Published by: OurTaxPartner.com | Register for ESI & EPF with OurTaxPartner.com
Introduction
In India, compliance with employee welfare schemes such as the Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF) is not optional—it is a statutory obligation for qualifying businesses. But one of the most common questions employers ask is: Who needs to register?
In this detailed guide, we will explain the legal thresholds and criteria that determine whether your business is required to register for ESI and/or EPF. If you meet the conditions, OurTaxPartner.com is here to help you with fast, affordable, and expert-led registration and compliance services.
What is ESI?
The Employees’ State Insurance scheme is a government-mandated health and social security program that provides medical, maternity, and disability benefits to employees earning below a specific salary threshold. It is administered by the Employees’ State Insurance Corporation (ESIC).
ESI Legal Thresholds
- ESI registration is mandatory for establishments employing 10 or more employees.
- In Maharashtra and Chandigarh, the threshold is 20 employees.
- ESI is applicable only if any employee earns ₹21,000/month or less in gross salary.
- For employees with disabilities, the salary threshold is ₹25,000/month.
Industries Covered Under ESI
- Shops
- Hotels and restaurants (not having any manufacturing activity)
- Cinema halls
- Newspapers establishments
- Private educational institutions and medical institutions
- Factories using power and employing 10 or more persons
Still unsure about your eligibility? Click here to get a free eligibility consultation from OurTaxPartner.com.
What is EPF?
The Employees’ Provident Fund is a retirement benefit scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed by the Employees’ Provident Fund Organisation (EPFO) and is designed to provide long-term financial security to employees.
EPF Legal Thresholds
- EPF registration is mandatory for any establishment that employs 20 or more employees.
- It is applicable irrespective of salary limits (unlike ESI).
- Once registered, all employees must be enrolled—regardless of their salary.
Voluntary EPF Registration
- Businesses with fewer than 20 employees can also opt for voluntary registration.
- Such registration must be approved by the EPFO and once done, the employer must comply with all provisions of the Act.
EPF Applicability to Employee Types
- Permanent employees
- Temporary workers
- Contract labor (if working under supervision of employer)
- Apprentices not covered under the Apprentices Act
Comparison: ESI vs EPF Registration Criteria
| Criteria | ESI | EPF |
|---|---|---|
| Governing Authority | Employees’ State Insurance Corporation (ESIC) | Employees’ Provident Fund Organisation (EPFO) |
| Minimum Employees | 10 (20 in some states) | 20 |
| Salary Threshold | ₹21,000/month (₹25,000 for disabled) | None |
| Mandatory Contribution | Employer 3.25%, Employee 0.75% | Employer 12%, Employee 12% |
| Voluntary Option | No | Yes |
Who Must Register?
Your business must register if it meets any of the following criteria:
- Has 10 or more employees drawing salaries below ₹21,000 – ESI is mandatory.
- Has 20 or more employees (any salary) – EPF is mandatory.
- Has contract labor who work under your supervision – EPF & ESI applicable.
- Runs a factory with more than 10 employees and power usage – ESI mandatory.
Unsure about your eligibility? Consult OurTaxPartner.com today for a personalized review.
Documents Required for ESI & EPF Registration
- PAN card of the company
- Certificate of Incorporation / Business Registration
- GST Registration Certificate (if applicable)
- Bank account details and cancelled cheque
- Address proof of the establishment
- List of employees with salary, designation, and joining date
- Digital Signature Certificate (DSC) of the authorized signatory
Consequences of Non-Registration
- Penalties under Section 85 of ESI Act (up to ₹5,000 per default)
- Penalties under Section 14B and 7Q of EPF Act (damages + 12% annual interest)
- Ineligibility for government projects and public tenders
- Legal action and inspection raids by labor departments
How OurTaxPartner.com Can Help
- End-to-end ESI & EPF registration process
- Eligibility assessment for your establishment
- Assistance with document preparation and submission
- Monthly return filing and compliance monitoring
- Support with inspections, audits, and notices
Register your business with OurTaxPartner.com to stay legally compliant and worry-free.
Frequently Asked Questions (FAQs)
Can a business with 8 employees register for EPF?
Yes. Voluntary registration is allowed under EPF even if the employee count is below 20.
Is ESI applicable to interns or apprentices?
Interns and apprentices may be excluded if governed under the Apprentices Act. Otherwise, coverage may be required.
Do I need to register for both ESI and EPF?
If your business meets the criteria for both, then yes, separate registration is required for ESI and EPF as they are governed by separate laws and authorities.
What if my employee count fluctuates around the threshold?
Once registration is triggered (crossing threshold), it remains mandatory even if employee count later reduces.
Conclusion
Registering for ESI and EPF is not just about avoiding penalties—it’s about supporting your workforce with essential benefits while demonstrating your commitment to ethical business practices. If your organization meets the statutory thresholds, now is the time to register and comply.
For a hassle-free and expert-managed experience, contact OurTaxPartner.com and ensure full compliance with ESI and EPF laws in India.
Quick Link: Start Your ESI & EPF Registration Today
