Business Registrations
PF and ESI Registration Guide for Employers
PF and ESI are the two big employer registrations — with different thresholds, bodies and benefits. Here is when each kicks in, what you contribute, and the monthly compliance they bring.
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As your team grows, two statutory registrations appear: PF and ESI. They are different schemes with different triggers — and missing them is costly. Here is the employer's guide.
Quick answer
PF (EPF) is a retirement-savings scheme under the EPFO, generally mandatory at 20+ employees. ESI is a medical/insurance scheme under the ESIC, generally mandatory at 10+ employees (20+ in some states) for staff within a wage ceiling. Both involve employer + employee monthly contributions and monthly filings.
PF (EPF) in brief
- Trigger: generally 20 or more employees (voluntary below)
- Body: Employees' Provident Fund Organisation (EPFO)
- Contribution: a percentage of wages by both employer and employee
- Identifiers: establishment code + a UAN for each employee
- Monthly: file the ECR (Electronic Challan-cum-Return) and deposit by the due date
ESI in brief
- Trigger: generally 10 or more employees (20+ in some states), for employees up to the wage ceiling
- Body: Employees' State Insurance Corporation (ESIC)
- Benefit: medical care plus sickness, maternity, disability and dependants' benefits
- Contribution: a small percentage of wages by both employer and employee
- Monthly: file and deposit contributions by the due date
How they differ
| PF (EPF) | ESI | |
|---|---|---|
| Purpose | Retirement savings | Medical & cash benefits |
| Threshold | Generally 20+ | Generally 10+ |
| Wage ceiling | Contribution rules | Covers staff up to the ceiling |
| Body | EPFO | ESIC |
The cost of getting it wrong
Both schemes levy interest and damages on late or missed contributions, plus recovery action. Registration is required once you cross the threshold — not optional.
Common mistakes
- Not registering on crossing the threshold
- Late monthly deposits (interest + damages)
- Missing ESI-eligible employees within the wage ceiling
- Not generating UAN for new PF joiners
Register both where applicable, run the monthly filings on time, and your payroll compliance stays clean.
Ready to act?
Get PF & ESI compliance running
We register your establishment with the EPFO and ESIC and set up the monthly filings — clean payroll compliance from day one.
Frequently asked questions
When is PF registration mandatory?
Generally once an establishment employs 20 or more persons; smaller establishments can register voluntarily.
When is ESI registration mandatory?
Generally at 10 or more employees (20+ in some states), for employees earning up to the prescribed wage ceiling.
What is the difference between PF and ESI?
PF (EPFO) is a retirement-savings scheme; ESI (ESIC) provides medical and cash benefits. They have different thresholds, bodies and contributions.
Who contributes?
For both, employer and employee contribute a percentage of wages each month, with the employer depositing the contributions by the due date.
What are the monthly filings?
PF requires the monthly ECR (Electronic Challan-cum-Return); ESI requires monthly contribution filing. Both are due by their deadlines.
What is a UAN?
A Universal Account Number — a portable PF number for each employee that links their PF across employers.
What if contributions are late?
Both PF and ESI levy interest and damages on late or missed contributions, plus recovery action, so timely monthly filing matters.
Related MFA services
If you want this handled rather than done yourself, these are the matching services.
Written by
MyFinancialAdvisory Editorial
Editorial guidance prepared for business owners and reviewed before production publication.
Reviewed by MyFinancialAdvisory Compliance Team
Written against official sources, with the governing rule named wherever a figure or deadline is given. General guidance — not advice on your specific case.
Ready to act?
Get PF & ESI compliance running
We register your establishment with the EPFO and ESIC and set up the monthly filings — clean payroll compliance from day one.
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