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

Krishna

1/7/20261 min read

white concrete building
white concrete building

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.