Understanding PF and ESIC Applicability in Simple Terms
PF and ESIC are core statutory benefits, yet their applicability often creates confusion among HR professionals—especially in early-stage organisations.
PAYROLL, PF & BENEFITS
PF Applicability
Mandatory for establishments with 20+ employees
Covers eligible salary components
Contributions by employer and employee
ESIC Applicability
Based on wage ceilings and location
Applies to notified areas
Covers medical and social security benefits
HR’s Role
HR must track:
Employee eligibility
Wage limits
Monthly remittances
Linked to our pillar article on Payroll Basics Every HR Professional Should Understand.


