Provident Fund & ESI Compliance in India
The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 and the Employees' State Insurance Act, 1948 are among the most frequently enforced labour laws in India. Both require timely monthly contributions, accurate employee data management, and periodic statutory filings — with penalties for late payment, short deduction, and incorrect returns that accumulate quickly.
DYSEN LLP manages PF and ESI compliance as an integrated monthly programme — handling every obligation from payroll data collection through contribution remittance, return filing, employee queries, and claim support. Our structured process eliminates the risk of missed deadlines and ensures your EPFO and ESIC records are always current and accurate.
Provident Fund (EPF) Compliance
The EPF Act applies to establishments with 20 or more employees and covers three schemes — the Employees' Provident Fund Scheme, the Employees' Pension Scheme, and the Employees' Deposit Linked Insurance Scheme. Each requires accurate contribution computation, timely remittance, and diligent record maintenance.
What We Manage — PF
- PF registration of new establishments and coverage extension for existing registrations
- Monthly Electronic Challan cum Return (ECR) preparation and filing before the 15th of each month
- Accurate computation of employer and employee contributions including EPF, EPS, and EDLI
- Universal Account Number (UAN) generation for new joiners and KYC document seeding (Aadhaar, PAN, bank account)
- UAN activation, KYC approval, and employee portal access management
- Monthly challan generation and contribution remittance tracking
- PF transfer facilitation — Form 13 processing for employees joining from previous organisations
- PF withdrawal and advance claim support — Form 19, Form 10C, Form 31, and online claim assistance
- Annual PF returns and employee passbook reconciliation
- Handling of EPFO notices, inspection queries, and reconciliation requests
- Exempted establishment compliance management where applicable
- International Workers compliance under the EPF Act
Employee State Insurance (ESI) Compliance
The ESI Act applies to establishments with 10 or more employees (in most states) where any employee draws wages up to ₹21,000 per month (₹25,000 for persons with disability). It provides insured employees with medical, sickness, maternity, and other benefits — funded through employer and employee contributions.
What We Manage — ESI
- ESI registration of new establishments and sub-code registration for branch offices
- Monthly ESI contribution computation — 3.25% employer contribution and 0.75% employee contribution on applicable wages
- Monthly ESI return filing and challan remittance before the 15th of each month
- Generation of ESI Pehchan cards (insurance numbers) for new employees and their dependants
- Half-yearly return filing (Form 5) for each contribution period — April to September and October to March
- Management of employee wage ceiling breaches — timely exclusion of employees whose wages exceed the ₹21,000 threshold
- Coordination with employees for sickness, maternity, and injury benefit claims
- Maintenance of ESI registers — Form 6 (register of employees) and attendance records
- ESIC inspection support and response to notices from ESIC authorities
- Liaison with ESIC branch offices for employer and employee queries
Governing Legislation
Penalties for Late or Short Payment
Under the EPF Act, damages for delayed payment range from 5% to 25% per annum of the arrear amount depending on the period of delay — in addition to interest at 12% per annum. Under the ESI Act, failure to pay contributions attracts simple interest at 12% per annum. Both acts also provide for prosecution of employers and responsible officers for wilful default.
Our Monthly PF & ESI Process
- Data collection — Receive payroll inputs including new joiners, exits, salary revisions, and leave without pay details by the agreed cutoff date
- Contribution computation — Calculate PF (EPF + EPS + EDLI) and ESI contributions for all eligible employees with accuracy checks
- ECR & ESI return preparation — Prepare and validate the Electronic Challan cum Return for EPFO and the monthly contribution statement for ESIC
- Filing & remittance — Submit returns and generate challans by the 15th of each month — well ahead of the deadline
- UAN & insurance number updates — Process new joiner registrations, KYC seeding, and UAN activation within the same cycle
- Monthly reconciliation — Reconcile EPFO and ESIC portals against payroll data to catch and resolve discrepancies immediately
- Employee support — Handle employee queries on PF balance, UAN, claim status, and ESI benefits throughout the month