Navigating ESI and PF Registration: How Soon Should a New HR Manager Act?

I have started working as an HR manager in a network firm with an employee base of around 35. How long do I have to register for ESI and PF if the company is 8 months old? Do we need to have a legal department to deal with the same?

I belong to a different background, hence I need to know the information from scratch. This company is a dream project for my friend. I would be extremely thankful for any input I can get.

Thanking in anticipation,

Regards,
Varun

You are covered under the Shops and Establishments Act because you are not involved in any manufacturing. Currently, your employee strength is 35. You should immediately register for ESI and PF. Also, refer to your state rules for registration under the Shops and Establishments Act.

Please keep in mind that if all your employees' gross income crosses Rs. 15,000, you do not need to apply for ESI. However, you should enroll with PF immediately.

Feel free to call me if you need any help.

Regards,
Eswar K
[Phone Number Removed For Privacy Reasons]

Please also add that if all employees have a basic salary of more than $6,500, then there is no need for PF registration.

Thank you.

There is no need for any legal department. An HR manager must take care of all things that come under statutory compliance. Also, remember that you have to maintain all registers under the Shop Act and register your organization under the Shop Act.

Regards.

I agree, Mahesh. Thanks for the input. As everywhere, the practice of making PF compulsory helps avoid such confusions in the future. To give the benefit to an employee, it is one of the best ways to implement PF deduction, which also provides IT deductions.

Regards,
Eswar.K

If you have more than 20 employees in your company, then you need to register for EPF and deposit the EPF funds into the PF account. Please let me know if you need further assistance with the EPF registration process.