When does PF become applicable?

PF (EPF) generally becomes mandatory once an establishment employs 20 or more people. Below that, voluntary registration is possible. Confirm your position, as some classes of establishment differ.

When are PF and ESI due?

Both are due by the 15th of the month following the wage month — for example, 15 May for April wages.

What is the penalty for late PF deposit?

Interest at 12% per annum on the contribution, plus separate slab-based damages levied by the EPFO depending on how long the delay lasted.

PF and ESI — when they apply and when they're due

Hiring your first employees? Here's when PF and ESI kick in, the contribution rates, the 15th-of-the-month due date, and what late deposit costs.

1 June 2026 · ComplianceStack

Payroll triggers new compliance

The moment you start hiring, a new set of obligations switches on. The two big ones are PF (Employees' Provident Fund) and ESI (Employees' State Insurance), and the first question is always: do they even apply to me yet?

When PF applies

PF generally becomes mandatory once you employ 20 or more people. The standard contribution is 12% of basic wages from the employee and 12% from the employer (part of the employer's share goes to the pension scheme). Below 20 employees you can register voluntarily.

When ESI applies

ESI generally applies at 10 or more employees (the threshold varies by state), for those earning up to ₹21,000 per month. The contribution is 0.75% from the employee and 3.25% from the employer on gross wages.

Not sure what applies to your headcount and entity? Try the applicability quick-check.

The due date is the same for both

Both PF (via the ECR) and ESI contributions are due by the 15th of the month following the wage month. April wages → due 15 May. It's an easy date to remember, and an expensive one to miss.

What late deposit costs

Late deposit attracts interest at 12% per annum on the contribution. For PF, the EPFO additionally levies damages on a slab basis — the longer the delay, the higher the percentage. ESI similarly charges interest on delayed payment.

You can estimate the due date and the interest with the PF & ESI due-date & delay calculator.

Beyond PF and ESI

Employing people can also trigger professional tax (state-specific), labour welfare fund contributions, and registration under the Shops & Establishment Act. These vary by state, which is exactly the kind of thing a deterministic applicability engine is good at sorting out.

Keeping payroll compliance on track

Put PF, ESI and the rest on one calendar with their due dates and challans as evidence, scoped to your payroll vendor. That's the payroll bucket in ComplianceStack — visible to you, owned by the right person, and provable later.

General information, not advice — confirm thresholds and rates for your state and establishment with your payroll consultant or CA.

FAQs

When does PF become applicable?: PF (EPF) generally becomes mandatory once an establishment employs 20 or more people. Below that, voluntary registration is possible. Confirm your position, as some classes of establishment differ.
When does ESI become applicable?: ESI generally applies to establishments with 10 or more employees (the threshold varies by state) and covers employees earning up to ₹21,000 a month.
When are PF and ESI due?: Both are due by the 15th of the month following the wage month — for example, 15 May for April wages.
What is the penalty for late PF deposit?: Interest at 12% per annum on the contribution, plus separate slab-based damages levied by the EPFO depending on how long the delay lasted.

This article is general information, not tax, legal or accounting advice. Statutory timelines and thresholds change by notification — confirm applicability and interpretation with your CA, CS, or lawyer before acting.

Know exactly what applies to you

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