Published by: OurTaxPartner.com | Trusted Experts in EPF & ESI Registration and Compliance
Introduction
In India, two key social security schemes — the Employees’ State Insurance (ESI) and the Employees’ Provident Fund (EPF) — serve as a protective foundation for salaried workers. These schemes provide crucial financial, medical, and retirement benefits and are backed by legislation to ensure all eligible employees are covered.
Unfortunately, many employees are unaware of their coverage rights and benefits under ESI and EPF. This lack of awareness often leads to lost opportunities for medical assistance, retirement savings, insurance, and legal protection. In this blog, we will break down employee coverage under both schemes and explain how you can safeguard and assert your rights. For assistance with enrollment, claims, and employer compliance, OurTaxPartner.com is your trusted partner.
What Is EPF and Who Is Covered?
The Employees’ Provident Fund (EPF) is a retirement savings plan regulated by the Employees’ Provident Fund Organisation (EPFO). Under the EPF scheme:
- ✔ It is mandatory for establishments with 20 or more employees.
- ✔ All employees earning basic + DA up to ₹15,000/month are mandatorily covered.
- ✔ Employees earning more than ₹15,000/month can be included voluntarily with mutual consent.
- ✔ Both employer and employee contribute 12% of wages to the fund.
Your Rights Under EPF
- ✔ You are entitled to a UAN (Universal Account Number) which allows you to manage your EPF account online.
- ✔ You have the right to view your EPF balance, download passbooks, and track interest earned.
- ✔ You can make partial withdrawals for specific life events such as housing, marriage, education, or medical emergencies.
- ✔ You have the right to transfer your EPF balance when switching jobs.
- ✔ After retirement or two months of unemployment, you can withdraw the full EPF amount.
What Is ESI and Who Is Covered?
The Employees’ State Insurance (ESI) scheme is a health and income protection scheme managed by the Employees’ State Insurance Corporation (ESIC). It provides medical benefits, maternity support, and cash compensation during disability, illness, and death.
- ✔ Mandatory for establishments with 10 or more employees (20 in some states).
- ✔ Applicable to employees earning ₹21,000/month or less (₹25,000 for disabled employees).
- ✔ Employer contributes 3.25% and employee contributes 0.75% of gross wages.
Your Rights Under ESI
- ✔ Right to free medical treatment at ESIC hospitals and dispensaries.
- ✔ Cash benefits during sickness, maternity, and disability.
- ✔ Funeral expenses and dependents’ pension in case of work-related death.
- ✔ Vocational rehabilitation in case of permanent disability.
- ✔ Access to Pehchan Card and Insurance Number for identification and benefits.
How to Know If You Are Covered
Check With Your Employer:
- ✔ Ask your HR or payroll team if the organization is registered under EPFO/ESIC.
- ✔ Confirm whether your salary and designation fall within the eligible coverage criteria.
- ✔ Request your UAN (for EPF) or Pehchan card (for ESI) if you are eligible.
Self-Verification Methods:
- ✔ Visit the EPFO portal to check UAN status: unifiedportal-mem.epfindia.gov.in
- ✔ Check salary slip for EPF and ESI deductions.
- ✔ Use the UMANG app to link Aadhaar and view EPF balance.
- ✔ Contact your nearest ESIC branch with your insurance number for status and benefits.
Common Issues Faced by Employees
- ✖ Employers deduct EPF/ESI but do not deposit it with the authorities.
- ✖ Employees are excluded despite being eligible.
- ✖ Lack of awareness regarding entitlements and usage of benefits.
- ✖ Incorrect employee details in EPF/ESI records.
What You Can Do
- ✔ File a grievance on the EPFO/ESIC portal.
- ✔ Reach out to local labor commissioners or regional EPFO/ESIC offices.
- ✔ Consult with a compliance expert at OurTaxPartner.com for resolution support.
Why EPF & ESI Matter for You
- ✔ EPF ensures a secure retirement, provides tax benefits, and financial support in emergencies.
- ✔ ESI safeguards your health and income during illness, maternity, or accidents.
- ✔ Both schemes build long-term financial security and peace of mind.
How OurTaxPartner.com Can Help
- ✔ EPF & ESI registration for your employer or startup
- ✔ UAN and IP number generation and linking
- ✔ Assistance with grievances and claim filing
- ✔ Monthly return filing and payroll compliance
- ✔ Correction of employee records and account transfers
Click here to ensure you are fully covered and receiving your rights under EPF & ESI
Frequently Asked Questions (FAQs)
Is EPF mandatory for all salaried employees?
EPF is mandatory for employees earning basic wages up to ₹15,000/month in organizations with 20 or more workers. However, voluntary coverage is allowed above this threshold.
Can an employer deny ESI coverage to eligible employees?
No. If the company and employee fall under the ESI criteria, the employer is legally bound to register and contribute.
Can employees opt out of EPF?
Only at the time of joining and if the salary exceeds ₹15,000/month, employees can choose not to be covered—if not already a PF member. Otherwise, it is mandatory.
How can I check if my contributions are being deposited?
Check your EPF passbook on the EPFO portal or UMANG app. For ESI, request the status from your ESIC dispensary or local branch.
Conclusion
Understanding your rights under the EPF and ESI schemes empowers you to take control of your financial and health security. These benefits are not favors—they are your legal entitlements. Whether you’re starting your career or are an experienced professional, make sure you are covered, aware, and protected.
Need help confirming your coverage or fixing your records? Connect with OurTaxPartner.com today for expert support in managing your EPF and ESI benefits.
Quick Link: Know Your Rights – Secure Your EPF & ESI Coverage Now
