Guide2026-04-28

Restaurant EPF & ESI: When Is Registration Mandatory & How Much Does It Cost?

Running a restaurant in India means staying compliant with labor laws, and EPF and ESI registrations are non-negotiable once you hit certain thresholds. Here's what you need to know to avoid penalties and keep your staff happy.

When Is Registration Mandatory?

EPF registration is required when you have 20 or more employees (10 or more in some states). ESI kicks in at 10 or more employees. Both apply whether they're kitchen staff, servers, or delivery personnel earning up to 15,000/month for EPF and 21,000/month for ESI.

What Does It Cost?

For EPF, you contribute 12% of basic wages and the employee also pays 12%. ESI costs 3.25% from the employer and 0.75% from the employee. So for a staff member earning 15,000, you'll pay around 1,800/month for EPF and 487.50 for ESI. Registration itself is free, but non-compliance can lead to fines starting at 5,000.

Keep digital records of all staff attendance and wages. Tools like DineCard (dinecard.in) can help you digitize operations starting at just 99/month, making compliance tracking easier alongside modern QR menus.

Create a QR code menu for your restaurant in 5 minutes with DineCard.

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