PF ESIC Compliances
Provident Fund (PF)
Provident Fund (PF) is a social security scheme designed to provide financial security and stability to employees during retirement.
Employee Contribution: A portion of the employee's salary (12% of the basic pay) is deducted and contributed towards the PF. Employer Contribution: Employers also contribute an equal amount (12%) on behalf of the employee, and this total contribution is deposited into the employee's PF account.
The EPFO is the regulatory body overseeing PF in India. It manages the accounts of employees and ensures compliance with PF regulations.
Employees can withdraw the accumulated PF amount upon retirement, resignation, or after a certain period of continuous unemployment.
The primary purpose of the PF is to create a financial corpus for employees, ensuring a source of income after retirement.
Employee State Insurance Corporation (ESIC)
Employee State Insurance Corporation (ESIC) is a self-financing social security and health insurance scheme for Indian workers.
Employee Contribution: Employees contribute 1.75% of their wages towards ESIC. Employer Contribution: Employers contribute 4.75% of the employee's wages.
ESIC provides medical benefits to employees and their dependents, including hospitalization, maternity, and sickness benefits.
In addition to medical benefits, ESIC provides cash benefits during periods of sickness, maternity, or temporary disablement.
The Employees' State Insurance Act, 1948, is the legislative framework governing ESIC. It outlines the rights and responsibilities of both employers and employees under the scheme.
ESIC covers employees earning a specified wage threshold and working in certain categories of establishments. The scheme ensures that employees have access to medical facilities and financial support during health-related contingencies.
PF is regulated by the Employees’ Provident Fund Organization (EPFO).
ESIC is governed by the Employee State Insurance Corporation.
In summary, while PF aims at providing financial security post-employment, ESIC focuses on ensuring health and medical benefits for employees and their families during their active working years. Both schemes contribute to the overall well-being and social security of the Indian workforce.
EPF and ESIC Monthly Compliance
PF and ESIC Requirements
