ESI and PF Registration: Can Small Companies with 15 Employees Apply Now or Wait?

We are a Pvt. Ltd. company with a current strength of 15 employees. Is it possible to register for ESI & PF now, or is it mandatory to wait until the strength becomes 20?

First, please update the type of organization. Now, it's not mandatory for 20 employees. According to a recent amendment, if the employee strength reaches 10, then ESI and PF are mandatory.

Mr. Jeeva's statement is correct. You can also join these acts voluntarily. Please contact the relevant authorities for further course of action.

Regards,
Alphonse

The eligibility criteria for a shop & establishment vary from 20 to 10 employees from state to state, where the notification under section 1(5) of the ESI Act is provided for a particular state. First, clarify whether your company falls under a Factory or establishment.

In the case of an establishment, if ESI reduces the number of persons required for coverage from 20 to 10 in your state as per the Gazette, then your unit will be covered. Otherwise, you have to wait until you reach 20.

Subject: ESIC & PF

I fully agree with the reply of Mr. KVJ Raghunath.

Regards,
Vinod Chauhan
Consultant
New Delhi

I think it depends on the organization. Your company becomes eligible for ESIC and PF when there are 10 employees working with the aid of power or 20 without the aid of power. However, even these employees must be eligible. So, if 15 employees of yours fulfill the criteria, then it's possible for you to register under ESIC and PF.

You can avail voluntary coverage for your employees in PF. However, in ESI, you have to wait until the employee strength reaches 20. Once you have reached 19 employees, you should start applying for ESI.

Thanks & Regards,

L. Subramaniam
[Phone Number Removed For Privacy Reasons]
HR Consultant
Valiant Management Care
Chennai.

However, you can take code voluntarily. If your company is covered under the Shop and Establishment Act, then for ESI, you should have 20 eligible employees. If it is a factory, then 10 eligible employees are required to register under ESI. No voluntary registration under ESI. In the case of PF, 20 employees are required.

Eligibility for ESI and PF Registration

If your company is covered under the Shops and Establishments Act, then for ESI, you should have 20 eligible employees. If it is a factory, then 10 eligible employees are required to register under ESI. There is no voluntary registration under ESI.

In the case of PF, 20 employees are required; however, you can take the code voluntarily.