PF & ESI Registration for Employers: Thresholds, Rates & Compliance (2026)

The moment your team crosses a headcount threshold, two social-security registrations become legally mandatory — EPF and ESI. Both carry monthly contribution and filing duties, and the penalties for late deposit are steep. Here's the employer's complete 2026 guide.

EPF (Provident Fund) — when it applies

EPF registration is mandatory for establishments employing 20 or more employees. Smaller employers can register voluntarily. It builds a retirement corpus for employees through monthly contributions.

• Contribution rate: 12% of basic + DA by the employee, matched by 12% from the employer.
• Wage ceiling: mandatory coverage applies up to a basic wage of ₹15,000/month; above that it's optional by mutual agreement.
• Employer split: part of the employer's 12% goes to the Pension Scheme (EPS).

ESI (Employees' State Insurance) — when it applies

ESI is mandatory for establishments with 10 or more employees (the threshold is higher in a few states) and covers employees earning up to ₹21,000/month (₹25,000 for employees with disabilities). It provides medical care and cash benefits for sickness, maternity and injury.

• Employee contribution: 0.75% of wages.
• Employer contribution: 3.25% of wages.

Monthly compliance duties

1. Deduct employee contributions from salary each month.
2. Deposit both employee and employer shares by the due date (generally the 15th of the following month).
3. File the monthly EPF ECR and ESI return online.
4. Maintain employee records, UANs and ESIC numbers.

Penalties for delay

• EPF: interest at 12% per annum plus damages up to 25% per annum for late deposit.
• ESI: interest at 12% per annum on delayed contributions, plus damages.
• Persistent default can attract prosecution of the employer.

Getting registered

Both registrations are online, linked to your entity's PAN and bank details, and usually issued within a few days. If you've just crossed the headcount threshold, register before your next salary run to avoid back-dated liability. Our compliance team handles EPF and ESI registration plus the monthly filings, and you can track every employer deadline on our compliance calendar.