Payroll Statutory Compliance
PF & ESIC Return Filing and Monthly Compliance
Provident fund and employee insurance run on the same wage data but under two different laws, two portals and two sets of records. We run them as one monthly cycle so the numbers cannot drift apart.
- One cycle, both statutes
- Contribution computed from the payroll run
- Challans generated and reconciled monthly
- Member and employee data kept current
- EPF compliance
- ESI compliance
- Monthly challans
- Reconciliation
Recurring engagement
PF & ESIC Monthly Compliance
On quotescope-based
- Cadence
- Monthly
- Laws
- EPF & ESI
- Basis
- Covered employees
- Output
- Filed returns & challans
- Member and employee data upkeep
- Joiner and exit reporting
- Contribution computation
- Challan generation
- Payment support within prescribed periods
- Portal filing
- Monthly reconciliation with payroll
- Compliance record maintenance
*Professional fee depends on the number of covered employees, the number of establishment codes and whether payroll processing is included. Employer and employee contributions are statutory, payable at prescribed rates, and are separate from our fee.
Cadence
Every month
PF
Members & ECR
ESI
Employees & contribution
Control
Payroll reconciled
Professionally reviewed by CA Suraj SoniLast reviewed
Should PF and ESI compliance sit with one team?
Two statutes, one wage register.
This usually fits employers who
- hold an EPF establishment code, an ESI employer code, or both
- process payroll internally but want the statutory filings handled
- have had a month missed, or a challan paid late, in the recent past
- employ workers through contractors at their premises
- operate more than one location or establishment code
- want the monthly filings reconciled against the payroll register every month
It may not be needed where you
- are not covered under either Act on the facts of your establishment
- already have an internal team performing and reviewing both filings
- have no employees within the coverage criteria of either scheme
- need only a one-time review of past filings rather than ongoing compliance
Coverage under the EPF Act and the ESI Act is determined separately on the facts of your establishment, including class of establishment, employment strength, wages and, for ESI, whether the Act has been implemented in your area. An establishment can be covered by one, both or neither.
One cycle, because the data is the same.
Both schemes read from the wage register for the month. Where an employer runs them separately, the usual result is that one filing uses a wage figure the other does not — and the difference is discovered during an inspection or a member grievance rather than during the month. Running them as one cycle means the wage base, the joiner and exit list and the contribution computation are settled once and used for both.
Shared wage base
Contributions for both schemes are computed off the same finalised monthly wage register.
Separate rules
Each scheme has its own definitions, wage limits and prescribed rates, applied separately within the same cycle.
Two portals
Filing and payment happen on the EPFO and ESIC systems, with acknowledgements retained for both.
One reconciliation
Filed figures are reconciled back to payroll each month, so gaps are caught immediately.
Signature module
The payroll statutory compliance cycle.
Each month runs one cycle with two tracks. PF and ESI are computed separately under their own rules, from the same finalised wage data.
- 01Shared input
Wage register
The finalised monthly payroll register is taken as the single source for both schemes.
- 02EPF
PF · member data
New members, UAN linking, KYC status and exits updated so the member list is accurate for the month.
- 03EPF
PF · contribution
Employee and employer contributions computed on the wages prescribed under the scheme.
- 04EPF
PF · challan & filing
The electronic return is prepared, the challan generated and payment made within the prescribed period.
- 05ESI
ESI · employee data
Covered employees, insurance numbers, family particulars and exits updated for the contribution period.
- 06ESI
ESI · contribution
Employee and employer contributions computed at prescribed rates for employees within the wage limit.
- 07ESI
ESI · payment & filing
The contribution is filed and the challan paid within the period prescribed under the regulations.
- 08Close
Reconciliation
Both filings reconciled with the payroll register, differences explained, records archived for the month.
Close, review, and the cycle restarts — the same sequence, on the same dates, every month.
Contribution rates, wage limits and payment periods are prescribed under the respective schemes and can be revised by notification. Your calendar and rate configuration are maintained inside the engagement rather than printed here.
What monthly statutory discipline protects
No accumulating exposure
Interest and damages on delayed contribution build quietly. A monthly cycle with a fixed calendar is the only reliable prevention.
Employees actually get their benefit
Correct member data and timely contribution are what let an employee draw benefits or see their fund balance without a grievance.
Inspection readiness
Challans, filings and reconciliations are maintained month by month, so an inspection is a document request rather than an emergency.
Contract labour exposure managed
Where workers are engaged through contractors at covered premises, the principal employer's position is reviewed rather than assumed away.
Clean vendor and tender records
Compliance evidence is frequently sought in vendor onboarding and tender processes, and is available on request.
Payroll and filings agree
Monthly reconciliation means the payslip, the register and the filed return tell the same story.
How the obligation is determined
EPF coverage
Coverage depends on the class of establishment, employment strength and the notifications in force. Once the Act applies, coverage generally continues even if strength later falls.
ESI coverage
Coverage depends on the class of establishment, whether the Act has been implemented in the area, employment strength and the prescribed wage limit for employees.
Covered employees
Not every employee on the payroll is covered under each scheme. Coverage is assessed employee by employee against the criteria in force.
Wage definitions
Each scheme has its own definition of wages for contribution purposes. Applying the payroll gross to both is a common and expensive error.
Rates and limits
Contribution rates and wage limits are prescribed and can be revised by notification. Our configuration is updated centrally rather than assumed.
Contribution periods
ESI operates on defined contribution and benefit periods, which affect coverage where an employee's wages change mid-period.
Contract labour
Workers engaged through a contractor at covered premises can be covered, and responsibility may extend to the principal employer depending on the arrangement.
Consequences of delay
Delayed contribution attracts interest and damages under the respective schemes, and persistent default can lead to recovery proceedings.
Readiness check
Is your payroll statutory compliance under control?
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Getting started
Let's get the basics in place.
- 01
Are PF and ESI contributions computed from the same finalised wage register?
- 02
Is every covered new joiner registered in the month of joining?
- 03
Are exits marked promptly on both portals?
- 04
Are challans paid within the prescribed periods every month?
- 05
Are filed contributions reconciled with payroll each month?
- 06
Are contractor workers at your premises covered by verified compliance?
Your score is only a starting point. A short consultation can confirm your proposed structure, name strategy and documentation before filing begins.
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Getting started
Let's get the basics in place.
- Codes
- Members
- Wages
- Challans
- Exits
What we need each month
- EPF establishment code and portal credentials
- ESIC employer code and portal credentials
- Digital signature or e-Sign details of the authorised signatory
- Details of all units, branches and locations
How the compliance engagement runs.
Position review first, then a fixed monthly rhythm.
- 01Onboarding
Position review
Establishment codes, past filings, open demands and the current state of member and employee data are reviewed.
- 02Onboarding
Coverage confirmation
We confirm which employees are covered under each scheme on the facts, rather than applying a blanket rule.
- 03Onboarding
Data clean-up
Missing UANs, incomplete KYC, unmarked exits and stale family particulars are identified and corrected.
- 04Onboarding
Calendar set-up
A monthly calendar is agreed around your payroll date so filings never depend on a last-minute scramble.
- 05Monthly
Monthly computation
Contributions computed for both schemes from the finalised wage register.
- 06Monthly
Filing and payment
Returns filed and challans paid on both portals within the prescribed periods, with acknowledgements retained.
- 07Monthly
Reconciliation and report
Filed figures reconciled with payroll, and a short compliance report issued to management.
- 08Quarterly
Periodic review
Coverage, contract labour arrangements and data quality reviewed so the position stays current as you hire.
Every month, both statutes
Put PF and ESI compliance on a single reliable cycle.
Your monthly compliance engagement
PF and ESI, separated clearly, run together.
- 01
PF — member data
IncludedMember additions, UAN generation or linking, KYC status tracking and exit marking each month.
- 02
PF — contribution computation
IncludedEmployee and employer contribution computed on the wages prescribed under the scheme for each member.
- 03
PF — challan and compliance
IncludedElectronic return preparation, challan generation and payment support within the prescribed period.
- 04
PF — reconciliation
IncludedFiled contribution reconciled with the payroll register and with challans paid, with differences investigated.
- 05
ESI — employee data
IncludedRegistration of covered new joiners, family and nominee particulars, dispensary mapping and exit updates.
- 06
ESI — contribution computation
IncludedContribution computed at prescribed rates for employees within the wage limit, including mid-period wage changes.
- 07
ESI — payment and compliance
IncludedContribution filing and challan payment on the ESIC portal within the prescribed period.
- 08
ESI — reconciliation
IncludedContribution filed reconciled with the payroll register and with coverage decisions for the month.
- 09
Compliance records
IncludedChallans, acknowledgements, registers and reconciliations maintained month by month for inspection.
- 10
Monthly compliance report
IncludedA short statement of what was filed, what was paid and anything requiring management attention.
- 11
Payroll processing
On requestFull payroll with salary computation, payslips and payroll TDS.
- 12
PF or ESIC registration
On requestWhere the establishment is covered but not yet registered, or a new code is required.
- 13
Past-period regularisation
On requestBringing earlier months into compliance, including interest and damages exposure assessment.
- 14
Inspection and notice support
On requestAssistance during EPFO or ESIC inspections, inquiries and demand proceedings.
- 15
Employee claim support
On requestGuidance to employees on withdrawal, transfer or benefit claims, where offered under the engagement.
Where workers are engaged through contractors at your premises, contractor compliance verification is scoped explicitly — responsibility can extend to the principal employer depending on the arrangement.
What monthly PF and ESI compliance costs.
Fee is quoted per month based on the number of covered employees and establishment codes, and whether payroll processing is included in the same engagement.
Professional fee
On quotescope-based
Fees are quoted in writing after a scope review. Government / statutory fees at actuals.
Professional services
MYFINTAX feeData upkeep, contribution computation, filing, challan generation and monthly reconciliation across both schemes.
Covered headcount
VariesThe number of covered employees is the main effort driver for both schemes.
Establishment codes
VariesAdditional codes, units or States add filing and reconciliation effort.
Employer and employee contributions
StatutoryPayable at prescribed rates under each scheme. Interest and damages apply on delay. These are your statutory cost.
Past-period regularisation
VariesCorrection of earlier months, including exposure assessment, quoted separately after review.
Inspection support
VariesRepresentation during inspections and responses to demand notices, quoted by matter.
Statutory contributions are always shown separately from professional fee. We never present a combined figure that hides which is which.
PF and ESI duties, side by side.
| Parameter | EPF | ESI |
|---|---|---|
| Nature | Retirement savings, pension and insurance | Medical care and cash benefits |
| Governing law | EPF & MP Act, 1952 | ESI Act, 1948 |
| Employee identifier | Universal Account Number | Insurance number |
| Monthly data focus | Member list, UAN and KYC status | Covered employees, family particulars |
| Coverage test | Class of establishment and employment strength | Class, implemented area, strength and wage limit |
| Wage change mid-year | Membership generally continues once a member | Coverage continues to the end of the contribution period |
| Filing output | Electronic return and challan | Contribution filing and challan |
| Delay consequence | Interest and damages | Interest and damages |
The two are administered separately and should never be computed from a single blended assumption about wages or coverage.
The monthly rhythm
What each compliance month looks like.
Step 1
Data window
- Finalised wage register received
- Joiners, exits and wage changes confirmed
- Contractor workforce details updated
Step 2
PF track
- Member data updated
- Contribution computed
- Return prepared and challan generated
Step 3
ESI track
- Covered employee list updated
- Contribution computed
- Filing prepared and challan generated
Step 4
Payment
- Challans shared for payment
- Payment made within the prescribed periods
- Payment confirmations retained
Step 5
Reconciliation
- Filed figures reconciled with payroll
- Differences investigated and documented
- Records archived for the month
Step 6
Review
- Monthly compliance report to management
- Open items and risks flagged
- Coverage re-checked as headcount changes
The value is in the repetition. A cycle that runs the same way every month is what keeps interest, damages and grievances out of the picture.
Statutory payroll compliance sits inside a bigger system.
Wages feed PF, ESI, salary TDS and the books. Keeping them with one team is what stops four versions of the same number.
- Company Registration
- Accounting
- GST
- GST Returns
- TDS
- Income Tax
- ROC Compliance
- Trademark
- Startup India
- Virtual CFO
Avoid these PF and ESI mistakes.
Using one wage figure for both schemes
Each scheme defines wages for contribution differently. A single blended figure produces short contribution under one law or excess under the other.
Registering joiners late
A covered employee should be brought on record from the date of joining. Late registration creates arrears, damages and a benefit gap for the employee.
Not marking exits
Employees who have left but remain on the portal distort contribution and create grievances at withdrawal or transfer.
Dropping an employee on a mid-period raise
Under ESI, an employee whose wages cross the limit during a contribution period generally continues to be covered until that period ends.
Ignoring contractor workers
Compliance for workers engaged at covered premises through a contractor should be verified, since liability can reach the principal employer.
Paying late because payroll was late
Interest and damages run irrespective of internal delays. The calendar has to work backwards from the statutory period.
Never reconciling filings with payroll
Without a monthly reconciliation, differences accumulate silently and surface during an inspection.
Why MYFINTAX
CA-led judgement
Your position is reviewed by a Chartered Accountant, not simply pushed through a portal form.
End-to-end responsibility
One team from documentation and filing to the notices and compliance that can follow.
Transparent scope
You know what is professional fee, what is statutory and what varies before you commit.
Business-first advice
Advice is given against your actual operations, not as a generic default.
Continuity
Accounting, GST, TDS, payroll, ROC and CFO support sit in the same ecosystem when you need them.
“MYFINTAX has been a true partner in our compliance journey. From GST filings and ROC annual returns to trademark registration, everything is handled professionally and on time. Their proactive approach has helped our creative brand stay protected and compliant.”
Snehal Tripathi
Director, Roboto Studio Pvt Ltd
“Our export compliance, IEC, and legal structuring were managed end-to-end by MYFINTAX. Their expert guidance on Startup India registration and tax exemption eligibility was particularly valuable for our global trade operations.”
Shweta SK Tirkey
Director, ArchAngel Exim Private Limited
“As a financial services business, MYFINTAX's assistance with DPIIT recognition, income tax filings, and trademark protection gave us the right support for our growth journey. Their team understands the nuances of regulatory compliance and startup taxation and provides practical guidance whenever required.”
Nitin Nashine
Director, GISA Insurance Brokers Limited
Let one team run payroll and the filings.
When the wage register and the statutory filings come from the same cycle, reconciliation is automatic rather than an exercise.
Explore payroll managementNot registered yet?
Where coverage applies but registration has not been obtained, we handle applicability review and employer registration.
Explore PF registrationFAQs
PF & ESIC Return Filing and Monthly Compliance — questions founders ask
Still unsure? A short call with a Chartered Accountant is usually faster than reading one more page.
PF & ESIC Compliance
Contributions computed once, filed on time, reconciled every month.
Share your establishment codes and headcount. We will review your current position, flag anything needing regularisation and propose a monthly cycle and fee.
CA Suraj Soni · Chartered Accountant · Founder, MYFINTAX
Content reviewed for current regulatory and procedural relevance on .
Employees' Provident Funds and Miscellaneous Provisions Act, 1952 with the schemes framed under it, the Employees' State Insurance Act, 1948 with the regulations made under it, and the monthly filing workflow on the EPFO Unified Portal and the ESIC portal.
Content is for general informational purposes and does not constitute case-specific professional advice. Requirements, fees and processing depend on your facts and current Government procedure.
Related services
- Payroll ManagementThe wage register both filings depend on.
- PF RegistrationEmployer coverage and code allotment.
- ESIC RegistrationCoverage review and employer registration.
- TDS Return FilingSalary TDS alongside statutory contributions.
- Accounting & BookkeepingPayroll cost recorded correctly in the books.