At what employee count does PF and ESI registration become mandatory in India?

Once an establishment crosses 20 employees, PF registration under the Employees' Provident Fund Act becomes mandatory, requiring a 12% employer and 12% employee contribution (of basic wages, subject to a wage ceiling) into the employee's PF account. Registration must happen within the statutory window after crossing the threshold, and coverage applies to all eligible employees from that point, including those hired before the threshold was crossed if they meet the eligibility criteria.

ESI registration is triggered separately at 10 or more employees (20 in a few states) where covered employees earn below a specified wage ceiling, and funds medical care, sickness, and disability benefits through employer and employee contributions. Both PF and ESI have separate registration processes, contribution rates, and monthly filing obligations, and missing the registration window after crossing the threshold can result in penalties calculated from the date the obligation arose, not the date of actual registration — tracking headcount against both thresholds as part of routine HR compliance avoids this exposure.