Summary: This Standard Operating Procedure (SOP) outlines the process for providing Employees’ Provident Fund Organization (EPFO) and Employees’ State Insurance Corporation (ESIC) compliance services. The procedure begins with a client onboarding phase, where a firm’s relationship executive and compliance associate collect essential documents like the organization’s structure, payroll data, and identity proofs for registration. Once registered, a monthly workflow is followed from the 1st to the 15th of each month, where payroll data is collected, contributions are calculated (12% for PF and 3.25%/0.75% for ESI), and challans are shared with the client for approval. Subsequently, the data is uploaded to the respective portals, and payments are made, followed by the filing of monthly returns. The SOP also details quarterly and half-yearly compliance requirements, such as the ESIC Half-Yearly Form 5. For documentation, a digital folder is maintained for each client to store monthly proofs, status reports, and other relevant records. The protocol includes a clear plan for handling late payments, defaults, and inspections by authorities. This structured process ensures accurate and timely compliance with applicable labor laws.
Standard Operating Procedure – For PF & ESI Compliance Services
Scope: EPFO (Employees’ Provident Fund Organization) and ESIC compliance under applicable laws
1.Client Onboarding
| Step | Activity | Responsibility | Documents Required |
| 1.1 | Understand client structure and employee count | Client Relationship Executive | – Organization chart– Payroll summary |
| 1.2 | Collect basic documents for PF & ESI registration | Compliance Associate | – PAN, GST, Address proof– Director/Owner KYC |
| 1.3 | Check PF/ESI applicability (mandatory/voluntary) | Compliance Manager | – Review labour law applicability |
| 1.4 | Execute Engagement Letter and NDA | Partner/Manager | – Signed engagement letter |
| 1.5 | Obtain login credentials for EPFO & ESIC portals | Client + Compliance | – Authorization letter to reset password |
2. PF & ESI Registration (if not already done)
| Step | Platform | Action |
| 2.1 | EPFO Portal | Register employer at https://unifiedportal-epfo.epfindia.gov.in/ |
| 2.2 | ESIC Portal | Register employer at https://www.esic.in/ |
| 2.3 | Post-registration | Share registration details (Establishment ID, Code, etc.) with client |
Timeline: Complete within 3–5 working days after document collection.
3. Monthly Processing Workflow
Timeline: 1st – 15th of every month
| Date Range | Activity | Responsible |
| 1st–3rd | Collect payroll data for the previous month | Client/Payroll Executive |
| 4th–5th | Verify salary sheets & eligible employees | Compliance Associate |
| 6th–8th | Calculate PF (12% employer/employee) & ESI (3.25%/0.75%) | Payroll Analyst |
| 8th–10th | Share challans for PF & ESI with client for approval | Compliance Manager |
| 10th–12th | Upload ECR (PF) & ESIC data on portals | Compliance Executive |
| 13th–15th | Make payment via client’s net banking/authorized account | Client / CA Firm (if authorized) |
| 15th | Confirm payment, file monthly return | Compliance Team |
Maintain logs for each step via internal tracker (Excel or task management software).
4. Quarterly & Half-Yearly Compliance
| Type | Compliance | Due Date |
| ESIC Half-Yearly | Form 5 Return of Contribution | 11th May and 11th November |
| PF | Annual returns not applicable post-UAN & ECR. Maintain monthly data |
5. Reporting & Documentation
| What | Frequency | Format |
| Monthly Payment Proofs | Monthly | PF & ESI challans |
| Compliance Status Report | Monthly/Quarterly | Summary email/PDF |
| Employee Master Register | Quarterly | Excel |
| Audit Support (if required) | As per need | Document compilation |
Maintain client-wise digital folders for:
- Employee-wise PF/ESI eligibility records
- Monthly challans and filings
- Email trails and payment approvals
6. Late Payment & Default Handling
| Scenario | Action Plan |
| Delay from client in payroll data | Send reminder on 3rd, escalate by 5th |
| Missed payment deadline | File after due date with interest and damages |
| Inspection/notice from authorities | Coordinate reply; prepare documentary evidence |
7. Communication Protocol
| Type | Mode | Frequency |
| Payroll data request | Email / Shared drive | 1st of every month |
| Filing confirmation | Email with challan/acknowledgment | By 15th |
| Compliance calendar | Shared once at beginning of FY | Annual |
8. Internal Checklist (QC)
Before submitting filings:
- Match PF/ESI contribution with payroll sheet
- Verify UAN/ESIC numbers for new joinees
- Confirm arrears/salary adjustments are reflected
Cross-check previous month carryovers, if any
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