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Statutory EPF and ESIC Compliance for Indore’s Pithampur SEZ, Pharma & Manufacturing Clusters

City Snap

With EEC-2025 and New Labour Codes effective from Nov 21, 2025, Indore faces one of the most aggressive EPF & ESIC enforcement environments in Central India.

Indore’s Commercial & Pithampur PE Compliance Risks

High-volume recruitment, SEZ operations and contract labour concentration drive enforcement.

EEC-2025 Voluntary Disclosure Window

Employers can regularize excluded workers (July 2017–Oct 2025) with a nominal ₹100 per year penalty until April 30, 2026, before full 7A enforcement begins.

Principal Employer Liability (Pithampur & SEZ)

RO Indore uses CAIU portal cross-verification to detect PF evasion by vendors supplying manpower to MNCs and pharma plants.

ESIC Hazard Exposure (Pharma & Chemicals)

100% ESIC coverage is mandatory. Non-compliance exposes Principal Employers to lifelong disability and accident compensation claims.

Key Economic Zones & Statutory Authority

Indore SEZ (Phases I & II)

Pharma, engineering, plastics and textiles with export-linked labour compliance.

Sanwer Road & Laxmi Bai Nagar

Food processing and MSMEs with headcount threshold and coverage risks.

Super Corridor & Crystal IT Park

IT/ITeS units under scrutiny for allowance-heavy salary structures.

Statutory Authority

Dedicated Regional Office (RO) Indore and ESIC Regional Office Indore.

Core EPF & ESIC Compliance Challenges in Indore

New Labour Code Wage Definition

Basic + DA must be at least 50% of CTC. AI validations now flag suppression attempts automatically.

Contract Labour PF Liability

SEZ vendors for housekeeping, security and production are audited for workforce splitting.

ESIC Infrastructure Transition

With ESIC hospital expansion in Pithampur, audits demand 100% contract labour coverage.

Frequently Asked Questions

Employers can register excluded workers from July 2017 to Oct 2025 by paying only ₹100 per year as penal charges, provided registration is completed by April 30, 2026.

Yes. SEZ operational approvals use the SEZ Online portal, but PF and ESIC contributions must still be deposited through their respective statutory portals.

Although Pithampur is in Dhar district, EPF & ESIC jurisdiction is handled by Regional Office (RO) Indore.

Yes. Eligible employers can receive up to ₹3,000 per month per employee, and newly employed youth can get incentives up to ₹15,000.