Mumbai, as a financial and commercial hub of India, houses thousands of employers who are required to comply with statutory social welfare schemes like ESI (Employees' State Insurance) and EPF (Employees' Provident Fund). These schemes provide financial and medical benefits to employees and their families, while also ensuring compliance and security for employers.

If you're an employer in Mumbai, this detailed guide walks you through the eligibility, process, documents required, and post-registration compliance for both ESI and EPF.

1. Applicability & Eligibility

✅ ESI Registration is Mandatory for:

• Any establishment employing 10 or more employees (in Maharashtra)

• Where any employee earns ₹21,000 or less per month (₹25,000 for persons with disabilities)
  

✅ EPF Registration is Mandatory for:

• Any establishment employing 20 or more employees, regardless of their salary

• Voluntary registration is possible for employers with fewer employees
  

2. Benefits to Employers and Employees

ESI Benefits

(for employees and their families):

• Medical treatment in ESIC hospitals/clinics

• Sickness benefits (70% of wages for up to 91 days)

• Maternity and paternity benefits

• Disability and dependent benefits

• Funeral expenses and rehabilitation support

EPF Benefits:

• Retirement savings through monthly contributions

• Monthly pension under Employees’ Pension Scheme (EPS)

• Insurance cover under Employees’ Deposit Linked Insurance (EDLI)

• Tax-free interest and withdrawals

• Easy loan or advance against PF balance

3. Documents Required for Registration

📝 Documents for ESI Registration:

• Certificate of Incorporation / Registration of Business

• GST Certificate or Shop & Establishment License

• PAN Card of the Company

• Address Proof of the Business (electricity bill, rent agreement, etc.)

• Cancelled Cheque or Bank Statement

• List of all employees with:

  • Name

  • Date of joining

  • Monthly salary

  • Aadhar and PAN

  • Contact details

📝 Documents for EPF Registration:

• Certificate of Incorporation / Partnership Deed / LLP Agreement

• PAN Card of the Business

• Address Proof of the Registered Office

• Cancelled Cheque or Bank Statement

• DSC (Digital Signature Certificate) of Authorized Signatory

• Employee Details:

  • Names, date of joining, salaries, Aadhaar, PAN

  • Designation and department

• Business activity details

4. Step-by-Step Registration Process

Both ESI and EPF registrations are now done online through the Shram Suvidha Portal, which integrates Labour Law compliance for Indian businesses.

🔹 Step 1: Create an Account

• Visit the Shram Suvidha Portal (shram[dot]suvidha[dot]gov[dot]in)

• Register as an “Employer”

• Create a User ID and Password using mobile number and email

🔹 Step 2: Fill the Common ESI/EPF Registration Form

• Choose “Apply for New Registration”

• Select either ESI, EPF, or both

• Fill business details, contact information, nature of work, and date of commencement

🔹 Step 3: Add Employee Information

• Add all current employee details including wages, joining dates, and Aadhaar numbers

• Confirm number of employees eligible under ESI and EPF

🔹 Step 4: Upload Required Documents

• Upload scanned copies of all required documents (PAN, address proof, license, bank proof, etc.)

🔹 Step 5: Submit and Verify

• Use DSC (Digital Signature Certificate) to sign and submit the application

• After verification, the system will auto-generate:

  • 17-digit ESIC Registration Number

  • EPF Establishment ID

You’ll receive confirmation and login credentials on your registered email.

5. Post-Registration Compliance

📌 For ESI:

• Contribution Rate:

  • Employer: 3.25% of gross wages

  • Employee: 0.75% of gross wages

• Payment Due: 15th of the following month

• Returns Filing:

  • Half-yearly returns (April–Sept and Oct–March)

  • Annual information updates

📌 For EPF:

• Contribution Rate:

  • Employer: 12% of basic wages

  • Employee: 12% of basic wages

• Monthly Filing:

  • File Electronic Challan-cum-Return (ECR) every month

• Generate UAN (Universal Account Number) for every new employee

• Link employee Aadhaar, PAN, and bank details for seamless PF services

6. Important Points for Mumbai Employers

• Use the correct region code while registering (Mumbai comes under Maharashtra regional offices)

• Employers must maintain updated employee records and salary data

• Display ESI and EPF registration numbers at the office premises

• Ensure timely payments to avoid penalties and legal consequences

7. Penalties for Non-Compliance

• For ESI:

  • Late payment: 12% annual interest

  • Damages: Up to 25% of the amount due

  • Prosecution in severe cases

• For EPF:

  • Delay in contributions: 12% annual interest + additional damages

  • Possible imprisonment or heavy fines for willful default

8. How Long Does the Registration Take?

• Typically completed within 7 to 10 working days after document submission, provided there are no discrepancies.

9. Voluntary Registration (Optional Cases)

If your establishment has fewer employees but you want to offer social security benefits voluntarily:

• You can apply for voluntary coverage under both ESI and EPF.

• This improves employee retention and trust and is seen as a progressive HR practice.

Conclusion

ESI and EPF registrations are crucial legal obligations for employers in Mumbai, ensuring that employees are protected financially and medically. With the centralized Shram Suvidha Portal, the registration process has become seamless and digital. Timely registration, contribution, and compliance not only avoid legal trouble but also enhance your company's credibility and employee satisfaction.