Basic Concept

• PF refers to Provident Fund, a retirement benefit scheme for salaried employees.
  
• ESI stands for Employees’ State Insurance, a social security scheme providing medical and cash benefits.
  
• PF is managed under the EPF Act, while ESI is governed by the ESI Act.
  
• PF ensures long-term financial security after retirement.
  
• ESI focuses on health-related support during employment.
  

Applicability Criteria

• PF is applicable to establishments employing 20 or more employees.
  
• ESI is applicable to establishments employing 10 or more employees.
  
• PF applies to employees earning up to ₹15,000 per month, though voluntary higher coverage is allowed.
  
• ESI applies to employees earning up to ₹21,000 per month.
  
• Both require mandatory employer registration and compliance.
  

Contribution Structure

• Under PF, the employer and employee each contribute 12% of the basic wages.
  
• Under ESI, the employer contributes 3.25% and the employee contributes 0.75% of gross wages.
  
• PF contributions accumulate in the employee’s individual provident fund account.
  
• ESI contributions go to a central fund used for employee benefits.
  
• Contributions are deposited monthly for both schemes.
  

Type of Benefits

• PF provides retirement corpus, pension, and insurance cover under related schemes.
  
• ESI provides medical care, sickness benefits, maternity leave, and disability support.
  
• PF benefits are long-term and post-retirement in nature.
  
• ESI benefits are immediate and active during the employment period.
  
• Both enhance employee welfare through different support mechanisms.
  

Withdrawal and Claims

• PF can be partially or fully withdrawn under specific conditions.
  
• ESI benefits are availed through hospital and branch office networks.
  
• PF claims require submission through designated claim forms.
  
• ESI claims include medical treatment, reimbursement, or cash benefits.
  
• Both schemes have dedicated claim procedures subject to eligibility.