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ESIC & EPFO Compliance

ESIC (Employee State Insurance Corporation) and EPFO (Employees' Provident Fund Organisation) are mandatory social security schemes for employees in India. Employers covered under these schemes must register, deduct employee contributions, make matching employer contributions, and file monthly returns — failing which heavy penalties apply.

4,000+
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100%
On-Time Deposits
4.8 ★
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Penalty Notices
Service Overview

Protect Your Employees. Protect Your Business.

EPFO and ESIC are not just compliance boxes — they are social security nets that protect your employees during illness, accidents, maternity, and retirement. As an employer, timely and accurate contributions are a legal obligation and a mark of ethical business practice. Both schemes have strict monthly timelines. PF contributions are due by the 15th of each month; ESI contributions are due by the 21st. Missing these deadlines attracts interest at 12% per annum and damages at 25% of the arrears — along with potential criminal action for persistent defaulters.

Critical: PF and ESI contributions must be deposited by the 15th of every month. Late deposits attract damages at up to 25% per annum on the arrears plus 12% simple interest — and persistent defaults can lead to prosecution and attachment of business assets.

Monthly PF Contributions

12% + 12% by the 15th

Employers must contribute 12% of each employee's basic salary + DA to the EPF, matching the employee's 12% contribution. The employer's 12% splits between EPF (3.67%) and EPS (8.33%). Total must be deposited by the 15th of each month.

Monthly ESI Contributions

3.25% + 0.75% by the 21st

The employer contributes 3.25% and the employee contributes 0.75% of gross wages. ESI must be deposited by the 21st of each month. Employees earning above ₹21,000/month are exempt from ESI.

Monthly ESIC Return (Form 6)

Monthly wages and contributions

Employers must file monthly returns on the ESIC portal showing employee wages and contributions challan details. Half-yearly returns (Form 5) are also required with detailed employee-wise contribution data.

EPF Return Filing (ECR)

Electronic Challan cum Return

The Electronic Challan cum Return (ECR) must be filed on the EPFO's Unified Portal every month — detailing member-wise UAN, wages, and contribution amounts.

Eligibility Criteria

Who Must Comply with ESIC & EPFO?

Coverage thresholds define whether a business must register under EPFO and ESIC.

1

EPFO: 20+ Employees

Any establishment with 20 or more employees must mandatorily register with EPFO. Establishments with fewer than 20 employees may voluntarily register. Once registered, all employees must be enrolled.

2

ESIC: 10+ Employees

Establishments in factories and shops employing 10 or more employees (in most states) must register under ESIC. Employees earning up to ₹21,000/month gross are covered.

3

Newly Covered Employees

When an establishment crosses the employee threshold, it must register within 30 days and enroll all existing employees. New employees must be enrolled at the time of joining.

4

Contractors & Principal Employers

Principal employers are responsible for ensuring their contractors' employees are covered under PF and ESI. If the contractor defaults, the principal employer bears liability.

Key Benefits

Benefits of Proper ESIC & EPFO Compliance

Compliance protects both employees and the employer — financially and legally.

01

Employee Medical Coverage

ESIC-covered employees and their families receive free medical treatment, hospitalization, maternity benefits, and sickness cash benefits — boosting employee loyalty and reducing turnover.

02

Employee Retirement Security

EPF ensures employees build a retirement corpus. EPS (Employee Pension Scheme) provides pension after 10 years of service. These are powerful retention tools for attracting quality talent.

03

Avoid Heavy Penalties

PF default attracts 12% p.a. interest plus 25% damages. ESI default attracts 12% interest. Persistent defaulters face criminal prosecution with imprisonment up to 1 year.

04

Government Tender Eligibility

Government contracts require valid PF and ESI registration and compliance certificates. Non-compliant businesses are disqualified from government procurement.

05

Labour Audit Protection

Businesses with complete PF and ESI records sail through labour department inspections. Missing records attract fines for each non-compliant period.

06

Employee Loyalty

Employees value employers who contribute to their PF and ESI. Compliance reduces absenteeism, attracts better candidates, and creates a positive workplace reputation.

Step-by-Step Process

Monthly ESIC & EPFO Compliance Cycle

Our payroll and compliance team manages the complete monthly cycle for your establishment.

Your journey Step 1 of 6

Scroll through the steps — or skip the queue and let our experts handle every one of them for you.

Get Expert Help
1
Step 1 of 6

Calculate Monthly Contributions

Calculate PF (12% employee + 12% employer) and ESI (0.75% employee + 3.25% employer) on each employee's applicable wages for the month.

2
Step 2 of 6

Generate EPFO ECR

Generate the Electronic Challan cum Return (ECR) on the EPFO Unified Portal with member-wise UAN, wages, and contributions. Verify for new joiners and exits.

3
Step 3 of 6

Deposit PF by 15th

Deposit the total PF contribution (employee + employer) through the ECR challan by the 15th of the following month to avoid interest and damages.

4
Step 4 of 6

Generate ESI Challan

Create the ESI contribution challan on the ESIC portal with employee-wise gross wages and contribution amounts.

5
Step 5 of 6

Deposit ESI by 21st

Deposit total ESI contributions (employee + employer) by the 21st of the following month. File monthly return on the ESIC portal.

6
Step 6 of 6

Half-Yearly ESIC Return

File Form 5 (half-yearly return) with ESIC by May 12 (for Oct–Mar period) and November 12 (for Apr–Sep period) — showing employee-wise contribution details.

Document Checklist

Documents for ESIC & EPFO Registration

These documents are needed for initial registration. Monthly contributions only require payroll data.

Employer Registration Documents

Certificate of Incorporation / PAN

Proof of business registration and PAN of the employer entity.

Address Proof of Establishment

Rent agreement and utility bill for the principal place of business.

Bank Account Details

Current account details of the company for challan payments.

Every employee covered under PF must have a UAN (Universal Account Number). UANs must be verified with Aadhaar for members to access their PF balance and for employers to file without errors.

Post Registration

After Registration — Ongoing Obligations

ESIC and EPFO compliance is a month-on-month commitment. Our team handles it so you never default.

On joining

Enroll New Employees on Joining

Register every new employee with EPFO (generate/link UAN) and ESIC (generate IP number) on their date of joining. Delay in enrollment attracts retrospective contributions and penalties.

Each new hire

Annual PF Declaration (Form 11)

Collect Form 11 (new employee PF declaration) from every new joiner to confirm prior PF membership or new enrollment. This determines whether previous PF accounts need to be linked.

After registration

Provide UAN & ESIC Cards

Activate UAN for each employee and help them access their EPFO passbook. Issue ESIC Pehchan Card to all covered employees — they need this for free medical treatment at ESIC dispensaries.

Why Finace India?

Your Trusted ESIC & EPFO Compliance Partner

PF and ESI contributions are due by the 15th of every month — miss it and damages can run up to 25% per annum on the arrears. We file and deposit on time, every single month.

Monthly Deposit Discipline

Contributions calculated, challans generated, and deposits completed before the 15th of every month.

Coverage Threshold Tracking

We monitor employee headcount against the EPFO 20+ and ESIC 10+ thresholds so registration is never missed.

Penalty & Prosecution Shield

Consistent, on-time filings that keep your business well clear of damages, interest, and prosecution risk.

Tender & Audit Ready

Compliance records maintained to the standard required for government tenders and labour audits.

4,000+

Employers Managed

100%

On-Time Deposits

4.8 ★

Client Rating

0

Penalty Notices

4.9 / 5from 2,400+ verified reviews
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FAQ

Frequently Asked Questions

The employee contributes 12% of basic salary + DA to EPF. The employer also contributes 12%, split between EPF (3.67%) and EPS (8.33%). Additionally, the employer contributes 0.5% to EDLI (Employee Deposit-Linked Insurance) and administrative charges.
EPFO registration is mandatory for establishments with 20 or more employees. Once registered, the employer must cover all employees from day one of joining, regardless of their salary level.
Interest at 12% per annum applies on delayed deposits. Additionally, damages ranging from 5% to 25% of the arrears are levied depending on the delay period. Persistent default can result in imprisonment up to 3 years.
Employees earning gross wages up to ₹21,000 per month are covered under ESIC. Employees earning above ₹21,000 are exempt and need not be enrolled or have contributions deducted.
Yes. Employees can make partial withdrawals for specific purposes — home purchase, medical treatment, education, marriage, or after 2 months of unemployment. Full withdrawal is allowed after 2 months of unemployment with employer confirmation.

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