Published by: OurTaxPartner.com | India-Wide ESI & EPF Compliance Services
Introduction
The Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF) schemes are two cornerstone social security programs administered by the Indian government. While both are central legislations, their applicability may vary slightly across states due to local implementation rules, thresholds, and coverage timelines.
In this detailed blog, we explore the state-wise applicability of ESI and EPF in India, including employee count thresholds, notified areas, and unique conditions for specific regions. Whether you’re starting a new branch or expanding your business across India, this guide ensures you stay compliant. Need professional assistance with registration or filings? OurTaxPartner.com supports businesses across all Indian states and UTs.
Basic Applicability Criteria
| Scheme | Employee Threshold | Wage Limit | Applicability |
|---|---|---|---|
| EPF | 20 or more employees | ₹15,000/month (mandatory coverage below this) | Pan-India uniform applicability |
| ESI | 10 or more employees (20 in a few states) | ₹21,000/month gross salary (₹25,000 for disabled) | Only in ESI Notified Areas |
State-Wise ESI Applicability Overview
ESI is only applicable in areas notified by the Employees’ State Insurance Corporation (ESIC). Coverage varies depending on the state, district, and establishment type. Below is a summary of ESI applicability by state:
1. Maharashtra & Chandigarh
- Employee Threshold: 20 employees (not 10)
- Commonly causes confusion among employers new to these regions
2. Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
- Employee Threshold: 10 employees
- Full ESI coverage in urban and semi-urban areas
- Widely implemented with ESIC hospitals in major cities
3. Kerala
- Extensive ESI coverage in all districts
- All commercial establishments with 10 or more employees are liable
4. West Bengal, Odisha, Jharkhand
- ESI extended to industrial belts, municipalities, and notified towns
- Check specific PIN code eligibility using ESIC’s coverage tool
5. Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan
- Gradual expansion of ESI coverage over recent years
- ESI facilities mostly in tier-1 and tier-2 cities
6. Delhi, Gujarat, Haryana, Punjab
- Extensive ESI network with robust inspection and audit frameworks
- Major industrial hubs are fully covered
7. North-Eastern States
- ESI is partially implemented in Assam, Tripura, and Meghalaya
- Limited coverage; employers must check local notification status
8. Union Territories (e.g., Puducherry, Delhi, Chandigarh)
- ESI applies in notified commercial zones
- Chandigarh follows 20-employee threshold
State-Wise EPF Applicability
EPF rules are uniform across India. Regardless of the state:
- EPF is mandatory if an establishment employs 20 or more workers
- All employees earning ≤ ₹15,000/month must be compulsorily covered
- EPFO regional offices exist in every major state for employer registration
What Employers Must Do State-Wise
- ✅ Check if your business location falls within an ESI notified area
- ✅ Determine if local labor inspectors follow 10-employee or 20-employee threshold
- ✅ Confirm the availability of ESIC hospitals/dispensaries for eligible employees
- ✅ Maintain UAN (for EPF) and IP (for ESI) numbers across all state branches
- ✅ Ensure ECR and ESIC returns are filed separately for each registered location
Documents Needed for State-Wise ESI & EPF Registration
- Company PAN & Incorporation Certificate
- Address proof of each establishment/branch
- Employee salary, joining date, and ID proofs
- List of directors or partners
- Digital Signature Certificate (DSC) for signing returns
Important Notes on Multi-State Businesses
- 🟠 EPF coverage applies centrally—same code can be used for branches.
- 🟢 ESI requires separate sub-codes for each state/branch covered under notified area.
- 📌 Employers must track region-wise contribution deadlines and inspection authorities.
How OurTaxPartner.com Helps You Stay Compliant Across States
- ✔ ESI/EPF applicability assessment by location
- ✔ Branch-wise registration and sub-code allotment
- ✔ Centralized UAN/IP management for distributed teams
- ✔ Monthly ECR and ESIC return filing for multiple locations
- ✔ Employee KYC linking and support during inspections
- ✔ Legal response and audit representation across all states
Click here to get state-wise registration and EPF/ESI compliance support with OurTaxPartner.com
Frequently Asked Questions (FAQs)
Do EPF and ESI thresholds differ from state to state?
EPF thresholds are uniform nationwide. ESI thresholds differ—most states follow 10 employees, but some like Maharashtra and Chandigarh require 20.
Is ESI applicable to rural areas?
Only if the rural area is a part of a notified ESIC region. Most ESI coverage is concentrated in urban and semi-urban zones.
Can I use one EPF registration for multiple states?
Yes. A single PF code can cover multiple locations, but separate branch codes are recommended for ease of compliance.
Do I need separate ESI registrations in different states?
Yes, you must obtain a sub-code for each state or branch falling in a notified ESI area.
Conclusion
While EPF implementation is uniform across India, ESI applicability depends heavily on state-specific notifications and thresholds. Employers with pan-India operations must stay vigilant about local rules to ensure smooth compliance. From hiring to expansion, keeping ESI/EPF registration aligned with regional laws is critical to avoid penalties.
Want expert support across all Indian states? Let OurTaxPartner.com manage your compliance from registration to monthly returns and audits.
Quick Link: Get State-Wise ESI & EPF Registration Help Now
