In Pf Esi Employer

---
name: in-pf-esi-employer
description: "Use this skill whenever asked about Indian EPF (Employees' Provident Fund), ESI (Employees' State Insurance), or employer social security obligations. Trigger on phrases like \"PF contribution India\", \"EPF employer\", \"ESI contribution\", \"provident fund India\", \"PF admin charges\", \"EDLI\", \"EPS pension\", \"ECR filing\", \"PF return\", \"ESI threshold\", \"PF applicability\", \"12% PF\", \"employer PF obligation\", or any question about computing, depositing, or filing EPF/ESI in India. This skill covers EPF contribution rates, EPS, EDLI, ESI rates and thresholds, applicability criteria, monthly filing (ECR), and compliance deadlines. ALWAYS read this skill before touching any Indian PF/ESI employer work."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/in-pf-esi-employer"
  jurisdiction: "IN"
  tax_year: "2026"
  last_updated: "2026-10-17"
---

# India EPF and ESI: what the employer must pay and file

This Guide covers an Indian employer's provident fund (EPF), pension (EPS), deposit-linked insurance (EDLI) and Employees' State Insurance (ESI) obligations. Figures are for tax year 2026. Social security contributions in India are not set by tax year, so the Guide states the rules in force on 17 October 2026 and the date each one started. The law moved twice: the Code on Social Security, 2020 came into force on 21 November 2025 and replaced the EPF Act 1952 and the ESI Act 1948 for most purposes; then the Social Security (Central) Rules, 2026 (8 May 2026) and the Employees' Provident Funds Scheme, 2026, Employees' Pension Scheme, 2026 and Employees' Deposit-Linked Insurance Scheme, 2026 (all notified 29 June 2026) replaced the old rules and schemes. Anything that still cites the 1952 Act, the 1948 Act or the EPF Scheme 1952 for a current rate is out of date.

Most rates are printed in WORDS in the law ("twelve per cent", "three and one-fourth per cent"). This Guide writes them in words, as the law does. Several amounts the old Guides carried as digits (the EPF wage ceiling, the ESI wage ceiling, the EPF administrative charge, the EDLI contribution rate, the interest rate on late payment) are fixed by government notification, and no notification printing them could be read. Where that is so, the Guide says what to check and gives no number.

## Section 1: Quick Reference

| Field | Value |
| --- | --- |
| Country | India |
| Contributions | Provident fund (EPF), pension (EPS), deposit-linked insurance (EDLI), Employees' State Insurance (ESI) |
| Currency | INR only |
| Rules in force | On 17 October 2026 |
| Parent law | Code on Social Security, 2020 (36 of 2020), Chapter III (provident fund) and Chapter IV (ESI) |
| EPF rules | Employees' Provident Funds Scheme, 2026 (G.S.R. 525(E)), in force on publication, which supersedes the EPF Scheme 1952 |
| Pension rules | Employees' Pension Scheme, 2026 (G.S.R. 527(E)), which supersedes the Employees' Pension Scheme 1995 |
| Insurance rules | Employees' Deposit-Linked Insurance Scheme, 2026 (G.S.R. 526(E)), which supersedes the 1976 scheme |
| ESI rules | Social Security (Central) Rules, 2026 (G.S.R. 344(E)), rule 19 (contribution rates) |
| Administering bodies | Central Board (EPFO) for Chapter III; the Corporation (ESIC) for Chapter IV |
| Registration | Form-I of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, on the Shram Suvidha Portal (Social Security (Central) Rules, 2026, rule 5) |

### When each law started

| Item | Value | Note |
| --- | --- | --- |
| Source | all dates below | https://egazette.gov.in/WriteReadData/2025/267882.pdf |
| Code on Social Security, 2020: commencement of most provisions | 21 November 2025 | "the Central Government hereby appoints the 21st day of November, 2025 as the date on which the following provisions of the said Code, shall come into force" |

S.O. 5319(E) as first printed listed only clause (c) of section 16(1) and items 1, 2 and 4 to 9 of section 164(1). A corrigendum, S.O. 5936(E) of 19 December 2025, replaced those entries with "section 16 except the provisions of the Code specified at serial numbers (ii), (iii) and (iv) of S.O.2060(E)" and "sub-section (1) of section 164 except ... serial number (vi) of S.O.2060(E)". The excepted provisions were already in force from 3 May 2023 (S.O. 2060(E)): section 16(1)(b), section 16(1)(a) in so far as it relates to the Pension Scheme, and the repeal of the pension provisions of the EPF Act 1952. So section 16 and the repeal of the EPF Act 1952 apply from 21 November 2025. Section 164(2)(b), brought in by the same corrigendum, kept the EPF Scheme 1952, the EDLI Scheme 1976, the Pension Scheme 1995 and the ESI rules and regulations in force, to the extent not inconsistent with the Code, for one year; the 2026 schemes replaced the first three on publication.

| Item | Value | Note |
| --- | --- | --- |
| Source | all dates below | https://egazette.gov.in/WriteReadData/2025/268694.pdf |
| Corrigendum to S.O. 5319(E) (S.O. 5936(E)) | 19 December 2025 | "New Delhi, the 19th December, 2025 S.O. 5936(E)" |

| Item | Value | Note |
| --- | --- | --- |
| Source | all dates below | https://egazette.gov.in/WriteReadData/2023/245642.pdf |
| S.O. 2060(E): section 16(1)(b) and the pension parts of section 16(1)(a) and of the EPF Act repeal in force | 3 May 2023 | "hereby appoints the 3rd day of May, 2023, as the date on which the following provisions of the said" |

| Item | Value | Note |
| --- | --- | --- |
| Source | all dates below | https://egazette.gov.in/WriteReadData/2026/272366.pdf |
| Social Security (Central) Rules, 2026: notification date (in force on publication) | 8 May 2026 | "New Delhi, the 8th May, 2026 G.S.R. 344(E)." |

| Item | Value | Note |
| --- | --- | --- |
| Source | all dates below | https://egazette.gov.in/WriteReadData/2026/273957.pdf |
| Employees' Provident Funds Scheme, 2026: notification date (in force on publication; Gazette dated 29 June 2026) | 29 June 2026 | "New Delhi, the 29th June, 2026 G.S.R. 525(E)." |
| Employees' Enrolment Campaign, 2026 ends | 31 October 2026 | "cease to operate on the 31 st day of October, 2026" |

### Coverage thresholds

| Item | Value | Note |
| --- | --- | --- |
| Source | all thresholds below | https://egazette.gov.in/WriteReadData/2020/222111.pdf |
| EPF (Chapter III) applies to an establishment with | twenty or more employees | "Every establishment in which twenty or more employees are employed. IV Employees’ State Insurance" |
| ESI (Chapter IV) applies to an establishment with | ten or more persons | "Every establishment in which ten or more persons are Corporation employed other than a seasonal factory" |

ESI also applies to an establishment in a hazardous or life-threatening occupation notified by the Central Government even with a single employee (First Schedule, proviso). Once a Chapter applies, it keeps applying even if the headcount later falls below the threshold (section 1(8)). Employees paid above the wage ceiling still count towards the headcount (section 2(26), proviso). An employer and a majority of employees may agree to bring a smaller establishment into EPF (section 1(5)) or ESI (section 1(7)).

| Item | Value | Note |
| --- | --- | --- |
| Source | all items below | https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251121701501.pdf |
| ESI: no "notified areas" test any more; small establishments may opt in | fewer than 10 employees | "Establishments with fewer than 10 employees may voluntarily opt in with mutual consent of employers and employees." |

### Conservative Defaults

| Ambiguity | Default |
| --- | --- |
| Unknown whether the establishment is covered | Count every employee, including those above the wage ceiling; do not assume |
| Unknown wage components | Apply the section 2(88) definition of wages and the one-half add-back (Section 2.1) |
| Unknown current wage ceiling (EPF or ESI) | Do not use a remembered figure; get the current notification from the client's EPFO or ESIC login or the Gazette |
| Unknown whether an employee is an International Worker | Ask for passport and any certificate of coverage before computing |

## Section 2: EPF, EPS and EDLI

### 2.1 Wages for contributions

The schemes apply their rates to "wages". The EPF Scheme 2026 says words it does not define take the Code's meaning (paragraph 2(2)), and the EDLI Scheme 2026 points to clause (88) of section 2 of the Code (paragraph 5(1)). Section 2(88) of the Code defines wages once, for every Chapter.

| Included in wages (Code s. 2(88)) | Excluded from wages (Code s. 2(88)) |
| --- | --- |
| Basic pay | Statutory or other bonus that is not part of the remuneration under the terms of employment |
| Dearness allowance | Value of house accommodation, light, water, medical attendance or another excluded amenity |
| Retaining allowance, if any | Employer contribution to a pension or provident fund, and interest on it |
| Remuneration in kind, up to fifteen per cent of total wages (Explanation) | Conveyance allowance or travelling concession |
|  | Sums to defray special expenses of the job |
|  | House rent allowance |
|  | Remuneration under an award or settlement |
|  | Overtime allowance |
|  | Commission |
|  | Gratuity on termination |
|  | Retrenchment compensation, other retirement benefit, ex gratia on termination |

The one-half rule: if the excluded items in the first nine exclusions (bonus to commission) exceed one-half of total remuneration, the excess is added back into wages.

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2020/222111.pdf |
| Exclusions above this share of all remuneration are added back to wages | one-half | "exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration" |
| Remuneration in kind counted as wages, up to | fifteen per cent | "which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages" |

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251122702601.pdf |
| Government summary of the one-half rule | 50% | "exceed 50% of the total remuneration (or such percentage as notified by the Government), the excess amount will be added back to wages" |
| EPF appeal deposit, with Social Security Organisation concerned | 25% | "deposit of 25% of the awarded amount determined by the EPFO officer will be required to be deposited by the employer" |

### 2.2 EPF contribution rates (EPF Scheme 2026, paragraph 18)

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2026/273957.pdf |
| Employer contribution | twelve per cent | "at the rate of twelve per cent of the wages payable to the employee, to whom this Scheme applies and the employees’ contribution shall be equal to the employer’" |
| Employee contribution | equal to the employer's | "the employees’ contribution shall be equal to the employer’s contribution in respect of such employee" |
| Reduced rate, notified class of establishments only | ten per cent | "Provided that the rate of contribution shall be ten per cent in respect of the class of establishments notified by the Central Government" |
| Wage ceiling | notified by the Central Government | "wage ceiling limit, notified by the Central Government from time to time: Provided that subject to the provisions contained" |
| The same rates in digits, as printed in the scheme's monthly return form for exempted PF trusts (contribution rate field) | 12% | "Contribution rate Selection from 10 or 12% as applicable" |

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2020/222111.pdf |
| Code section 16(1)(a) provident fund rate as printed (twelve per cent for notified establishments) | ten per cent | "the contributions paid by the employer to the fund shall be ten per cent. of the wages for the time being payable" |

How it works:
- Both shares are on the wages actually drawn or payable for the month, whether paid daily, weekly, fortnightly or monthly (paragraph 18(4)).
- Each contribution is rounded to the nearest rupee: fifty paise or more goes up, less than fifty paise is ignored (paragraph 18(5)).
- Where the monthly wage is above the wage ceiling, both shares are limited to the contribution on the ceiling (paragraph 18(3)), unless the employer and the employee jointly opt in writing to contribute on the higher wage; the employer then also pays administrative charges on it (paragraph 9(4)).
- An employee whose wage is above the ceiling when he would otherwise join is an "excluded employee" (paragraph 2(f)(i)); he joins as soon as he stops being excluded (paragraph 9(3)).
- The ten per cent rate applies only to a class of establishments the Central Government has notified. The list was not on any page read; ask for the notification before using it.
- The scheme does not print the ceiling. The amount in the old Guide could not be read on any allowed page. Get the current notification before computing. This is the "wage ceiling" in section 2(89) of the Code (the EDLI Scheme applies "the wage ceiling specified in clause (89) of section 2 of the Code").

### 2.3 How the employer's share is split (Employees' Pension Scheme 2026, paragraph 4)

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2026/273951.pdf |
| Part of the employer's contribution sent to the Pension Fund, on wages up to the ceiling | eight and thirty-three hundredths per cent | "a part of contribution of eight and thirty-three hundredths per cent. of the wages of employee up to wage ceiling notified by the Central Government" |
| Central Government contribution to the Pension Fund (not an employer cost) | one and sixteen hundredths per cent | "The Central Government shall contribute to the Scheme at the rate of one and sixteen hundredths per cent. of the pay" |
| Employer pension share for members with an accepted joint option for higher wages (from 1 September 2014) | nine and forty-nine hundredths per cent | "the contribution of the employer shall be nine and forty-nine hundredths per cent. of the wages of each member" |
| Wages to which that increased share applies | above fifteen thousand rupees per month | "such increased contribution shall be applicable to wages exceeding fifteen thousand rupees per month" |

How it works:
- The pension share comes out of the employer's twelve per cent; it is not an extra cost. What is left of the employer's share stays in the provident fund account.
- The pension share is on wages up to the wage ceiling only. Where the wage is above the ceiling, the employer's and the Central Government's pension contributions are limited to the amount on the ceiling.
- The higher pension share applies only to members who exercised the joint option under paragraph 11 of the old 1995 scheme and were found eligible. For them, the employer's pension share is nine and forty-nine hundredths per cent, and the increase applies to wages above fifteen thousand rupees per month. Do not read that sentence as the general wage ceiling; the ceiling is set by notification (Section 2.2).
- The pension share is rounded to the nearest rupee, fifty paise up (paragraph 4(3)).
- It is remitted within fifteen days of the close of every month, with the cost of remittance borne by the employer (paragraph 4(1)).

### 2.4 EDLI (Employees' Deposit-Linked Insurance Scheme 2026)

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2026/273942.pdf |
| Contribution rate | notified by the Central Government | "The rate of contribution shall be notified by the Central Government in consultation with the Central Board from time to time" |
| Death benefit floor (twelve months' continuous employment limb) | two lakh and fifty thousand rupees | "the assurance benefit shall not be less than two lakh and fifty thousand rupees and shall not exceed seven lakh rupees" |
| Death benefit cap (same limb) | seven lakh rupees | "the assurance benefit shall not be less than two lakh and fifty thousand rupees and shall not exceed seven lakh rupees" |

How it works:
- Only the employer pays EDLI. It may not deduct the contribution from wages or recover it from the employee (paragraph 8).
- The contribution is on section 2(88) wages up to the wage ceiling (paragraph 5(1)). The rate is notified, and the notification was not on any page read; the old Guide's fixed rate is not stated here.
- The employer pays EDLI contributions and administrative charges within fifteen days of the close of every month, electronically (paragraph 6(1)).
- The death benefit is paid to the family, not by the employer. It is set by a formula on average wages and the provident fund balance; the floor and cap above apply to the limb for a member employed continuously for twelve months before death. Leave benefit claims to the EPFO.

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2020/222111.pdf |
| Upper limit the Code sets for the EDLI contribution | one per cent | "not being more than one per cent. of the wages or such per cent. of wages as may be notified by the Central Government" |

### 2.5 Administrative charges

The EPF Scheme 2026 makes the employer pay "administrative charges or other fees or charges" with the contributions (paragraph 20(1)) and extra administrative charges on wages above the ceiling where there is a joint option (paragraph 9(4)) or voluntary contributions (paragraph 19(3)). It does not print the rate. The old Guide's rate and monthly minimum could not be read on any allowed page. Take the current rate from the EPFO portal.

### 2.6 International Workers (EPF Scheme 2026, paragraphs 2, 9 and 10)

| Scenario | Treatment |
| --- | --- |
| Foreign passport holder working for a covered establishment in India | An "International Worker"; must join the Fund from the date of joining the establishment (or the date the scheme applies to it, whichever is later) |
| Indian employee who has worked or will work in a country with a social security agreement and can get benefits there | Also an "International Worker" under paragraph 2(j)(ii) |
| International Worker who contributes at home under a social security agreement and holds detached-worker status | An excluded employee for the period and terms of the agreement |
| International Worker covered by a pre-1 October 2008 comprehensive economic agreement that exempts contributions | An excluded employee |
| Nepalese or Bhutanese national under the 1950 and 2007 treaties | Treated as an Indian worker |
| Worker in a country listed in the paragraph 9(6) table who wants detachment under that agreement | Pays, with the employer, on total wages under section 2(88). The table lists one country: the United Kingdom |
| Employer return | Monthly upload of International Workers joining, transferring in and leaving, within fifteen days of the close of each month (paragraph 24) |

The live Guide's count of agreements has been removed: no allowed page prints it. Whether the general wage ceiling exclusion applies to an International Worker is not settled by the text read; refer (see "When to refuse or refer").

## Section 3: ESI

### 3.1 Contribution rates (Social Security (Central) Rules 2026, rule 19)

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2026/272366.pdf |
| Employer contribution | three and one-fourth per cent | "three and one- fourth per cent. of the wages payable to an employee; and" |
| Employee contribution | three-fourth per cent | "three-fourth per cent. of the wages payable to an employee. (2) In respect of an employee who is a person with disability" |
| Sickness benefit (paid by the Corporation) | seventy per cent | "at the rate of seventy per cent. of the ―Standard Benefit Rate‖ of that person during the corresponding contribution period" |
| Disablement benefit, daily rate (paid by the Corporation) | ninety per cent | "The daily rate of disablement benefit shall be ninety per cent. of the standard benefit rate in the contribution period" |
| Funeral expenses (rule 21) | twenty thousand rupees | "shall be notified by the Corporation and shall be twenty thousand rupees" |
| Confinement medical bonus where ESI facilities are not available | rupees fifteen thousand | "rupees fifteen thousand per case as medical bonus on account of confinement expenses" |

How it works:
- Each share is a sum "rounded to the next higher rupee" on the wages payable for the wage period (rule 19(1)). That is a different rounding rule from EPF.
- For an employee who is a person with disability under the Rights of Persons with Disabilities Act, 2016 and under the National Trust Act, 1999, the employer does not pay its share for up to three years from the start of the contribution period, or such period as the Central Government specifies; the Central Government reimburses the Corporation (rule 19(2) and (3)). The employee's share is still due.
- An "exempted employee" for ESI is one "whose wage is specified in the notification by the Central Government and who is not liable to pay employee's contribution" (Code section 2(31)); the employer still pays its share. The notified wage was not read; check it before deducting the employee share.
- The employer pays both shares and may recover the employee's share only by deduction from the wages of the period it relates to (Code section 31(2)). It may never deduct its own share from wages (section 31(3)) and bears the cost of remitting (section 31(5)).
- Wages are the Code's section 2(88) wages (Section 2.1). The live Guide's wider "gross wages" list (HRA, overtime, all cash payments) does not match the Code text read; see "When to refuse or refer".
- The ESI wage ceiling is "wage ceiling" under section 2(89) of the Code, set by notification "for the purposes of becoming a member under Chapter III and Chapter IV". No notification printing it could be read. Do not use a remembered amount. And section 2(26), first proviso: for Chapter IV an employee is one "drawing wages less than or equal to the wage ceiling".

### 3.2 Contribution period and benefit period

The Social Security (Central) Rules 2026 define each as a period "not exceeding six consecutive months", "as specified in the regulations made under section 157" (rule 2). The regulations were not readable, so the Guide gives no calendar dates. Contributions for a wage period ordinarily fall due on the last day of the wage period (Code section 29(4)).

### 3.3 ESI benefits (paid by the Corporation, for context)

| Benefit | Rule in the Social Security (Central) Rules 2026 |
| --- | --- |
| Sickness | Seventy per cent of the standard benefit rate (table above), if contributions were payable for at least seventy-eight days in the contribution period; not for the first two days of a spell (unless it follows the last paid spell within fifteen days); not more than ninety-one days in two consecutive benefit periods (rule 22(1)) |
| Maternity | Daily rate equal to the standard benefit rate, for up to twenty-six weeks, of which not more than eight weeks before the expected confinement (rule 22(3)) |
| Confinement expenses | Medical bonus in the table above, where ESI facilities are not available, for two confinements only (rule 22(4)) |
| Disablement | Ninety per cent of the standard benefit rate (table above), the "full rate" (rule 22(5)) |
| Dependants | Shares of the full rate: the widow three-fifths, each son until twenty-five and each unmarried daughter two-fifths (rule 22(6)) |
| Funeral expenses | Amount in the table above (rule 21) |

### 3.4 Crossing the ESI Threshold

See "When to refuse or refer" below for when an employee who crosses the ESI wage ceiling mid-period leaves coverage; the rule sits in regulations that could not be read.

## Section 4: Filing and Payment

### 4.1 EPF, EPS and EDLI

| Item | Detail |
| --- | --- |
| First return | Consolidated return in Form V within fifteen days of the scheme applying to the establishment; a "Nil" return if nobody qualifies (EPF Scheme 2026, paragraph 24(1)) |
| Monthly payment | Employer and employee shares and administrative charges, within fifteen days of the close of every month (paragraph 20(1)); pension share in the same period (Pension Scheme paragraph 4(1)); EDLI in the same period (EDLI Scheme paragraph 6(1)) |
| Monthly return | Electronic Challan-cum-Return (named in paragraph 19(1)); plus, within fifteen days of the close of each month, uploads of new members, transfers in and leavers (paragraph 24(2)) |
| Ownership return | Form VI after registration (paragraph 24) |
| Contract labour | The employer pays both shares for workers engaged through a contractor where the contractor's establishment is not registered independently; the principal employer stays responsible (paragraph 20(1) to (4)) |

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2026/273957.pdf |
| Payment due date | within fifteen days of the close of every month | "within fifteen days of the close of every month in the manner specified by the Central Board. (2) In respect of an emplo" |
| Damages, default of less than two months, per month on the arrears | 0.25% | "Less than two months 0.25% 2 More than two months and 0.50%" |
| Damages, default of more than two and less than four months, per month | 0.50% | "0.50% less than four months 3 More than four months 1% (2) T" |
| Damages, default of more than four months, per month | 1% | "More than four months 1% (2) The damages specified" |

Damages are a monthly rate on the arrears and may not exceed the arrears (paragraph 23(1)). The same table applies to defaults under paragraph 32-A of the 1952 scheme from 14 June 2024 (paragraph 23(2)). It replaces the live Guide's annual damages bands. EDLI damages follow the same EPF table (EDLI Scheme paragraph 7(1)).

Interest on late payment: the Code charges simple interest "at such rate as may be notified from time to time by the Central Government" (section 127). No notification printing the rate was read, so the live Guide's annual rate is not stated here.

### 4.2 ESI

| Item | Detail |
| --- | --- |
| Who pays | The employer pays both shares, for direct and contractor employees (Code section 31(1)) |
| When due | Contributions for a wage period ordinarily fall due on the last day of the wage period (section 29(4)); the payment date and return periods are in the Corporation's regulations, which were not readable. Check the ESIC portal |
| Interest and damages | Simple interest at the notified rate (section 127); damages not exceeding the arrears, in the manner the regulations specify (section 128) |
| Disputes | The employer must deposit with the Employees' Insurance Court the share of the amount claimed shown below before raising a dispute (the Court may waive or reduce it) |

| Item | Value | Note |
| --- | --- | --- |
| Source | all figures below | https://egazette.gov.in/WriteReadData/2020/222111.pdf |
| Deposit to dispute an ESI claim in the Employees' Insurance Court | fifty per cent | "unless he has deposited with that Court fifty per cent. of the amount due from him as claimed by the Corporation" |
| Deposit to appeal an EPF assessment, with Social Security Organisation concerned | twenty-five per cent | "deposited with Social Security Organisation concerned twenty-five per cent. of the amount due from him as determined by an officer under section 125" |

### 4.3 Annual returns

The live Guide's ESI half-yearly return dates could not be read on any allowed page and are removed. EPF has no separate annual return in the EPF Scheme 2026: the Form V first return and the monthly uploads above are what paragraph 24 requires.

## Section 5: Computation Examples

All wages here are hypothetical. Each example assumes the employee is at or below both wage ceilings, which you must confirm from the current notifications.

### Example 1: Employee in both EPF and ESI

Hypothetical: monthly wages under section 2(88) of 12,000 rupees; no exclusions above one-half.

| Component | Working | Employer | Employee |
| --- | --- | --- | --- |
| EPF employee share | twelve per cent of 12,000 rupees | nil | 1,440 rupees |
| EPF employer share (total) | twelve per cent of 12,000 rupees | 1,440 rupees | nil |
| of which pension share | eight and thirty-three hundredths per cent of 12,000 rupees = 999.60, rounded to the nearest rupee | 1,000 rupees | nil |
| of which left in the provident fund | 1,440 less 1,000 | 440 rupees | nil |
| ESI employer share | three and one-fourth per cent of 12,000 rupees | 390 rupees | nil |
| ESI employee share | three-fourth per cent of 12,000 rupees | nil | 90 rupees |
| EDLI and EPF administrative charges | rate notified; not on any page read | add from the EPFO portal | nil |

Employer cost before EDLI and administrative charges: 1,440 + 390 = 1,830 rupees. Deducted from the employee: 1,440 + 90 = 1,530 rupees.

### Example 2: Wages above the EPF ceiling, no joint option

Hypothetical: wages above the notified EPF ceiling (call the ceiling C). Both EPF shares are twelve per cent of C, not of actual wages (paragraph 18(3)); the pension share is eight and thirty-three hundredths per cent of C. If employer and employee jointly opt to contribute on actual wages (paragraph 9(4)), both shares are twelve per cent of actual wages, the pension share stays on C unless the member has an accepted higher-pension option (Section 2.3), and the employer pays administrative charges on the higher wages.

### Example 3: Employee with a disability in ESI

Hypothetical: the Example 1 employee is a person with disability under the 2016 Act and is in the first three years from the start of the contribution period. The employer share of 390 rupees is not payable by the employer (the Central Government reimburses it); the employee share of 90 rupees is still deducted and paid (rule 19(2) and (3)).

## Section 6: Edge Cases

### 6.1 Establishments below 20 employees

EPF applies to an establishment with twenty or more employees (First Schedule). Employers below that may be covered if the employer and a majority of employees agree (Code section 1(5)). Once a Chapter applies, it keeps applying even if numbers fall (section 1(8)). The government backgrounder of 22 November 2025 says the Code extends EPF to "all establishments that have 20 or more employees, regardless of the type of industry", replacing the old scheduled-industry list.

### 6.2 Contract Labour

For EPF, the principal employer is responsible for both contributions and administrative charges for workers engaged by or through a contractor whose establishment is not registered independently; the contractor recovers the employee's share and pays it to the principal employer (EPF Scheme 2026, paragraph 20). For ESI, the employer pays for employees employed directly or through a contractor and may recover from the contractor (Code section 31). Contributions paid for contractor employees may also be recovered from the contractor under section 17 of the Code.

### 6.3 Fixed-Term Employees

The Code defines fixed term employment as a written contract for a fixed period, and says the worker "shall be eligible for all benefits, under any law for the time being in force, available to a permanent employee proportionately according to the period of service rendered by him" (section 2(34)). The live Guide's "from day one, no waiting period" is not printed on any page read; apply the same EPF and ESI joining rules as for a permanent employee.

### 6.4 Exempted Establishments (PF Trust)

An establishment may be exempted under section 143 of the Code and run its own provident fund; contributions under its rules still feed the pension share (Pension Scheme paragraph 4(1)). The conditions of exemption were not read; refer.

### 6.5 Voluntary contributions (VPF)

An employee may opt to make an additional voluntary contribution "on wages exceeding the statutory wage ceiling at statutory rate or at any rate in excess of statutory rate", and the employer passes it to the Commissioner through the Electronic Challan-cum-Return (EPF Scheme 2026, paragraph 19(1)). The employer does not have to match it (paragraph 19(2)), but pays extra administrative charges on the wages carrying voluntary contributions (paragraph 19(3)). Voluntary contributions may not exceed wages after the deductions allowed under section 18(2) of the Code.

### 6.6 New Establishments and registration

Registration is electronic, in Form-I of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, on the Shram Suvidha Portal. If the application is complete, the certificate is issued within seven days or the establishment is deemed registered (Social Security (Central) Rules, 2026, rule 5(1)). Changes to the particulars must be updated within thirty days (rule 5(6)). The first EPF return is due within fifteen days of the scheme applying (Section 4.1). The live Guide's "within one month" (EPF) and "within 15 days" (ESI) registration deadlines are not printed on any page read and are removed.

### 6.7 Employees' Enrolment Campaign, 2026 and VISHWAS, 2026

The EPF Scheme 2026 Annexure lets any employer, until 31 October 2026, declare and enrol employees who joined between 1 April 2009 and 31 March 2026 and were never enrolled, with compliance from the month of declaration, provided the employee's share was not already deducted and kept. VISHWAS, 2026 is a separate damages scheme for defaults before 14 June 2024, valid for six months from the scheme's notification. After 31 October 2026 the campaign is closed; check whether it was extended before relying on it.

## Section 7: Prohibitions

- NEVER compute EPF or ESI on a component list from the old Acts: use section 2(88) wages and the one-half add-back
- NEVER use a remembered EPF or ESI wage ceiling, EPF administrative charge, EDLI rate or interest rate: each is notified, and none is printed in this Guide
- NEVER put more than eight and thirty-three hundredths per cent of wages up to the ceiling into the pension share, except for an accepted higher-pension joint option
- NEVER deduct the employer's EPF, EDLI or ESI share from the employee's wages
- NEVER apply EPF damages as an annual rate: the table is per month on the arrears, capped at the arrears
- NEVER miss the fifteen-day deadline after the close of the month for EPF, EPS and EDLI
- NEVER treat the ten per cent EPF rate as available without the notification covering the establishment's class
- NEVER present calculations as definitive; label them as estimates

## The method, step by step

1. Confirm the establishment is covered: twenty or more employees for EPF, ten or more persons for ESI (one for a notified hazardous occupation), counting employees above the wage ceiling. Law: Code on Social Security, 2020, First Schedule and section 1(8), https://egazette.gov.in/WriteReadData/2020/222111.pdf
2. Register on the Shram Suvidha Portal in Form-I if not registered. Law: Social Security (Central) Rules, 2026, rule 5, https://egazette.gov.in/WriteReadData/2026/272366.pdf
3. Work out each employee's wages under section 2(88): basic pay, dearness allowance and retaining allowance, plus any excess of the listed exclusions over one-half of total remuneration. Law: Code section 2(88), https://egazette.gov.in/WriteReadData/2020/222111.pdf
4. Get the current EPF and ESI wage ceilings, EPF administrative charge and EDLI rate from the current notifications (EPFO and ESIC portals, or the Gazette). This Guide does not print them.
5. EPF: employee and employer shares of twelve per cent of wages up to the ceiling (or actual wages under a joint option; or ten per cent for a notified class), rounded to the nearest rupee. Law: EPF Scheme 2026, paragraph 18, https://egazette.gov.in/WriteReadData/2026/273957.pdf
6. Split the employer's share: eight and thirty-three hundredths per cent of wages up to the ceiling to the Pension Fund, the rest to the provident fund. Law: Employees' Pension Scheme 2026, paragraph 4, https://egazette.gov.in/WriteReadData/2026/273951.pdf
7. Add EDLI at the notified rate on wages up to the ceiling, and EPF administrative charges. Law: EDLI Scheme 2026, paragraphs 5 and 6, https://egazette.gov.in/WriteReadData/2026/273942.pdf
8. ESI, for employees within the ESI wage ceiling: employer three and one-fourth per cent and employee three-fourth per cent of wages (none from an exempted employee under section 2(31)), each rounded up to the next rupee; no employer share for a person with disability for up to three years. Law: Social Security (Central) Rules, 2026, rule 19, https://egazette.gov.in/WriteReadData/2026/272366.pdf
9. Pay EPF, EPS and EDLI and file the Electronic Challan-cum-Return within fifteen days of the close of the month; upload joiners, transfers and leavers in the same period. Law: EPF Scheme 2026, paragraphs 20 and 24, https://egazette.gov.in/WriteReadData/2026/273957.pdf
10. Pay ESI by the date in the Corporation's regulations (check the ESIC portal). If any payment is late, expect simple interest at the notified rate and damages: for EPF, the monthly table in Section 4.1. Law: Code sections 127 and 128, https://egazette.gov.in/WriteReadData/2020/222111.pdf and EPF Scheme 2026 paragraph 23, https://egazette.gov.in/WriteReadData/2026/273957.pdf

## Ask the client first

- How many employees and other persons are on the payroll, including contract workers and anyone paid above the wage ceiling, and was the number ever at or above twenty (EPF) or ten (ESI)?
- What is each employee's pay broken down by component (basic, dearness allowance, HRA, conveyance, overtime, commission, bonus, in-kind benefits), so you can apply section 2(88) and the one-half test?
- Does any employee have a written joint option to contribute on wages above the ceiling, or an accepted higher-pension option under the old 1995 scheme?
- Is any employee a foreign passport holder, or an Indian posted abroad, and do they hold a certificate of coverage under a social security agreement?
- Is the establishment exempted under section 143 (own PF trust), notified for the ten per cent rate, or in a notified hazardous occupation?
- Does any employee have a disability under the 2016 Act, and when did their ESI contribution period start? What is the employee's daily wage, in case it falls within a notified exempted-employee band under section 2(31)?

## When to refuse or refer

- Which provident fund rate governed a month from 21 November 2025 until the EPF Scheme 2026: section 16(1)(a) of the Code, in force from that date, prints ten per cent with twelve per cent only for establishments the Central Government notifies (table in Section 2.2), while paragraph 18(2) of the 2026 Scheme prints twelve per cent with ten per cent for a notified class. No notification under the first proviso to section 16(1)(a) was read. Refer any dispute about the rate for those months.
- Any computation that needs the actual EPF or ESI wage ceiling, EPF administrative charge, EDLI rate, interest rate, or the list of ten per cent establishments, until the client provides the notification.
- International Workers: whether the wage ceiling exclusion applies to them, totalisation and detachment under a specific agreement, and withdrawals on leaving India.
- ESI wages: whether ESIC still applies a wider "gross wages" base than section 2(88) in practice; and when an employee who crosses the ESI ceiling mid-period leaves coverage. Both sit in regulations that could not be read.
- ESI payment due date and return periods (regulations not readable).
- Exempted PF trusts (section 143), damages waivers under an insolvency plan, VISHWAS, 2026 cases, and any EPFO inquiry under section 125 or appeal.
- Benefit claims (EDLI death benefit, pension, ESI benefits): refer to the EPFO or ESIC.
- Salary TDS, gratuity and bonus: use `india-payroll`. Professional tax: use `in-professional-tax`.

## Sources

- Code on Social Security, 2020 (36 of 2020): https://egazette.gov.in/WriteReadData/2020/222111.pdf
- S.O. 5319(E), commencement of the Code, 21 November 2025: https://egazette.gov.in/WriteReadData/2025/267882.pdf
- Corrigendum to S.O. 5319(E), S.O. 5936(E), 19 December 2025: https://egazette.gov.in/WriteReadData/2025/268694.pdf
- S.O. 2060(E), commencement of section 16(1)(b) and the pension parts of section 16(1)(a) and of the EPF Act repeal, 3 May 2023: https://egazette.gov.in/WriteReadData/2023/245642.pdf
- Social Security (Central) Rules, 2026, G.S.R. 344(E): https://egazette.gov.in/WriteReadData/2026/272366.pdf
- Employees' Provident Funds Scheme, 2026, G.S.R. 525(E): https://egazette.gov.in/WriteReadData/2026/273957.pdf
- Employees' Pension Scheme, 2026, G.S.R. 527(E): https://egazette.gov.in/WriteReadData/2026/273951.pdf
- Employees' Deposit-Linked Insurance Scheme, 2026, G.S.R. 526(E): https://egazette.gov.in/WriteReadData/2026/273942.pdf
- Government backgrounder on the Labour Codes, 21 November 2025: https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251121701501.pdf
- Government backgrounder on the Code on Social Security, 22 November 2025: https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251122702601.pdf

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## Today's figures and who stands behind this skill

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