Logo
logo

Statutory EPF and ESIC Compliance for Dhar’s Pithampur Auto Hub, Pharma & SEZ Clusters

City Snap

Dhar district represents the highest PF & ESIC enforcement intensity in MP due to Pithampur’s auto concentration, DMIC investments and large-scale contract labour deployment.

Dhar’s Auto Hub & PDMIR Compliance Risks

Global manufacturing standards and dense contractor networks elevate Principal Employer exposure.

EEC-2025 Golden Window (Auto & Pharma)

Employers can enroll workers missed between 2017–2025 with only a ₹100 penalty, offering the final opportunity to clean legacy defaults before AI-driven Labour Code audits begin.

ESIC Amnesty Scheme 2025 (Litigation Exit)

Pending Section 75/82/85 cases in Pithampur Sectors 1–3 can be settled by paying contribution + interest. Damages are 100% waived for running units.

Principal Employer Liability (Global OEMs)

RO Indore uses CAIU portal and gate-pass reconciliation to detect contractor under-reporting. Any mismatch triggers immediate 7A proceedings.

Key Economic Zones & Statutory Authority

Pithampur Industrial Area (Sectors 1–7)

Automobiles, engineering, pharma and Tier-1 to Tier-3 vendor clusters.

PDMIR & SEZs

High-value manufacturing, export-oriented units and compliance-heavy SEZ environments.

Hazardous Chemical & Plating Units

Mandatory ESIC coverage due to chemical and assembly-line hazards.

Statutory Authority

Regional Office (RO) Indore and ESIC Sub-Regional Office Indore.

Core EPF & ESIC Compliance Challenges in Dhar

Supply Chain Regularization (EEC-2025)

Tier-2 and Tier-3 vendors must use the ₹100 penalty window before April 2026. Post-campaign, RO Indore will launch GST/MSME-linked enforcement drives.

New Wage Code – 50% Rule

Payrolls where Basic + DA is below 50% of CTC are auto-flagged under the new AI audit framework.

Hazard Liability in Auto & Pharma

100% ESIC coverage is mandatory. Any lapse exposes the Principal Employer to full medical and disability compensation liability.

Frequently Asked Questions

Pithampur and the entire Dhar district are governed by the Regional Office (RO) Indore, supported by the ESIC Regional Office Indore.

Yes. The scheme applies to SEZ and non-SEZ units alike for disputes pending as of March 31, 2025, allowing settlement with full waiver of damages.

It allows registration of left-out employees from the past eight years with a nominal ₹100 penalty and waiver of the employee share if not deducted earlier.

Yes. Units involved in hazardous processes common in auto and engineering must comply with ESIC from the first employee under the Social Security Code.