PF, ESIC not applicable letter for Proprietor ship Firm

Hi Rajan! For a Proprietorship firm with only two employees, here’s what you should know about PF and ESIC applicability and the “Not Applicable” letters:

PF Applicability:

• Provident Fund (EPF) is applicable if your establishment has 20 or more employees.

• Since you have only 2 employees, PF is not mandatory.

• You can request a “PF Not Applicable” certificate/letter from the Regional Provident Fund Office by submitting a written request with your firm details and employee count.

ESIC Applicability:

• ESIC applies if your firm has 10 or more employees (for factories) or 20 or more (for other establishments), and your employees' monthly wages are below Rs. 21,000.

• With only 2 employees, ESIC is not applicable.

• You can obtain a “ESIC Not Applicable” letter by writing to the nearest ESIC office or on their portal, stating your employee count and business details.

What to do:

• Draft a formal letter requesting the “Not Applicable” certificates.

• Submit it to the respective authorities (EPFO for PF, ESIC office for ESIC).

• Keep your employee records handy if they ask for proof.