We have grown to 22 employees. Are PF and ESI now compulsory, and what do they cost us?

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.