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)
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.
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
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
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
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.
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.
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
Certificate of Incorporation (Company/LLP) or
Shop & Establishment License (for proprietorship/partnership)
GST Registration Certificate
PAN Card of the business entity
Rent agreement/Ownership proof of premises
Latest electricity or utility bill
PAN Card
Aadhaar Card
Passport-size photos
Mobile number & email ID
List of all employees with their:
Full name
Date of joining
Salary details
Aadhaar and PAN
Bank account details (cancelled cheque or passbook copy)
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.
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
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
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.
Employer: 12% (split into PF + pension + admin charges)
Employer: 3.25% of wages
Yes, it is voluntary. Businesses can choose to register and contribute for employee welfare.