Provident Fund or PF is a compulsory contributory fund for the future of employees. Provident Fund is required to provide wider benefits to the workers on the completion of their employment. It is a social security fund created for the purpose of providing financial security and stability during retirement. Every specified factory or establishment in which 20 or more persons are employed must register under the Employment Provident Fund. With the amendment in the rule of EPF, the limit of the minimum employee is 10 employees. Compliance Checklist under the EPF Act contains 12 items that the company must fulfill in order to be compliant with the law.
Employees State Insurance Corporation (ESIC) is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of ESI Scheme. The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the scheme against financial distress arising out of events of sickness, disablement or death due to employment injuries. The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries monthly wage does not exceed Rs 21,000 are covered under the scheme. Whether the employer has employed 10 or more employees, all employees employed by the employer, agnostic of the salary are reckoned.