ESI stands for Employee State Insurance is managed/regulated by the Employee State Insurance Corporation and EPF stands for Employee Provident Fund is managed/regulated by the Employee Provident Fund Organisation. These two schemes are the central government schemes which are benefiting to n number of employees/workers of the multiple organisations.
ESI:
This scheme is for Indian Workers. The workers are provided with a huge variety of medical, monetary and other benefits including employee’s dependants also.
Any Entity having more than 10 employees (in some states it is 20 employees) who have a maximum total monthly salary of Rs. 21,000/- has to mandatorily register itself with the ESIC, if any Entity want to take voluntary registration than he can registered, even if employee is less than 10.
Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Due date for the payment of the contribution to the government is within 15 days of the last day of the calendar month in which the contributions are due.
EPF:
EPF registration for those establishments which have employee strength of 20 or more, who have a maximum monthly salary (salary here is basic plus dearness allowance and retaining allowance) of Rs. 15,000/-.
The contribution paid by the employer is 12% of salary. An equal contribution is payable by the employee also. In the case of establishments which employ less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is limited to 10%.
Due date for the payment of the contribution to the government is within 15 days of the last day of the calendar month in which the contributions are due.
