Calculate statutory EPF and ESIC contributions for your workforce — employer and employee share, with eligibility threshold checks.
EPF and ESIC non-compliance carries some of the steepest penalties in Indian labour law — EPF default attracts interest at 12% per annum plus damages up to 100% of the arrear amount under Section 14B, while ESIC default attracts 12% annual interest plus damages up to 25% under Regulation 31A. Construction companies are particularly exposed because of high labour turnover and the common misconception that daily-wage or contract labour is exempt — it is not; EPF/ESIC coverage is based on wage level and establishment coverage, not employment type.
A contractor with 50 workers at Rs 15,000/month who fails to register for EPF for 12 months faces: back-contribution of employer share (~12% x 15,000 x 50 x 12 = Rs 10.8 lakh) PLUS employee share recovery PLUS 12% annual interest PLUS damages up to 100% of the arrear under Section 14B — a compliance gap that can multiply into a liability several times the original contribution amount.
Register for EPF and ESIC codes at the time of establishment registration, not after the first labour engagement. Maintain a wage register that clearly separates Basic+DA (the EPF base) from other allowances, since using gross wage incorrectly for the EPF base either over- or under-deducts.
HR teams at compliant construction companies maintain a wage register with Basic+DA separated from gross wage from day one, run EPF/ESIC applicability checks automatically at each new worker onboarding, and reconcile monthly contribution deposits against the wage register before filing returns.
Rebota's HR & Payroll module (in active development) will compute EPF and ESIC contributions automatically from the wage register, flag applicability thresholds per worker, and track deposit and filing deadlines — reducing the compliance gap that creates the largest statutory liability risk for construction employers.
