Indian EPF (Employees' Provident Fund), ESI (Employees' State Insurance), or employer social security obligations.
Accountant-authored. Written and published by Mayur Deokar, an accountant approved on OpenAccountants. Their licence number (615638) is published on their profile, so you can check it against the register yourself. No second accountant has attested to this version yet. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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Employer total
12% of Basic + DAEPF Act 1952
EPF account
3.67%EPF Act
EPS (pension)
8.33% (capped at ₹15,000/month = max ₹1,250/mo)EPF Act
Employee contribution
12% of Basic + DAEPF Act 1952
EPF Admin
0.50% of total EPF wages (min ₹500/month if >20 employees)EPFO notification
EDLI (life insurance)
0.50% of Basic+DA (capped at ₹15,000) = max ₹75/moEPFO notification
EDLI Admin
Nil (removed 01-04-2017)EPFO notification
Employer ESI
3.25% of gross wagesESI Act 1948
Employee ESI
0.75% of gross wagesESI Act 1948
Total ESI
4%ESI Act
ECR (EPF monthly)
15th of following monthEPFO
ESI monthly
15th of following monthESIC
Employer total EPF contribution
12% of Basic + DAEPF Act 1952
EPF account split (employer)
3.67%EPF Act
EPS (pension)
8.33% (capped at ₹15,000/month = max ₹1,250/mo)EPF Act
Employee EPF contribution
12% of Basic + DAEPF Act 1952
PF wage ceiling
₹15,000/month (statutory; many contribute on actual)EPF Act
EPF applicability
Establishments with 20+ personsEPF Act
EPF Admin
0.50% of total EPF wages (min ₹500/month if >20 employees)EPFO notification
EDLI (life insurance)
0.50% of Basic+DA (capped at ₹15,000) = max ₹75/moEPFO notification
EDLI Admin
Nil (removed 01-04-2017)EPFO notification
EDLI death benefit
Up to ₹7,00,000EPFO
Employer ESI contribution
3.25% of gross wagesESI Act 1948
Employee ESI
0.75% of gross wagesESI Act 1948
Total ESI
4%ESI Act
ESI wage ceiling
₹21,000/month (₹25,000 for disability)ESI Act
ESI applicability
Establishments with 10+ persons (notified areas)ESI Act
ECR (EPF monthly) filing deadline
15th of following monthEPFO
ESI monthly filing deadline
15th of following monthESIC
Late payment penalty
12% per annum (simple interest) + damages 1% per month or part thereof from the date of defaultEPF Act / ESI Acts
PF wage ceiling (voluntary cap)
₹15,000/month is the statutory wage ceiling for EPF. Employers may choose to contribute on actual Basic + DA even if above ₹15,000 (most large employers do this). EPS is always capped at ₹15,000/month.
SSA
Social Security Agreement (India has SSAs with ~20 countries).
Basis of ESI calculation
ESI is calculated on **gross wages** (broader than PF wages)
Crossing the ESI threshold mid-period
If an employee's wages exceed ₹21,000/month mid-contribution period: - ESI contributions continue for the remainder of that contribution period - Employee ceases to be covered from the next contribution period - Employer must ensure coverage for the full 6-month period once started
EPF applicability for small establishments
EPF is mandatory for establishments with 20+ employees. Establishments with fewer may voluntarily register. Once registered, coverage continues even if numbers drop below 20.
Contract labour PF/ESI responsibility
The principal employer is responsible for PF/ESI of contract workers if the contractor fails to deposit. Both principal employer and contractor must be registered.
Fixed-term employee coverage
Fixed-term employees are entitled to same PF/ESI benefits as regular employees from day one. No waiting period.
PF Trust exemption
Large employers may apply for EPF exemption to manage their own PF trust. Must provide equal or better benefits. Trust must maintain accounts as per EPFO norms.
VPF rules
Employee may contribute above 12% voluntarily (up to 100% of Basic + DA). Employer contribution remains at 12% -- no additional employer obligation for VPF.
New establishment registration deadlines
A new establishment must register with EPFO within one month of employing 20 persons. ESI registration within 15 days of applicability.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Reviewed against the cited tax authorities by Mayur Deokar on 2026-06-06.
Items flagged for further clarification are tracked separately and excluded here.
This block is generated from verified skill_facts — edit the facts, not the prose.
Quick Reference
| Field | Value |
|---|---|
| Country | India (Republic of India) |
| Tax/Contribution | EPF (Provident Fund) + ESI (State Insurance) |
| Currency | INR only |
| Applicable period | FY 2025-26 (April 2025 -- March 2026) |
| EPF legislation | Employees' Provident Funds and Miscellaneous Provisions Act, 1952 |
| ESI legislation | Employees' State Insurance Act, 1948 |
| Administering bodies | EPFO (Employees' Provident Fund Organisation); ESIC (ESI Corporation) |
| Filing portal (EPF) | Unified Portal (unifiedportal-emp.epfindia.gov.in) |
| Filing portal (ESI) | ESIC Portal (esic.gov.in) |
| Skill version | 1.0 |
EPF Contribution Summary
| Component | Employer (%) | Employee (%) | On |
|---|---|---|---|
| EPF (Provident Fund) | 3.67% | 12% | Basic + DA |
| EPS (Employee Pension Scheme) | 8.33% | Nil | Basic + DA (capped at ₹15,000/month) |
| Total employer contribution | 12% | -- | Basic + DA |
| Total employee contribution | -- | 12% | Basic + DA |
Employer Administrative Charges
| Charge | Rate | On |
|---|---|---|
| EPF Admin charges | 0.50% | Total EPF wages (minimum ₹500/month if >20 employees) |
| EDLI (Employees' Deposit Linked Insurance) | 0.50% | Basic + DA (capped at ₹15,000/month) |
| EDLI Admin charges | Nil (removed w.e.f. 01-04-2017) | -- |
ESI Contribution Summary
| Component | Rate | On |
|---|---|---|
| Employer ESI | 3.25% | Gross wages (all components except certain exclusions) |
| Employee ESI | 0.75% | Gross wages |
| Total ESI | 4% | Gross wages |
ESI Wage Ceiling
| Threshold | Amount |
|---|---|
| ESI applicability (employee) | Gross wages ≤ ₹21,000/month |
| ESI applicability (disability employee) | Gross wages ≤ ₹25,000/month |
Applicability Thresholds
| Scheme | Applies When |
|---|---|
| EPF | Establishment employs 20 or more persons |
| ESI | Establishment employs 10 or more persons (in notified areas) |
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Unknown whether establishment is covered | Verify employee count -- do not assume |
| Unknown wage components | Include all regular earnings as PF wages unless specifically excluded |
| Unknown ESI area notification | Check ESIC notification for the area |
Wage Components for PF
| Included in Basic + DA (PF Wages) | Excluded from PF Wages |
|---|---|
| Basic salary | House Rent Allowance (HRA) |
| Dearness Allowance (DA) | Overtime allowance |
| Retaining allowance | Bonus (statutory or otherwise) |
| Cash value of food concession (if not provided) | Commission |
| Conveyance allowance | |
| Retrenchment compensation | |
| Gratuity |
Employer 12% Breakup
| Component | Rate | Cap |
|---|---|---|
| EPF account (employee's individual PF) | 3.67% | On full PF wages |
| EPS (Pension fund) | 8.33% | Capped at ₹15,000/month (max ₹1,250/month to EPS) |
| If PF wages > ₹15,000 | Balance of 8.33% above cap goes to EPF | Full 12% effectively goes to EPF |
Example: Employee with Basic + DA = ₹30,000/month:
EDLI Details
| Item | Detail |
|---|---|
| Purpose | Life insurance for EPF members |
| Employer contribution | 0.50% of Basic + DA (capped at ₹15,000/month) |
| Maximum EDLI contribution | ₹75/month per employee |
| Benefit on death | Up to ₹7,00,000 (₹7 lakh) |
| Employee contribution | Nil |
International Workers PF Treatment
| Scenario | PF Treatment |
|---|---|
| Indian employee sent abroad (no SSA country) | PF continues on Indian salary |
| Foreign national working in India (from SSA country) | Exempt from PF if covered in home country |
| Foreign national from non-SSA country | PF mandatory at full rate |
Wage Components for ESI
| Included | Excluded |
|---|---|
| Basic salary | Annual bonus (statutory) |
| DA | Retrenchment compensation |
| HRA | Encashment of leave on superannuation |
| City Compensatory Allowance | Gratuity |
| Overtime (for contribution purposes) | |
| All other regular cash payments |
Contribution and Benefit Periods
| Contribution Period | Benefit Period |
|---|---|
| 1 April -- 30 September | 1 January -- 30 June (following) |
| 1 October -- 31 March | 1 July -- 31 December (following) |
ESI Benefits
| Benefit | Coverage |
|---|---|
| Medical benefit | Full medical care for employee and family |
| Sickness benefit | 70% of wages for up to 91 days |
| Maternity benefit | Full wages for 26 weeks |
| Disablement benefit | 90% of wages (temporary); pension (permanent) |
| Dependants' benefit | 90% of wages as pension to dependants |
| Funeral expenses | ₹15,000 |
ECR Details
| Item | Detail |
|---|---|
| What is ECR | Monthly return declaring employee-wise PF contributions |
| Due date | 15th of the following month |
| Payment mode | Online through EPFO Unified Portal |
| Format | Upload employee data (UAN, name, wages, contribution breakup) |
| Late payment penalty | Simple interest at 12% per annum on delayed deposits |
| Damages | 5% to 25% per annum depending on delay period |
ESI Monthly Contribution Details
| Item | Detail |
|---|---|
| Due date | 15th of the following month |
| Payment mode | Online through ESIC portal |
| Return | Half-yearly return (now largely subsumed in monthly online filing) |
| Late payment penalty | Simple interest at 12% per annum |
| Damages | Up to 25% of arrears |
Annual Returns
| Return | Due Date | Covers |
|---|---|---|
| EPF Annual Return (Form 3A/6A) | Now via monthly ECR (no separate annual) | Automated through monthly ECR |
| ESI Return (Form 5) | Half-yearly (11 May and 11 November) | Contribution register |
Employee: Basic = ₹12,000/month, DA = ₹3,000/month, HRA = ₹5,000/month Gross = ₹20,000/month (below ₹21,000 ESI threshold)
Example 1 Calculation Table
| Component | Employer | Employee |
|---|---|---|
| EPF (on Basic + DA = ₹15,000) | ₹15,000 × 3.67% = ₹550.50 | ₹15,000 × 12% = ₹1,800 |
| EPS (capped at ₹15,000) | ₹15,000 × 8.33% = ₹1,249.50 | Nil |
| Total PF employer | ₹1,800 (12% of ₹15,000) | ₹1,800 |
| EDLI | ₹15,000 × 0.50% = ₹75 | Nil |
| PF Admin | ₹15,000 × 0.50% = ₹75 | Nil |
| ESI (on gross ₹20,000) | ₹20,000 × 3.25% = ₹650 | ₹20,000 × 0.75% = ₹150 |
| Total employer cost | ₹2,600 | -- |
| Total employee deduction | -- | ₹1,950 |
Employee: Basic + DA = ₹40,000/month, Gross = ₹65,000/month (above ₹21,000 ESI threshold)
Example 2 Calculation Table
| Component | Employer | Employee |
|---|---|---|
| EPF (on ₹40,000, if contributing on actual) | ₹40,000 × 3.67% = ₹1,468 | ₹40,000 × 12% = ₹4,800 |
| EPS (capped at ₹15,000) | ₹15,000 × 8.33% = ₹1,250 | Nil |
| Remaining to EPF | ₹40,000 × 8.33% − ₹1,250 = ₹2,082 | Nil |
| Total PF employer | ₹4,800 (12% of ₹40,000) | ₹4,800 |
| EDLI | ₹15,000 × 0.50% = ₹75 | Nil |
| PF Admin | ₹40,000 × 0.50% = ₹200 | Nil |
| ESI | Not applicable (gross > ₹21,000) | Not applicable |
| Total employer cost | ₹5,075 | -- |
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