EPF & ESI

EPF & ESI

Employees Provident Fund and Employees State Insurance are two social security scheme availably to the working class in India. These are the central government schemes, comes under the jurisdiction of The Ministry of Labour and Employment. Both the schemes introduced with the objective to improve the working class condition. It’s the employer’s duty to register under both the schemes.

Employees Provident Fund is a saving fund that accumulates during the employment tenure of an employee. Its objective is to manage the provident fund of the government and private sector employees, helping them financially on their retirement.

Employees State Insurance is a self- financing social security and health insurance scheme offering medical and disability benefits to the Indian workers. It aims to provide medical and cash benefits to the employees and their families through their large network of offices, hospitals and dispensaries throughout the country. EPF and ESI focus on undertaking the activities that ultimately provide social security to the members of the fund.

  • Who needs to register for EPF and ESI ?

    EPF any establishment which is a factory engaged in any industry, with 20 or more employees. Employees having basic salary max up to Rupees 15000 + dearness allowance (if any) of every month. Establishments having employees less than 20 can also register under EPF only if both employer and employee are willing to do so.
    ESI all the establishments which are covered units. Covered units include industry, hospital, restaurant, shop, theatre, pharmacy, hotel etc. In ESI employee strength shall be 10 or more. The wage limit of employees is maximum up to Rupees 21000 for ESI coverage.