The question
1 answer
Practising chartered accountants at ERPCA · 6 Aug 2026
In short
Both, and the clock started the month you reached 20.
Provident fund: the EPF Act applies once an establishment has 20 employees; register on the EPFO portal within a month. Contribution is 12% of basic plus DA from the employee and 12% from you (8.33% of that goes to the pension scheme on wages up to ₹15,000, the rest to EPF). Membership is compulsory for anyone earning basic plus DA up to ₹15,000; employees above that can be enrolled on their option, and anyone who was already a member in a previous job continues. Pay by the 15th of the following month through the ECR.
ESI: applies at 10 employees, so you are already in. It covers employees earning gross wages up to ₹21,000 a month (₹25,000 for persons with disability): 0.75% from the employee, 3.25% from you, due by the 15th. Your four support staff are covered; the rest are not.
Labour Codes: the four Codes came into force on 21 November 2025. The one that affects your payroll immediately is the uniform definition of wages: basic plus DA must be at least 50% of total remuneration, so a structure with a small basic and large allowances has to be reworked, which raises PF and gratuity cost. Uttar Pradesh does not levy professional tax, so that line is nil for you.
Next step
Register for both this month, restructure CTC letters to the 50% wage rule, and run one parallel payroll before the first contribution is due.
General guidance on the facts given, not an engagement. Law as on the date of the answer.
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