When should employer register in EPF & ESI Act

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1

Is there a time or grace period as per rules when company needs to take EPF& ESI registration?

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As soon as the headcount touches 20 employees (including contract employees like security, housekeeping etc), the establishment has to register for PF. Once the PF registration is done, the establishment has to concurrently register for ESI even if all the employees are above the ESI limit of Rs 21000/- monthly gross. Monthly and half yearly NIL returns have to be filed for ESI.

If the number of employees below Rs 21000/- monthly gross touches 10, then the establishment has to start contributing for ESI.

These are social security laws and no “grace period” is allowed.

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Dear Mohan,

The threshold limit of employee strength for coverage of organization under ESI is 10 irrespective of whether the employee is coverable under ESI or not.

Eg.

If the employee strength 10 and all the employees’ gross is above Rs,21000/- still the organization is to be registered under ESI.

Hope this clarifies.

Regards,

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That is what I have said. When the establishment registers for PF, it will automatically require ESI registration.

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Hi Prabha

When registering for PF the same time you have to register with ESI also. Because once you register with PF automatically ESI dept will come to know but for PF even if you have one person and wants register also you can do so. For ESI those who are earning less than 21 K and no of empls 10 and for PF min 20 then compulsorily you have to register.