Employer enrolment under EPF and ESI, done before the inspection notice arrives.
Provident fund and employees' state insurance registration are triggered by headcount, not by choice, and the liability starts from the date the threshold is crossed — not from the date you get around to registering. Late registration means arrears, interest and damages computed from that earlier date. We assess applicability, register the establishment on the Shram Suvidha portal and set up the monthly filing so it runs on time from the first month.
When registration becomes compulsory
EPF
ESI
Headcount trigger
20 or more employees
10 or more employees; 20 in shops and certain establishments in Tamil Nadu under the state notification
Wage coverage
Employees drawing basic plus DA up to ₹15,000 must be covered; above that, coverage is optional by joint request
Employees drawing gross wages up to ₹21,000 per month, and up to ₹25,000 for employees with disability
Employee contribution
12% of basic plus DA
0.75% of gross wages
Employer contribution
12%, split 8.33% to pension and 3.67% to PF, plus administrative charges
3.25% of gross wages
Monthly due date
15th of the following month
15th of the following month
Headcount includes contract and casual staff. Employees engaged through a contractor, temporary hands and part-timers all count towards the threshold, and the principal employer is responsible if the contractor defaults. Businesses that believe they are below the limit because they count only staff on their own payroll are the ones that get assessed under Section 7A.
Documents required
PAN of the establishment and of the proprietor, partners or directors
Certificate of incorporation, partnership deed, or registration certificate as applicable
GST registration certificate and the Shop and Establishment or factory licence
Address proof of the premises — rent agreement and a recent utility bill
Cancelled cheque of the establishment's bank account
Employee list with date of joining, date of birth, wages, Aadhaar, PAN and bank details
Digital signature of the authorised signatory, and specimen signature
Date on which the twentieth (or tenth) employee joined — this fixes the date of coverage
The registration process
Shram Suvidha account. A single unified account is created for the establishment on the Ministry of Labour portal.
Common registration form. EPF and ESI registration are applied for together, with establishment details, branch details, employment strength and the nature of business by NIC code.
DSC registration. The authorised signatory's Class 3 signature is registered and approved before returns can be filed.
Codes allotted. The EPF establishment code and the ESI employer code are issued, usually within a few working days.
Employee onboarding. UANs generated or linked and KYC seeded for PF; ESI insurance numbers generated and e-Pehchan cards issued. Nomination in Form 2 and declaration in Form 11 collected.
What follows every month
Registration is the easy part; the recurring obligation is where penalties accumulate.
PF ECR uploaded and challan paid by the 15th; interest at 12% per annum plus damages of up to 25% per annum apply on delay
ESI contribution paid by the 15th, with interest at 12% per annum on delay and the risk of the contribution being disallowed as a deduction under income tax if not paid by the due date
Exit dates marked for departing employees, and Form 10 and Form 5 particulars kept current
ESI half-yearly return periods April to September and October to March
Records maintained for inspection: wage register, attendance register, inspection book and the register of accidents for ESI
Getting the wage structure right matters as much as the filing. Splitting salary to suppress basic pay to reduce PF liability has been repeatedly struck down — allowances that are universally and ordinarily paid to all employees form part of basic wages for PF. We build the salary structure and run the monthly filing together as part of payroll outsourcing, and file the monthly and half-yearly returns under PF and ESI return filing.
Frequently asked questions
PF is not triggered until 20 employees. ESI applicability depends on the establishment category: the Act applies from 10 employees, but Tamil Nadu has notified 20 for shops and certain establishments. The correct answer depends on how your establishment is classified under the state notification, which we check against your Shop and Establishment registration before advising.
Yes. Voluntary coverage under Section 1(4) of the EPF Act is available with the consent of the employer and the majority of employees. It is worth considering if you are recruiting candidates who expect PF, or if you are close to the threshold and would rather not deal with a retrospective coverage date later.
Coverage relates back to the date the threshold was crossed. The authority can initiate an enquiry under Section 7A, determine dues for the entire past period, and levy interest under Section 7Q and damages under Section 14B. Voluntarily regularising before an inspection generally produces a better outcome than being assessed.
Statutory liability is capped at basic plus DA of 15,000 per month. Contributing on higher wages is permitted by joint option and many employers do so as a benefit. What is not permitted is artificially splitting wages into allowances to bring basic below the real figure.