ESI & PF registration & monthly compliance — 2026 update

Hiring employees is an exciting milestone for any business, but it also brings statutory responsibilities. Two of the most important labour law compliances in India are Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI).

Whether you’re a startup, private limited company, LLP, partnership firm, or MSME, understanding when registration becomes mandatory, contribution rates, due dates, and monthly compliance requirements is essential to avoid penalties and ensure employee welfare.

Let’s understand everything you need to know in 2026. 🚀

What is EPF?

The Employees’ Provident Fund (EPF) is a retirement savings scheme administered by the Employees’ Provident Fund Organisation (EPFO).

It helps employees build long-term retirement savings through monthly contributions made by both the employer and the employee.

Objectives of EPF

• Retirement savings
• Pension benefits
• Insurance benefits
• Financial security for employees

What is ESI?

The Employees’ State Insurance (ESI) scheme is administered by the Employees’ State Insurance Corporation (ESIC) and provides social security benefits to eligible employees.

It offers:

Medical care

Sickness benefits

Maternity benefits

Disablement benefits

‍👩‍👧 Dependants’ benefits

When is PF Registration Mandatory?

Generally, EPF registration becomes mandatory when an establishment employs:

20 or more employees

Certain establishments may be covered earlier under specific notifications or may opt for voluntary coverage.

When is ESI Registration Mandatory?

ESI generally applies to establishments covered under the ESI Act employing:

10 or more employees (subject to state-specific notifications)

and employees drawing wages up to the prescribed wage ceiling (currently ₹21,000 per month for most employees).

Documents Required for Registration

For EPF Registration

• PAN of the establishment
• Certificate of Incorporation / Registration
• GST Registration (if applicable)
• Address proof
• Bank account details
• Digital Signature Certificate (DSC)
• Details of directors/partners/proprietor
• Employee details

For ESI Registration

• PAN
• Certificate of Incorporation
• Business address proof
• Bank details
• Employee details
• Salary records
• Mobile number & email ID

EPF Registration Process

Step 1️⃣

Create an employer account on the EPFO portal.

Step 2️⃣

Submit establishment details.

Step 3️⃣

Upload required documents.

Step 4️⃣

Add employee details.

Step 5️⃣

Generate the Establishment Code Number.

Once approved, the employer can begin enrolling eligible employees.

ESI Registration Process

Step 1️⃣

Register the establishment on the ESIC portal.

Step 2️⃣

Provide business information.

Step 3️⃣

Upload required documents.

Step 4️⃣

Register eligible employees.

Step 5️⃣

Generate the Employer Code Number.

Employees can then be allotted insurance numbers for availing benefits.

EPF Contribution Rates

The standard contribution is generally:

Employee Contribution

12% of Basic Wages + Dearness Allowance

Employer Contribution

12%, split between:

• EPF
• Employees’ Pension Scheme (EPS), as applicable

ESI Contribution Rates

Current contribution rates are generally:

Employee Contribution

0.75% of wages

Employer Contribution

3.25% of wages

These contributions must be deposited within the prescribed due dates.

Monthly Compliance Requirements

Every month, employers should:

EPF

• Calculate PF contributions
• Generate Electronic Challan-cum-Return (ECR)
• Upload employee wage details
• Deposit contributions

ESI

• Calculate ESI contributions
• Upload employee contribution details
• Generate challan
• Deposit contributions

⏰ Monthly Due Dates

Compliance	Due Date
EPF Contribution	15th of the following month
ESI Contribution	15th of the following month

Late deposits may attract interest and damages.

Employee Details to Maintain

Employers should keep updated records of:

Employee Name

🆔 UAN (for EPF)

Insurance Number (for ESI)

Monthly wages

• Date of joining
• Date of exit

KYC documents

Proper records simplify audits and inspections.

Annual & Periodic Compliance

In addition to monthly payments, employers should:

• Update employee KYC
• Record new joiners and exits promptly
• Maintain wage and attendance registers
• Preserve payroll and contribution records

Timely updates reduce reconciliation issues.

‍💼 Benefits to Employees

EPF Benefits

Retirement corpus

Partial withdrawals in eligible cases

Pension benefits (subject to scheme rules)

Insurance benefits through the applicable linked insurance scheme

ESI Benefits

Cashless medical treatment

Sickness benefits

Maternity benefits

Disability benefits

‍👩‍👧 Family benefits in eligible cases

These schemes provide financial and social security to employees and their families.

Penalties for Non-Compliance

Failure to comply may result in:

• Interest on delayed payments
• Damages and penalties
• Recovery proceedings
• Prosecution in serious cases

Timely compliance is essential to avoid legal and financial consequences.

Example

Suppose:

ABC Private Limited

Employees: 24

The company is generally required to:

• Register under EPF
• Register under ESI (if applicable)
• Enrol eligible employees
• Deposit monthly contributions
• Maintain statutory payroll records

Best Practices for Employers

• Complete registrations as soon as coverage becomes applicable
• Generate payroll before filing returns
• Reconcile salary and contribution records monthly
• Update employee exits immediately
• Verify UAN and ESIC details
• Maintain digital copies of all challans and returns

Using payroll software or professional compliance support can significantly reduce errors.

EPF & ESI Compliance Checklist

• EPF Registration completed
• ESI Registration completed
• Employee onboarding completed
• UAN generated
• ESIC Insurance Numbers allotted
• Monthly payroll prepared
• Contributions calculated correctly
• Challans generated
• Contributions deposited by the due date
• Records maintained

🆕 2026 Update

The ESIC SPREE (Scheme to Promote Registration of Employers and Employees), introduced to encourage voluntary registration without retrospective liabilities for eligible establishments, was extended until 31 January 2026. Employers who did not avail the scheme are expected to follow normal registration and compliance requirements thereafter.

Final Thoughts

EPF and ESI compliance is more than a legal obligation—it demonstrates an employer’s commitment to employee welfare and responsible business practices.

By ensuring:

Timely registration

Accurate contribution calculations

On-time monthly deposits

Proper employee records

Ongoing statutory compliance

businesses can avoid penalties, build employee trust, and operate with confidence.

As your workforce grows, proactive compliance becomes a key part of sustainable business success.

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Stay compliant. Protect your employees. Build a stronger business. 👨‍💼