Payroll & social security
PF & ESI compliance services
A late PF or ESI challan brings interest, damages and, for deducted shares, prosecution. We pay your contributions by the 15th on the right wages, with Professional Tax, Labour Welfare Fund and inspections handled too.
- Zero interest or damages
- Contributions paid by the 15th
- Wages worked out under the Codes
- Notices and inspections handled
Coverage
Who has to register for PF and ESI
Coverage turns on headcount, not on turnover or industry. The Code on Social Security, 2020, in force from 21 November 2025, brings an establishment under EPF at 20 employees and under ESI at 10. Once covered, an establishment stays covered even if its headcount later falls below the limit.
Professional Tax and Labour Welfare Fund are state levies. Each state that charges them sets its own slabs, rates and due dates, so an employer with offices in three states can be running three different PT calendars at once. We track both state by state for that reason.
- Employees' Provident Fund
- 20employees or more
- Registration with EPFO. Employer and employee each contribute 12% of wages. Part of the employer's share goes to the pension scheme, and the employer also pays EDLI insurance and administration charges.
- Employees' State Insurance
- 10employees or more
- Registration with ESIC for employees within the notified wage limit. The employer pays 3.25% and the employee 0.75% of wages, for medical care and cash benefits during sickness, maternity and disablement.
- Employees' Professional Tax
- By state
- Registration in each state that levies it. Slabs, deductions and filing dates differ from one state to the next.
- Labour Welfare Fund
- By state
- Small fixed contributions from employer and employee, paid yearly or half-yearly depending on the state.
The monthly cycle
One month of PF and ESI, run to the 15th
Contributions on a month's wages are due by the 15th of the following month. Pay late and interest and damages follow, so everything before that date is about getting the numbers right early enough to pay on time.
Due date, every month
following month
Next: 15 Nov· in 24 days
Start of the month
Payroll inputs come in
Your HR or payroll team shares the month's wage register, with joiners, leavers and any pay revisions. If we run your payroll as well, this step stays inside our team.
Before the challans
Wages are checked
We work out PF and ESI wages on the Labour Codes' definition: where excluded allowances run above half of total pay, the excess counts as wages. New joiners get a UAN and an ESI IP number. Leavers are marked out with their correct date of exit.
Days before the 15th
Challans reach you for payment
The ECR is uploaded on the EPFO portal and the ESI contribution filed on the ESIC portal. You receive the challans, check the amounts and pay online from your own account.
By the 15th
Paid, and receipts on file
Each payment is matched to its challan, and the receipts go into your records, ready for any inspection.
Through the month
Everything else that falls due
Professional Tax and Labour Welfare Fund on each state's own calendar, registers kept current, and employee questions answered through our PF helpdesk.
The cost of non-compliance
What a late challan really costs
Under the Code on Social Security, a missed 15th is not settled by paying late. Interest, damages and, for deducted shares, imprisonment follow.
Exposure under the law
Source
Up to 100%
of the arrears, as damages
01Damages on late contributions
EPFO or ESIC can levy damages of up to the amount in arrears, after a hearing, on top of simple interest from the due date.
Code on Social Security, 2020, s.127 and s.128
1–3 years
and a ₹1 lakh fine
02Employee's share deducted, not paid
Deducting the employee's contribution from wages and not depositing it carries imprisonment of at least one year.
Code on Social Security, s.133(i)(a)
2–6 months
and a ₹50,000 fine
03Employer's share not paid
For failing to pay any other contribution you are liable for. The court can set a shorter term only for reasons it records.
Code on Social Security, s.133(i)(b)
2–3 years
and a ₹3 lakh fine
04A second default
A repeat conviction for failing to pay contributions carries at least two years' imprisonment.
Code on Social Security, s.134
Directors
deemed guilty with the company
05Liability that reaches the board
Every person directly in charge of the business when a contribution goes unpaid is deemed guilty with the company, as is any director or officer whose neglect caused it.
Code on Social Security, s.135
Why NK One
Every filing, zero penalties.
Every PF and ESI challan we prepare is paid by the 15th, on the right wages for the right people, so interest and damages never start.
Zero-penalty guarantee
No late fees, no interest, no surprise demands on anything we file for you. Every due date is tracked by people who have done this for 20 years.
Direct partner access
Since 2007, clients speak to the partners who run NK One, not a new compliance executive learning on your account.
Scope of service
What we take off your desk
Four areas of work, from the first registration to the day an inspector asks for your records.
- File01
Registrations and codes
Where it starts for a new establishment, or a new state.
- EPF and ESI registration for the establishment
- Employees' Professional Tax (EPT) registration in each state
- Amending EPF, ESI and EPT codes when details change
- UAN generation under EPF and IP numbers under ESI
- File02
Monthly contributions
The cycle above, run every month.
- PF and ESI wages worked out under the Labour Codes
- Monthly ECR and ESI contribution challans
- EPT returns prepared and filed
- Statutory payments remitted on time
- File03
Records, notices and inspections
What an inspector asks to see, kept ready.
- Payroll records and statutory registers maintained
- Replies to notices from EPFO, ESIC and state PT authorities
- Support during inspections, including ESIC inspections
- Assistance during audits and assessments
- File04
Professional Tax review
A state-by-state check, useful once you have grown into new locations.
- PT registration checked in every state you operate in
- Monthly and annual PT returns and payment records reviewed
- Gaps in deductions, late filings and missed state obligations found
- Corrections carried into the monthly work, not just reported
Employee support
Support your employees will notice
PF and ESI are employee benefits first. When a UAN is not linked to Aadhaar or a bank account, it is the employee whose withdrawal gets stuck. So part of our work is directly with your people.
Employee KYC on the UAN
IllustrationUniversal Account Number
1001 •••• ••••
- Aadhaar Linked
- PAN Linked
- Bank account Verified
- ESI family details Registered
KYC complete
KYC kept up to date
Aadhaar, PAN and bank details updated against each UAN, so claims and transfers are not rejected.
An online PF helpdesk
Employees bring their PF questions to us, instead of queueing at your HR desk.
Pension and EDLI
We help retiring employees with pension claims, and families with EDLI insurance claims.
ESI family details
Dependants registered with ESIC, so the family can use ESI hospitals and dispensaries when it needs to.
Labour Codes
What the Labour Codes changed for PF and ESI
The Code on Social Security, 2020 took effect on 21 November 2025. It replaced the ESI Act that day; the repeal of the EPF Act was left out of that first notification, so the EPF schemes carried on, and the EPF wage ceiling of September 2026 is issued under the Code. For most employers the biggest change is not the contribution itself but the wage it is calculated on.
Common mistakes
Where PF and ESI usually go wrong
Most PF and ESI notices trace back to a handful of causes. None of them is complicated. All of them get expensive once interest and damages are added.
Mistake 01 of 05
Paying after the 15th
Late payment attracts interest for the delay and damages on top. An employee's share that was deducted from salary but not deposited is treated as a far more serious offence than a late employer share.
How we prevent it
Challans reach you a few days before the 15th, with time to check the amounts and pay.
Why NK One
PF and ESI is the core of our practice
Our ISO 9001:2015 certificate (QMS/2834/1026) names PF & ESI and Professional Tax in its certified scope. Every client has a dedicated relationship manager, and we reply within two working hours.
- Year we started, in Bengaluru
- 2007
- Challans and returns filed every month
- 300+
- Employees under our compliance management
- 3,500+
- Establishments and factories covered
- 250+
FAQ
Questions about PF & ESI compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
Is PF compulsory for an establishment with fewer than 20 employees?
No. EPF registration becomes mandatory at 20 employees. A smaller establishment can still join voluntarily if the employer and a majority of employees agree. Once an establishment is covered, it stays covered even if its headcount falls later.
What is the due date for PF and ESI payments?
Both are due by the 15th of the month after the wages are earned, so October's contributions are due by 15 November. Interest and damages apply to late payments, which is why we prepare the challans well before the date.
How do the Labour Codes change PF and ESI contributions?
The Code on Social Security, 2020 uses a single definition of wages. Allowances excluded from wages cannot add up to more than half of total pay, and the excess is counted back. If your salary structure keeps basic pay low, your PF and ESI base may rise. We review the structure and work out the effect for you.
Who is covered under ESI?
Employees of a covered establishment whose wages fall within the limit notified by the government. The employer contributes 3.25% of wages and the employee 0.75%. In return, employees and their dependants receive medical care at ESI hospitals and dispensaries, along with cash benefits during sickness, maternity and disablement.
Do you handle Professional Tax and Labour Welfare Fund as well?
Yes. We register you in each state that levies them, deduct and pay at that state's rates, and file returns on its calendar. We also review past PT filings across your locations, so gaps are found and corrected before they turn into penalties.
What happens during a PF or ESI inspection?
An inspector can ask for registers, wage records, challans and returns for a period, and compare them with what was filed. We prepare those records, support you through the inspection, and reply in writing to any observations.
We use contractors. Is their workers' PF and ESI our responsibility?
The contractor pays it, but if the contractor defaults, the dues can be recovered from you as the principal employer. Checking each contractor's registrations and monthly challans is part of our contractor and vendor compliance service.
What does PF compliance cost an employer?
Beyond the employer's 12% contribution, the employer pays EDLI insurance and administration charges on PF wages. Interest and damages arise only when contributions are late. For our own fee, send us an enquiry with your headcount and locations and we will come back with a quote.
Related
Related services
Contractor & vendor compliance
Contract labour compliance for each contractor: entry and exit, registers, returns, EPF and ESI.
Payroll services
Payroll processing for varied pay structures, with ESI, PF, PT, LWF, bonus and gratuity compliance.
Labour Codes advisory
Code on Wages review of HR policies, employment letters and wage structures.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
