Tax & Compliance·8 min read
PF & ESI Registration: Labour Compliance for Growing Teams
Register PF and ESI before scale bites—true employer cost, monthly filings, and inspector-ready records.
May 10, 2025
What you'll take away
- PF often at 20+ employees; many startups register early for benefits.
- ESI applies from 10+ employees in covered establishments.
- Employer cost is 12%+ on PF wages—not optional if liable.
- Pelago sets up EPFO/ESIC and monthly ECR.
PF basics
Employees and employer each contribute 12% of basic wages (within wage ceiling).
UAN must be generated for every employee.
Monthly ECR filed by 15th with payment.
ESI basics
Applies when headcount and establishment type meet thresholds; wage ceiling notifications change—verify yearly.
Employer ~3.25%, employee ~0.75% on applicable wages.
First hires on payroll?
PF/ESI registration, CTC structuring, and monthly compliance.
Setup payroll complianceRegisters and inspections
Maintain attendance, wages, and leave registers under Shops Act.
Contractors on site may trigger labour-code scrutiny—classify correctly.
Founder tip: Show true PF-inclusive CTC in offer letters—surprise deductions kill offer acceptance.
Pelago payroll stack
CTC design, PF/ESI registration, monthly challans, Form 16, and coordination with Shop Act registration.