Published by: PEAK Business Consultancy Services | Website: www.ourtaxpartner.com
Table of Contents
- Introduction
- 1. What is ESI (Employees’ State Insurance)?
- 2. What is EPF (Employees’ Provident Fund)?
- 3. Key Benefits of ESI for Employees in Kerala
- 4. Key Benefits of EPF for Employees in Kerala
- 5. Employee Contributions Explained
- 6. What is the ESI Pehchan Card?
- 7. How to Check and Withdraw EPF Funds
- 8. What Happens When You Change Jobs?
- 9. Where to File ESI/EPF Grievances in Kerala
- Conclusion
Introduction
If you’re an employee working in Kerala, it’s crucial to understand your social security rights under two major schemes—Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF). These schemes not only offer financial security during medical emergencies and retirement but also serve as a foundation for a secure work environment. This guide explains everything you should know about ESI and EPF as a working professional in Kerala.
1. What is ESI (Employees’ State Insurance)?
ESI is a social security scheme managed by the Employees’ State Insurance Corporation (ESIC), under the Ministry of Labour and Employment. It provides medical, cash, maternity, disability, and dependent benefits to insured employees and their families.
- Applicability: Establishments with 10 or more employees
- Eligibility: Employees earning gross wages up to ₹21,000/month
- Contribution: 0.75% of gross salary (employee) + 3.25% (employer)
2. What is EPF (Employees’ Provident Fund)?
EPF is a retirement benefit scheme managed by the Employees’ Provident Fund Organisation (EPFO). It helps employees save a portion of their salary every month, which can be withdrawn upon retirement or certain emergencies.
- Applicability: Establishments with 20 or more employees
- Eligibility: Mandatory for employees earning up to ₹15,000/month (voluntary beyond that)
- Contribution: 12% of basic wages (employee) + 12% (employer, divided into EPF, EPS & EDLI)
3. Key Benefits of ESI for Employees in Kerala
- Medical Care: Free treatment at ESI hospitals and dispensaries
- Sickness Benefit: 70% of wages for 91 days during certified illness
- Maternity Benefit: Full salary for up to 26 weeks during pregnancy
- Disablement Benefit: Monthly pension for temporary or permanent disability
- Dependent’s Benefit: Monthly payments to dependents in case of death
- Funeral Expenses: ₹15,000 for last rites
4. Key Benefits of EPF for Employees in Kerala
- Retirement Savings: Lump-sum savings with interest
- Pension: Monthly pension under EPS after retirement
- Partial Withdrawals: Allowed for housing, education, marriage, and medical needs
- Life Insurance: EDLI offers life cover of up to ₹7 lakhs
- Online Access: Real-time PF balance check via UAN portal
5. Employee Contributions Explained
EPF
- 12% of Basic + DA (employee share)
- 12% by employer, split into:
- 8.33% to EPS
- 3.67% to EPF
- Additional admin & EDLI charges
ESI
- Employee: 0.75% of gross wages
- Employer: 3.25% of gross wages
6. What is the ESI Pehchan Card?
Every registered employee receives a unique Pehchan Card with a 10-digit insurance number. This card is mandatory for accessing ESI benefits at hospitals and dispensaries.
Documents required:
- Aadhaar card
- Passport-size photo
- Family member details (for dependent coverage)
7. How to Check and Withdraw EPF Funds
To check balance and make a withdrawal:
- Activate UAN (Universal Account Number) via EPFO Member Portal
- Log in and go to “View Passbook” for balance
- For withdrawal, navigate to “Online Services > Claim (Form-31,19,10C)”
- Enter reason and bank account details linked to UAN
- Submit and track status under “Track Claim Status”
Note: KYC must be verified before online claim submission.
8. What Happens When You Change Jobs?
When you change employers:
EPF:
- Your UAN remains the same
- New employer will link PF contributions to existing UAN
- You can transfer old balance through “One Member – One EPF” feature
ESI:
- Your 10-digit Insurance Number remains valid
- New employer will activate benefits under their establishment
- Carry forward benefits without break, provided contributions are continuous
9. Where to File ESI/EPF Grievances in Kerala
If you face delays or issues in benefits:
- EPF Grievance Portal: epfigms.gov.in
- Regional EPF Offices: Located in Kochi, Thrissur, Kozhikode, and Kollam
- ESIC Online Support: esic.in
- Or contact PEAK Business Consultancy Services for professional help
Conclusion
ESI and EPF are powerful social security tools that protect you and your family against financial hardships arising from health issues, retirement, or emergencies. As a responsible employee in Kerala, understanding your rights and how to access these benefits ensures you make full use of what you’re entitled to.
Still have questions or need help with ESI/EPF registration, withdrawal, or compliance? Contact PEAK Business Consultancy Services today for professional assistance.
