 0.75% of gross |
| Employer | 3.25% of gross |
Registration process
EPF
- Visit unifiedportal-emp.epfindia.gov.in
- Click Establishment Registration
- Shram Suvidha ID + OTP + employer details
- Upload PAN, incorporation / partnership docs, address proof, cancelled cheque
- Get the Establishment Code
ESI
- Visit esic.in
- Go to Employer → Sign Up
- Create user, fill Form 01
- Upload documents and submit
- 17-digit ESI Code is generated immediately
Monthly compliance
- EPF ECR (Electronic Challan cum Return) — by 15th of every month
- ESI contributions — by 15th of every month
- Late payment interest: 12% p.a. for both
- Damages up to 25% of contribution under Section 14B (EPF)
Common employer mistakes
- Misclassifying employees as contractors to skip registration
- Under-reporting basic wages to reduce contribution
- Missing the 15th deadline — leads to compounded damages
- Not running a monthly reconciliation between HR and finance
Bizotic handles EPF, ESI, PT registrations and monthly compliance as a bundled service.
