PF and ESI Registration for Small Businesses in India (2026): When, How and Documents

Your business has grown to 10, 15, 20 employees — and someone has told you that you now need "PF and ESI registration". It's one of the most common compliance questions small business owners ask, and one of the most commonly delayed. Delays are expensive: when an inspector finds that you should have registered earlier, contributions can be demanded from the date you became liable, with interest and damages on top.

This guide explains, in plain language, when PF and ESI apply, how to register for each, the documents you need, what happens every month after registration, the common mistakes, and how to keep monthly compliance simple.

General guidance as of 30 September 2026, not legal advice. Registration processes and portals change — follow the current instructions on the EPFO and ESIC websites, or ask your CA.

The short answer

• PF (EPF) applies to establishments with 20 or more employees. Smaller establishments can register voluntarily.
• ESI applies to establishments with 10 or more employees in areas where ESI is implemented, and covers employees earning up to ₹21,000 a month (₹25,000 for employees with disabilities).
• Register online — PF through EPFO's employer registration, ESI through the ESIC employer portal. The labour codes are moving registrations towards a unified process; check the current route.
• After registration, contributions are due by the 15th of the following month, with a monthly return (ECR for PF, the monthly contribution return for ESI).
• Register as soon as you cross the threshold. Liability starts then, whether or not you've registered.

When PF applies

Question	Answer
Threshold	20 or more employees (counting all employees, including contract workers in many cases)
Once covered	Coverage continues even if headcount later falls below 20
Below 20	Voluntary registration is possible
Who contributes	Employees earning up to the wage ceiling must be members; higher earners can be included
Wage ceiling	₹15,000 a month until 16 September 2026; ₹25,000 from 17 September 2026
Contribution	12% employee + 12% employer (employer share split between EPF and EPS), plus EDLI and admin charges

When ESI applies

Question	Answer
Threshold	10 or more employees, in areas where ESI is implemented
Who's covered	Employees earning up to ₹21,000 a month (₹25,000 for employees with disabilities)
Contribution	0.75% employee + 3.25% employer, on gross wages
Low earners	Employees earning up to ₹176 a day don't pay the employee share; the employer still pays
Contribution periods	April–September and October–March; coverage is fixed for the period

How to register for PF: step by step

1. Check that you're liable — 20 or more employees, or voluntary coverage.
2. Prepare your documents (see the list below), including a digital signature (DSC) of the employer or authorised signatory.
3. Register on the EPFO employer registration portal (or the current unified portal) with the establishment's details: PAN, address, type of business, date of setting up, number of employees, and the owners, partners or directors.
4. Upload documents and sign with the DSC.
5. Receive your establishment code (PF code).
6. Register employees — generate UANs for new members or link existing UANs, and complete their KYC (Aadhaar, PAN, bank).
7. Start monthly contributions from the month you became liable.

How to register for ESI: step by step

1. Check that you're liable — 10 or more employees in an ESI-implemented area.
2. Prepare your documents.
3. Sign up on the ESIC portal as an employer and complete the registration form with the establishment's details.
4. Pay the first advance contribution if the portal asks for it.
5. Receive your 17-digit employer code.
6. Register employees — each gets an insurance number (IP number) and an e-Pehchan card; add family details for medical benefits.
7. Start monthly contributions from the date of coverage.

Documents you'll typically need

Document	PF	ESI
PAN of the business	✓	✓
Proof of establishment (incorporation certificate, partnership deed, shop licence, GST registration)	✓	✓
Address proof of the business	✓	✓
Bank details (cancelled cheque)	✓	✓
Details and ID of owners, partners or directors	✓	✓
Digital signature (DSC)	✓	Sometimes
List of employees with salaries and joining dates	✓	✓
Employees' Aadhaar, PAN and bank details	✓	✓

Exact requirements change — follow the checklist on the portal.

What happens every month after registration

Task	PF	ESI
Calculate contributions	12% + 12% on PF wages (basic + DA), within your ceiling policy	0.75% + 3.25% on gross wages for covered employees
Deduct employee share	On the payslip	On the payslip
File the return	ECR on the EPFO portal	Monthly contribution on the ESIC portal
Pay	Challan by the 15th of the next month	Challan by the 15th of the next month
New joiners	Link or create UAN	Register and get IP number
Leavers	Mark date of exit	Record the last working day

Late payment is expensive. For PF, interest under section 7Q (12% a year) and damages under section 14B apply. ESI has its own interest and damages.

A worked example: crossing 20 employees

A Coimbatore pump manufacturer had 18 employees in March and hired 3 in April, taking it to 21.

• ESI: it already had more than 10 employees, so it should have been registered with ESI already.
• PF: it became liable in April, when it crossed 20.
• Action: register with EPFO in April, generate UANs for everyone, and deposit April's contributions by 15 May.

Say one worker earns a basic of ₹14,000 and a gross of ₹19,000:

• PF: employee ₹1,680 (12% of ₹14,000); employer ₹1,680 (EPS ₹1,166, EPF ₹514), plus EDLI and admin charges.
• ESI: employee ₹143 (0.75% of ₹19,000, rounded up); employer ₹618 (3.25%, rounded up).

Common mistakes

1. Waiting until an inspection to register.
2. Excluding contract or trainee workers from the headcount without checking the rules.
3. PF on a made-up number instead of actual basic + DA earned.
4. Re-checking ESI eligibility every month instead of per contribution period.
5. Not marking exits, which blocks employees' PF transfers.
6. Paying on the 15th and hitting portal problems — pay a few days early.
7. No payslips showing the deductions.

How software makes monthly compliance simple

Registration is a one-time job. The monthly work — calculation, deduction, returns, payment tracking — is where software helps most.

PeopleVio's EPFO and ESIC modules:

• Calculate PF (EPF, EPS, EDLI, VPF) and ESI inside payroll, with the correct wage ceiling by date and ESI contribution periods.
• Show deductions and employer contributions on payslips.
• Generate the ECR file (and arrear ECR) and the ESIC monthly return .xls.
• Validate UANs and IP numbers before generating files.
• Track challans and payments, and send reminders before the 15th.
• Bulk-import UANs, PF member IDs and ESIC IP numbers from Excel.

What it doesn't do: register your establishment, generate UANs or IP numbers, or upload files and pay on the portals — you or your CA do that.

Active employees	Monthly billing	Yearly billing (per month)
20	₹1,180	₹980
50	₹2,450	₹2,050
100	₹4,900	₹4,100

Prices exclude GST; PF, ESI, payroll and attendance included. See the pricing page.

Frequently asked questions

Is PF registration mandatory for 10 employees? No. PF is mandatory at 20 employees. Smaller establishments can register voluntarily. ESI, however, usually applies from 10 employees.

What is the salary limit for ESI in 2026? ₹21,000 a month in gross wages (₹25,000 for employees with disabilities).

What is the PF wage ceiling in 2026? ₹15,000 until 16 September 2026, and ₹25,000 from 17 September 2026.

What happens if I register late? Contributions can be demanded from the date you became liable, with interest and damages. Register as soon as you cross the threshold.

Can my CA register PF and ESI for me? Yes. Many businesses have their CA or a consultant handle registration.

Does PeopleVio register my company for PF and ESI? No. PeopleVio handles the monthly work after registration: calculation, payslips, return files, payment tracking and reminders.

The bottom line

PF and ESI registration is a one-time step with a long tail of monthly obligations. Register as soon as you cross the threshold, then make sure every month's calculation, return and payment happens correctly and before the 15th.

See PeopleVio's pricing or book a demo to run PF and ESI inside payroll.

Related reading: How to file PF ECR online · ESIC wage ceiling 2026 · PF and ESI return filing software · HRMS for Tier 2 and Tier 3 cities