PF & ESIC Compliance

What PF and ESIC compliance involves

Provident Fund (EPF) and Employees’ State Insurance (ESIC) are India’s two core social-security schemes for employees. EPF, run by the EPFO, builds a retirement corpus; ESIC provides medical and cash benefits to lower-paid workers. Once you cross the employee thresholds, registration is mandatory and monthly contributions must be deposited and returns filed on time — late deposits attract interest and damages that can quickly exceed the contribution itself.

EPF applies to establishments with 20 or more employees; ESIC applies to establishments with 10 or more employees (in covered areas) for workers earning up to ₹21,000 a month. Many businesses also register voluntarily to offer benefits and to qualify for tenders and contracts that require PF/ESIC coverage.

Contribution rates at a glance

For EPF, the employee contributes 12% of basic wages plus DA and the employer contributes 12% (a portion of which goes to the Employees’ Pension Scheme). For ESIC, the employee contributes 0.75% and the employer 3.25% of gross wages. Getting the wage definition and the split right is where many in-house payrolls slip — and errors compound every month until corrected.

Who needs to register and file

• Establishments with 20+ employees (EPF) or 10+ employees (ESIC, in notified areas).
• Employers with staff earning up to ₹21,000/month who fall under ESIC coverage.
• Businesses bidding for contracts/tenders that mandate PF & ESIC registration.
• Growing startups approaching the threshold who want to register proactively.

Monthly process and due dates

• Share your monthly payroll — wages, new joiners and exits.
• We generate the EPF ECR and ESIC contribution statement and compute dues.
• You release the payment; we deposit and file the returns.
• Both EPF and ESIC contributions for a month are due by the 15th of the following month.

Penalties for delay

Late EPF deposits attract interest at 12% per annum under section 7Q plus damages under section 14B that scale with the length of delay (up to 25% per annum for long delays). ESIC late payment attracts interest at 12% per annum. Beyond the money, default can lead to prosecution of the employer and disqualify you from tenders. Because dues recur monthly, even a habitual two-day delay becomes an expensive, audit-flagged pattern. We make sure every month is filed on time.

Why TCC for PF & ESIC

We handle registration, monthly ECR and ESIC filings, new-joiner and exit updates, UAN and KYC management, and inspection support — getting the wage base and splits right every month so you avoid the interest-and-damages trap. Fixed monthly fee, WhatsApp-first.