Can I Register for ESI and EPF with Only 12 Employees? Seeking Clarity on Eligibility

Hi,

I understand that for the registration of ESI or EPF, a company should have a minimum of 20 employees. Currently, my company employs only 12 people. However, I am willing to extend the benefits to our employees even though the number falls below the minimum required for registration under ESI or EPF. My query is whether I can still apply for registration of ESI and EPF despite our employee strength being less than the minimum requirement.

Can anyone clarify?

Hi,

You can go for Provident Fund Registration voluntarily, but you will not get ESI Registration unless your company has 20 employees whose salary is less than 10000/-.

I have one query. I am working in a company as an Asst HR & Admin, which is registered under the shop act and has a workforce of 10 employees. Can you please help me understand if ESI and PF are applicable to our company?

Thank you.

We have done this for one of our suppliers. They had only 8 people on payroll, and we insisted that they register for PF & ESI. Since they didn't have enough numbers, we suggested including an excess number of employees to reach the count required by PF & ESI, and they got registered. In the consecutive month, they showed the rest of the people we added as having left, and now with 8 members, they are continuing. So, if you think you have to cover your employees under PF & ESI, for one month, you have to bear a few hundreds, and from then on, you could cover them in actual.

Dear SN Krishnamoorthy, Have a nice day. You are applying for ESI Registration under the said Act (as per the latest amendment of the ESI Act). The minimum requirement is 10 or more employees for any establishment. For P.F., you are not eligible for registration under the EPF and MP Act, 1952. However, your application falls under section 1(4) (voluntary). Go ahead.

With warm regards,

Compulsory Registration for Organizations with More Than 20 Employees

Is it compulsory for an organization to get itself registered if the employees are more than 20?

Companies with 10 employees are required to cover ESIC. If this is not done, ESI coverage will begin once the employee count reaches 10.