Labour Code Compliance, EPF & ESIC Registration
Quick answer: India's labour law was restructured into four Labour Codes on 21 November 2025 (final Central Rules notified May 2026). We handle EPF registration (20+ employees), ESIC registration (10+ employees, ₹21,000 wage ceiling), and factory/contract-labour licensing under the new OSH Code thresholds — correctly, not under the old superseded rules.
What actually changed, and what didn't
| Area | Old threshold/rule | Current (OSH Code / Codes) |
|---|---|---|
| Factory licence (with power) | 10+ workers | 20+ workers |
| Factory licence (without power) | 20+ workers | 40+ workers |
| Contract labour licence | Contractor needs licence at 20+ workers | 50+ workers; principal employer's single OSH registration covers contract labour engagement |
| EPF coverage | 20+ employees, ₹15,000 wage ceiling | Unchanged — 20+ employees, ₹15,000 ceiling |
| ESIC coverage | 10+ employees (notified areas), ₹21,000 ceiling | ₹21,000 ceiling unchanged; "notified area" restriction removed on paper under the Social Security Code |
| Wage definition | Basic + DA could be structured low | Basic + DA must be at least 50% of total remuneration — raises the PF/ESI/gratuity base |
| Licence validity | Typically 1-5 years, state-dependent | Up to 5 years under the OSH Code, with deemed approval if authorities miss prescribed timelines |
The ₹21,000 ESIC ceiling and ₹15,000 EPF ceiling have not changed despite widely-shared claims online — we confirm current figures against the actual notification before advising a client, not against what's trending.
EPFO establishment registration
Online registration via the EPFO Unified Portal using PAN/incorporation details and a digital signature. Once registered, ongoing employer obligations include generating and linking a UAN for every new joinee, seeding and verifying Aadhaar/bank KYC, filing the monthly Electronic Challan-cum-Return (ECR) by the 15th, and processing exit dates correctly. The new 50% basic-and-DA wage rule is the most common query we're handling in 2026 — it changes the contribution base even where headcount and salary haven't changed.
ESIC establishment registration
Online registration on the ESIC portal; every covered employee must be registered within 10 days of joining, with monthly contributions (0.75% employee + 3.25% employer) due by the 15th. We handle registration, monthly filing, and the compliance review that catches whether your current wage structuring actually keeps you under or over the ₹21,000 threshold correctly.
Factory and establishment registration under the OSH Code
Units crossing the 20/40-worker threshold need factory registration; units with 10+ workers below that threshold still need OSH Code establishment registration. The Code allows a single combined licence covering factory, contract labour and beedi-establishment matters, valid up to 5 years, with a 30-day deemed-approval clock on plan/expansion permission. State delivery channels vary — Delhi's Labour Department portal, UP's Nivesh Mitra 3.0, Haryana's HEPC/Invest Haryana window, and Bihar's Single Window Clearance System are the relevant routes, though plan approval and stability certificates remain physical-engineering steps everywhere.
Shop & Establishment Act registration
This remains a state-law registration — it was not replaced by the central Labour Codes. Delhi, UP, Haryana (under the Punjab Shops & Commercial Establishments Act as applicable) and Bihar each have their own Act and registration process. We file this correctly under your specific state's current rules rather than assuming a one-size answer across NCR.
Talk to us before you file anything
Frequently asked questions
Are the Factories Act and Contract Labour Act still in force?
No — both are subsumed in the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, which took effect on 21 November 2025 along with the other three Labour Codes. Final Central Rules were notified on 8-9 May 2026. State rules determine the actual forms and procedures and are still being finalised in several states — we check your state's current status before filing anything.
At how many employees do I need EPF and ESIC?
EPF applies at 20 or more employees, with mandatory coverage for employees earning up to ₹15,000/month. ESIC applies at 10 or more employees (20 in some states) for employees earning up to ₹21,000/month gross (₹25,000 for persons with disability).
Has the ESIC wage ceiling increased to ₹30,000?
No. The ₹21,000 ceiling remains in force under the existing notification. A ₹30,000 ceiling has been discussed as a proposal but has not been notified — any site or advisor telling you otherwise is quoting an unconfirmed figure.
Do I need a factory licence for 15 workers using power?
Not under the current OSH Code thresholds, which set factory licensing at 20+ workers with power (40+ without). You still need OSH Code establishment registration at 10+ workers and must follow applicable safety provisions regardless.
Does my contractor need a separate labour licence?
Only if they deploy 50 or more contract workers — the threshold was raised from 20. Your own single OSH Code establishment registration already covers your engagement of contract labour; you no longer need a separate CLRA registration as principal employer.
What changed in how salary is structured for PF/ESI purposes?
Under the Code on Wages, basic pay plus dearness allowance must now be at least 50% of total remuneration. This raises the base on which PF, ESI and gratuity are calculated for many employers who had structured salaries with a large non-basic component — it's the single most common compliance gap we're finding in 2026.