PF and ESI: Overview#
EPF (Employees' Provident Fund)#
- Statutory savings scheme for employees
- Both employer and employee contribute
- Social security benefit for employees
ESI (Employees' State Insurance)#
- Health insurance scheme
- Medical benefits for employees
- Maternity and disability benefits
PF Registration#
Applicability#
- 20 or more employees
- Any establishment with EPFO jurisdiction
- Applicable to all establishments in some states
Registration Process#
- Apply through EPFO portal
- Submit establishment details
- Get UIN (Unique Identification Number)
- Create PF account for each employee
Contributions#
| Component | Employer | Employee |
|---|---|---|
| EPF | 12% of wages | 12% of wages |
| EPS | 8.33% of wages | - |
Wages for PF Calculation#
- Basic wages
- Dearness allowance
- Retaining allowance
- Conveyance allowance
ESI Registration#
Applicability#
- 10 or more employees
- Monthly wages up to ₹21,000
Registration Process#
- Apply through ESIC portal
- Submit employer details
- Get IP registration
- All employees register as IPs
Contributions#
| Component | Employer | Employee |
|---|---|---|
| ESI | 3.25% of wages | 0.75% of wages |
Benefits#
- Medical benefits
- Sickness benefit
- Maternity benefit
- Dependent benefit
- Disability benefit
Compliance#
- Monthly returns
- Annual returns
- Contribution payments
- Updating employee details