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  • PF: Required for businesses with 20 or more employees

  • ESI: Required for businesses with 10 or more employees (earning ₹21,000 or less)

  • PF: 12% from employer + 12% from employee (on basic salary)

  • ESI: 3.25% from employer + 0.75% from employee (on gross salary)

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PF (Provident Fund) is a government-backed retirement savings scheme for employees. Both employer and employee contribute 12% of basic salary. It helps build a financial cushion for retirement and emergencies.

 ESI (Employee State Insurance) is a health insurance scheme for employees earning ₹21,000/month or less. It provides medical, sickness, maternity, and accident benefits. Employers contribute 3.25% and employees 0.75% of wages.

Overview of  PF & ESI

Provident Fund (PF):

PF is a government-managed retirement savings scheme under the Employees’ Provident Fund Organisation (EPFO). It ensures financial stability for employees after retirement or during emergencies.

Key Highlights:

  • Mandatory for businesses with 20 or more employees

  • Applies to employees earning up to ₹15,000/month (basic salary)

  • 12% contribution from both employer and employee

  • Includes pension benefits and partial withdrawal options

  • UAN (Universal Account Number) links PF accounts across jobs


 Employee State Insurance (ESI):

ESI is a social security scheme under the Employees’ State Insurance Corporation (ESIC) that provides medical, sickness, maternity, and accident coverage to employees and their families.

Key Highlights:

  • Mandatory for businesses with 10 or more employees

  • Applicable for employees earning ₹21,000/month or less

  • 3.25% employer contribution + 0.75% employee contribution

  • Benefits include full medical care, maternity leave, disability cover, and dependents’ benefits


Why PF & ESI Registration Matters:

  • Legal compliance under Indian Labour Laws

  • Protects employees' financial and health interests

  • Builds trust, improves retention, and avoids penalties

  • Enhances your company’s credibility and social responsibility

 Registration Process of PF & ESI

🔷 PF Registration (Under EPFO)

1️⃣ Visit EPFO Portal
Go to https://www.epfindia.gov.in

2️⃣ Register on the Employer Portal
Create an employer login ID on the Unified Shram Suvidha Portal (USSP).

3️⃣ Fill Employer Registration Form
Enter company details, contact info, PAN, etc.

4️⃣ Upload Required Documents

  • Company PAN

  • Certificate of Incorporation

  • Address proof

  • Employee details (name, salary, DOJ, ID)

  • Bank details

5️⃣ Digital Signature (DSC) Verification
Attach DSC of the authorized signatory for approval.

6️⃣ PF Establishment Code Allotted
Once approved, you’ll receive your PF Registration Number / Establishment Code.


🔷 ESI Registration (Under ESIC)

1️⃣ Visit ESIC Portal
Go to https://www.esic.in

2️⃣ Sign Up as Employer
Register under “Employer Login” on the ESIC portal.

3️⃣ Fill the Employer Registration Form (Form-1)
Provide company and employee details, nature of work, number of employees, wages, etc.

4️⃣ Upload Documents

  • PAN & GST of business

  • Registration certificate

  • Address proof

  • Bank details

  • Employee list

5️⃣ Verification & Submission
Submit the application with DSC.

6️⃣ Receive 17-Digit ESIC Number
You will be allotted a unique 17-digit Employer Code Number.


 Post-Registration Compliance:

  • File monthly PF & ESI returns

  • Deposit contributions before the 15th of each month

  • Maintain employee registers and wage records

  • Inform about employee additions or exits

Documents Required for PF & ESI Registration

1. Company/Business Documents

  • Certificate of Incorporation (Company/LLP) or
    Shop & Establishment License (for proprietorship/partnership)

  • GST Registration Certificate

  • PAN Card of the business entity


 2. Address Proof

  • Rent agreement/Ownership proof of premises

  • Latest electricity or utility bill


 3. Identity & Address Proof of Directors/Partners/Proprietor

  • PAN Card

  • Aadhaar Card

  • Passport-size photos

  • Mobile number & email ID


 4. Employee Details

  • List of all employees with their:

    • Full name

    • Date of joining

    • Salary details

    • Aadhaar and PAN

    • Bank account details (cancelled cheque or passbook copy)


 

Benefits of PF & ESI Registration

 1. Employee Welfare & Security
Ensures employees get benefits like retirement savings (PF) and medical coverage (ESI) — boosting loyalty and satisfaction.


 2. Legal Compliance
Helps businesses stay compliant with labour laws and avoid penalties under the EPF & ESIC Acts.


 3. Employer Branding
Registered companies are seen as credible and employee-friendly, attracting skilled talent.


 4. Financial & Medical Support
In case of illness, maternity, disability, or retirement, employees are financially supported through these schemes.

Eligibility for PF & ESI Registration

Provident Fund (PF) Eligibility

 Mandatory for businesses with 20 or more employees
Applies to employees earning up to ₹15,000/month (Basic + DA)
 Voluntary registration allowed for businesses with fewer than 20 employees
Both employer and employee contribute 12% of basic wages to PF


 Employee State Insurance (ESI) Eligibility

 Mandatory for businesses with 10 or more employees (in most states)
Applies to employees earning ₹21,000/month or less

 Employer contributes 3.25% and employee contributes 0.75% of wages
Provides medical, maternity, and disability benefits


 

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Frequently Asked Questions (FAQs)

 

Yes, PF is mandatory if you have 20 or more employees, and ESI is mandatory if you have 10 or more employees earning less than ₹21,000/month.

Employee: 12% of Basic + DA

  • Employer: 12% (split into PF + pension + admin charges)

Employee: 0.75% of wages

  • Employer: 3.25% of wages

 

Yes, it is voluntary. Businesses can choose to register and contribute for employee welfare.