Provident fund (PF)
PF registration depends on the number of employees and on the nature of the establishment. Contributions are made by both employer and employee on the wage covered by the scheme. Employers file a monthly return and pay the contributions through the portal.
Employees’ State Insurance (ESI)
ESI applies to establishments of a certain size, covering employees whose wages are below the stated limit. Both employer and employee contribute, and the scheme provides medical and related benefits.
The thresholds change
The number of employees and the wage limits that bring you under each scheme are set by the government and can be revised. We check the current position when you hire.
A monthly routine
- Confirm the month’s attendance and salary.
- Calculate PF and ESI for each eligible employee.
- Pay the contributions before the due date.
- File the monthly returns.
- Keep the challans and registers for inspection.
Quick answers
Can an employee opt out of PF?
Not in general. There are limited exceptions, and the rules for higher wages differ. We confirm how they apply.
What if I register late?
You may owe contributions from the date they became due, with interest. It is better to register as soon as you are covered.
This article is general information, not advice for your situation. Rules, limits and due dates change, so we confirm the current position before you act on it.