Understanding PF and ESI Registration: What's the Minimum Employee Requirement?

Hi all, I just joined. I would like to know the exact rules for registering PF and ESI. For example, what is the minimum number of employees required?

The minimum number of employees is twenty employed on any day in the preceding twelve months.

Regards,
B. Saikumar

Please refer to Section 1(3) of the EPF & MP Act and Sections 1(5) and 2(12) of the ESI Act, subject to the wage ceiling for the applicability of these welfare legislations to the establishments.

Regards

[QUOTE=dksrivastava;2123953] Dear Mr. Rakesh,

EPF and ESIC Coverage Limits

At present, the coverage of EPF allows for a maximum salary of Rs. 6500/-, while for ESIC coverage, the maximum salary is Rs. 15000/-.

Sir,

What is the meaning of a maximum salary of Rs. 6500/- under EPF? If an employee earns more than Rs. 6500/-, will they not be eligible for PF benefits? If they are eligible, under what conditions?

Dharmender Kumar

Dear Mr. Dharmender,

In our organization, we are following the definition that "Salary" means BASIC + D.A. Suppose a person receives (Basic + D.A.) Rs. 6501/=, then we do not deduct EPF.

Regards,

Registration under the ESI Act is required in accordance with the notification issued by ESIC. If an establishment or factory employs 10 or more employees, they must apply for registration, regardless of whether the employees are covered under ESI or not. In other words, if an establishment or factory employs 10 employees, even if all of them are drawing a gross salary exceeding Rs. 15,000 per month, the establishment/factory must apply for and obtain ESI Registration.

PF Registration Requirements

Regarding PF, PF Registration must be obtained if a factory/establishment employs a minimum of 20 employees in a month. Employees who are drawing a salary (basic & DA) up to Rs. 6,500 per month are subject to PF contribution on basic & DA (Contribution = employees @12% & Employer @13.61%). Therefore, PF Registration is mandatory.

It should be noted that even if the number of employees is less than 20 in any establishment/factory per month, the factory/establishment, if willing to be covered under the PF Act, may voluntarily apply for PF Registration under the provisions of the PF Act.

Regards,
Sibabrata Majumdar

Management Consultant- Legal & HR

[Phone Number Removed For Privacy Reasons]

These links may help you:

- [Complete Details Regarding PF ESI Rules](https://www.citehr.com/203575-complete-details-regarding-pf-esi-rules.html)
- [PF PT ESI Calculation Professional Tax](https://www.citehr.com/70854-pf-pt-esi-calculation-professional-tax.html)

Let me know if you need any further assistance.

ESI Registration Requirements

For ESI registration, the number of employees should be 10 if power is used in the factory. If power is not used in the factory, then the number of employees must be 20.

Regards