These are the twin pillars of Social Security. EPF (Provident Fund) is a retirement saving scheme, while ESIC (Employee State Insurance) is a health insurance scheme for your workers. In 2026, these are managed through a “Shram Suvidha” portal. They are no longer “optional” once you hit the head-count—they are mandatory employee rights.
Eligibility & Criteria
- Limits:
- PF: Mandatory if you have 20+ employees.
- ESIC: Mandatory if you have 10+ employees (20+ in some states).
- Penalties: Delay in registration or non-contribution leads to heavy interest (12% p.a.) and damages ranging from 5% to 25% per annum. Non-deposit of deducted employee share is a criminal offense.