What the monthly cycle involves
- Computing PF and ESI on each employee's wages as defined under the Code on Social Security, 2020.
- Generating and filing the ECR and paying PF.
- Paying ESI contributions and updating employee records.
- Registering new joiners and recording exits.
- Handling employee queries on transfers and withdrawals.
What we need
- Monthly payroll with wage components.
- New joiner and exit details.
- Employee KYC — Aadhaar, PAN, bank.
- EPFO and ESIC login access.
How we handle it
Compute contributions
From payroll, applying the Code's single definition of wages.
File and pay
ECR and ESI by the 15th.
Update records
Joiners and exits every month.
Respond to notices
EPFO and ESIC queries answered with records.
Who is covered and at what rates
| Point | Provident Fund (EPF) | ESI |
|---|---|---|
| Coverage | Establishments with 20 or more employees (voluntary below) | Establishments with 10 or more employees (other than seasonal ones), and any establishment in a notified hazardous occupation |
| Wage ceiling | Mandatory for employees earning up to ₹25,000 a month (₹15,000 before 17 September 2026); optional above | Employees earning up to ₹21,000 a month |
| Employee share | 12% of PF wages | 0.75% of wages |
| Employer share | 12% of PF wages, of which 8.33% (on up to ₹25,000) goes to the pension scheme | 3.25% of wages |
| Due date | 15th of the following month | 15th of the following month |
Rates and ceilings are revised from time to time by notification; we apply the current ones each month.
Practical notes from our engagements
- Allowances excluded from PF wages. Splitting salary into allowances to reduce PF can be challenged. Check the wage definition.
- Exit dates not updated. Employees can't withdraw or transfer until the exit is marked.
How we handle PF and ESI
We run the monthly PF and ESI cycle with payroll, keep employee records current and answer EPFO and ESIC notices.
Related services
Frequently asked questions
When are PF and ESI due?
By the 15th of the following month.
What is an ECR?
The Electronic Challan cum Return filed with EPFO each month with PF contributions.
What happens if PF is paid late?
Interest and damages apply under the Code on Social Security, 2020, which replaced the EPF Act from 21 November 2025.
Are ESI returns filed monthly?
Contributions are paid monthly through the ESIC portal.
Do you handle EPFO notices?
Yes, as part of our payroll and compliance work.
What is the ESI wage limit?
Employees earning up to ₹21,000 a month are covered by ESI.
What are the PF contribution rates?
12% of PF wages from the employee and 12% from the employer, with 8.33% of the employer's share (on wages up to ₹25,000) going to the Employees' Pension Scheme.