ESI (Employees' State Insurance) and PF (Provident Fund) are two important social security schemes in India, aimed at providing financial protection to employees. Here's an overview:
What is ESI?
ESI is a self-financing social security and health insurance scheme for
Indian workers, managed by the Employees' State Insurance Corporation
(ESIC).
1. Medical Benefits: Free medical care for employees and their families.
2. Sickness Benefits: Cash compensation for employees during sickness
or injury.
3. Maternity Benefits: Financial assistance for pregnant women.
4. Disability Benefits: Compensation for employees with disabilities.
5. Dependent Benefits: Financial support for dependents in case of an
employee's death.
1. Employee Eligibility: Employees earning ₹21,000 or less per month are
eligible.
2. Employer Eligibility: Establishments with 10 or more employees are
required to register for ESI.
What is PF?
PF is a retirement savings scheme for employees in India, managed by the
Employees' Provident Fund Organisation (EPFO).
1. Retirement Savings: Employees contribute 12% of their salary, and
employers contribute 12% (8.33% towards EPF and 3.67% towards EPS).
2. Interest Earnings: Employees earn interest on their PF contributions.
3. Loan Facilities: Employees can avail loans against their PF balance.
4. Withdrawal Benefits: Employees can withdraw their PF balance after
retirement or resignation.
1. Employee Eligibility: Employees earning ₹15,000 or less per month are
eligible.
2. Employer Eligibility: Establishments with 20 or more employees are
required to register for PF.
1. Purpose: ESI focuses on health insurance and social security, while PF
focuses on retirement savings.
2. Eligibility: ESI is applicable to employees earning ₹21,000 or less per
month, while PF is applicable to employees earning ₹15,000 or less per
month.
3. Contribution Rates: ESI contribution rates are 4.75% for employees and
4.75% for employers, while PF contribution rates are 12% for employees
and 12% for employers.
