🇮🇳 PF & ESI Registration in India – Detailed Guide

🧾 1. What is PF & ESI?

• Provident Fund (PF) – A retirement benefit scheme for salaried employees regulated by the Employees' Provident Fund Organisation (EPFO).

• Employees’ State Insurance (ESI) – A self-financing social security scheme providing medical and disability benefits, managed by the ESIC (Employees' State Insurance Corporation).

· ✅ 2. Eligibility Criteria

· Scheme

Applicability

Threshold

PF

Mandatory for establishments employing 20 or more employees

All employees earning up to ₹15,000/month (contribution is still applicable for higher salaries unless opted out)

ESI

Mandatory for establishments employing 10 or more employees (in most states)

Applicable to employees earning up to ₹21,000/month (₹25,000 for persons with disability)

📝 Voluntary registration is allowed even below the thresholds.

📋 3. PF Registration Requirements

 Registered business entity (Private Ltd, LLP, etc.)

 Valid PAN and TAN

 Minimum 20 employees

 Salary details of all employees

 Bank account of the entity

 Digital signature of authorized signatory

 Details of directors/partners

4. ESI Registration Requirements

 Registered company/firm

 Minimum 10 employees

 Employee salary details

 PAN card of business

 Address proof of business

 Bank details

 Details of employees (Aadhaar, salary, designation, date of joining)

📂 5. Required Documents for Both

Document

PF

ESI

PAN of the company

✅

✅

Certificate of incorporation

✅

✅

Address proof

✅

✅

Employee details (KYC, salaries)

✅

✅

Bank account proof

✅

✅

DSC of employer

✅

Optional

Registration under Shops & Establishment Act

✅

✅

💸 6. Contribution Rates (as of 2024)

PF Contribution

Party

Rate

Employer

12% of Basic + DA

Employee

12% of Basic + DA

ESI Contribution

Party

Rate

Employer

3.25% of gross wages

Employee

0.75% of gross wages

🎯 7. Benefits of PF Registration

 Retirement savings and pension benefits

 Life insurance under EDLI (Employee Deposit Linked Insurance) scheme

 Loan/advance facility for marriage, education, housing, etc.

 UAN (Universal Account Number) for portability across jobs

 Employer branding and trust building

🎯 8. Benefits of ESI Registration

 Full medical care for employee and dependents

 Maternity benefits

 Sickness benefit (70% of wages for up to 91 days/year)

 Disablement and dependent benefits

 Funeral expenses

 Skill improvement training (RGSKY Scheme)

⚙️ 9. Compliance & Filing

Compliance

PF

ESI

Monthly Contribution

15th of every month

15th of every month

Annual Returns

Due by 30th April (Form 3A, 6A)

ESIC Form 5

Inspection

Random or complaint-based

Random or complaint-based

🛠️ Penalties for Non-Compliance

Offense

PF Penalty

ESI Penalty

Delay in payment

12% interest + up to 25% damages

Up to 12% interest + penalty

Non-registration

Prosecution + fine

Fine up to ₹25,000 + prosecution