ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

EPF registration is applicable for all establishment which employs 20 or more persons. EPF registration can also be obtained voluntarily by establishments having less than 20 employees.

The EPF contribution paid by the employer is 6% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In case of establishments which engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%. For most employees working in the private sector, it’s the basic salary on which the contribution is calculated. It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. employee whose salary is more than 15000 required consent of employer to register under EPF.

EPF Registration is Mandatory by employers as per Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 for the welfare of employees.