Employees’ State Insurance Corporation
The Employees’ State Insurance (ESI) Scheme is one of the most popular schemes for the employees engaged in various sectors of the India. It was the first major legislation on social Security for workers in entire India. Under the ESI Registration scheme ensures the facilities of medical, sickness, maternity, monetary, and various other benefits such as funeral expense to the employees and their families. Such facilities are very important for improving health, performance and progress of employees. The ESI funds are built out of contribution from employers and employees. It is mandatory for the employer to register their Factory/ Establishment under the ESI Act
ESI Registration is required when an entity employs 10 or more persons with individual wage/salary falling under the threshold limit of INR 21,000 per month . After registration, ESIC provides to entity a 17-digit unique identification code to each of the factory/establishment
Employee’s Provident Fund
The fund is maintained by the Employees Provident Fund Organisation (EPFO).EPFO is a statutory body under the control of the Ministry of Labour and Employment, Government of India. The main purpose of EPF fund is to help an employee to save a portion of his salary so that employee can use the same in the event when employee is temporarily or no longer fit to work or at retirement. The EPF scheme not only covers workers in India but also of other countries subject to bilateral agreements have been signed.
Any company with 20 or more employees is required to register with the EPFO and draws a salary of up to Rs.15,000 per month. EPFO introduced a new system called Unique Account Number (UAN). It is a unique 12-digit number which will remain the same throughout the lifetime of an employee . The number would work everywhere. This UAN number helps employees to manage their provident fund accounts without any difficulty. Usually, when an employee leaves an organization, EPF number also gets changed of the employee in new organization. In this new system, go to any job, this 12 digit UAN number would remain the same. The UAN number will act as a identity of an employee till his retirement.