ESI and PF in India
Employees’ State Insurance (ESI) and Provident Fund (PF) are key social security schemes in India, ensuring employee welfare and financial security.
ESI (Employees’ State Insurance) :
- Governed by the ESI Act, 1948.
- Provides medical, disability, maternity, and unemployment benefits.
- Mandatory for establishments with 10 or more employees earning up to ₹21,000/month.
PF (Provident Fund)
- Governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
- Offers retirement savings by deducting 12% of an employee's basic salary, matched by the employer.
- Mandatory for establishments with 20 or more employees.
- Both schemes promote employee welfare and long-term financial stability.