EPF any establishment that has 20 or more employees and is a factory working in any industry. Employees with a monthly maximum base wage of Rs. 15000 plus any applicable dearness allowance. Only if both the employer and employee are willing to participate in EPF registration are establishments with fewer than 20 employees eligible.
ESI each and every establishment that is a covered unit. Industry, a hospital, a restaurant, a shop, a theatre, a pharmacy, a hotel, etc. are examples of covered units. Employee strength in ESI must be 10 or greater. The upper limit on employee pay for ESI coverage is 21000 Rupees.
Employers and Employee contribution for EPF
Employee and employer contributions will be equal. Employer and employee each contribute 12% of the base compensation. 8.33% of the employer's part of the contribution goes to the employer's pension plan, and the remaining 3.67% goes to the EPF plan.
10% of the base pay is the employer's contribution in the event of a small firm.
Employer and Employee contribution for ESI
Different shares of ESI are contributed by the employer and employee. The employee's portion is 0.75% of the wages due, while the employer's contribution is 3.25%. A total of 4% is paid into ESI.
