Yes, a director drawing a salary from the establishment will be covered by EPF and other labor laws subject to the 'eligibility conditions' of salary/wage. Accordingly, if his salary is not more than Rs 15,000, then he should be given PF coverage. Even if his salary is more than Rs 15,000, he may be covered provided he is an existing member of PF, having been covered by EPF when he was with his previous employment. Similarly, if his salary is not more than Rs 21,000, he should be given ESI coverage also. When this director leaves your company after completing five years of continuous service, he should be paid gratuity also.