EPF – EMPLOYEE PROVIDENT FUND
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India. The Employees’ Provident Fund Organisation administers three schemes, namely, the Employees’ Provident Fund Scheme, 1952, Employees’ Deposit Linked Insurance Scheme, 1976 and Employees’ Pension Scheme, 1995. The Employees’ Provident Fund Organisation is currently one of the biggest social security organisations in the world by virtue of its volume of transactions.
FEATURES:
- Those people working in government, public or private sector organisations in India;
- It provides financial security in your rise years;
- Under the scheme, 12% of your basic, dearness allowance in addition to the cash value of your food allowances forms part of contributions to your EPF account.
- The EPF interest rate of India ranging from 8 to 12 % is decided by the central government and Central Board of trustees.
ESI – EMPLOYEE STATE INSURANCE
It is a self-financing social security and health insurance scheme for Indian workers. This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948. ESIC is an autonomous corporation by a statutory creation under Ministry of Labour and Employment, Government of India.
FEATURES:
- For all employees earning ₹15,000 less per month as wages, the employer contributes 4.75 percent and employee contributes 1.75 percent, total share 6.5 percent.
- State government’s share is 1/8th and that by central government is 7/8th. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family.
ESI scheme is a type of social security scheme for employees in the organised sector.
