Understanding EPF and ESI: Is It Wrong to Deduct ESI but Not EPF for a 14,000 Salary?

Is the employee definition the same in EPF and ESI law? Whether a person covered under ESI is also covered under EPF or vice versa?

For example, if an individual has a salary of 14,000 and the employer deducts ESI but not EPF, is this incorrect?

ESI and EPF are two different schemes and have no correlation! Have you tried inquiring with your employer on why they are not deducting PF?

If the establishment is covered under the EPF Act, then they have to deduct, or the employee may have exceeded 57 years of age.

I am asking from a practical viewpoint whether one person covered under ESI is also covered under PF.

If the employee is over 57 years of age, they cannot be added as an EPF member.

As there is a new Shram Suvidha portal for combined ESI & EPF return. Does this mean that if one employee is covered under one Act, they are theoretically covered under the other Act as well?

@manish, be practical. There may be employees earning over 21,000/- on average monthly who are excluded from ESIC. Similarly, there would be many who are over 58 and do not have any UAN, so they may get excluded from EPF. Shram Suvidha is a register and return submission portal; it does not enforce the rules and laws.

Thank you Sharma Ji.

My bad, I couldn't explain it. I meant, could there be a situation where a person is an "employee" as per ESI law but not as per EPF law or vice versa? Ignore the salary limit or if he's getting 12000 p.m.

If the employee has no previous EPF account/UAN and has exceeded 58 years of age, then EPF does not come into picture; only ESIC is applicable.

Dear All,

The EPF threshold limit is Rs. 15,000/- and the ESI threshold limit is Rs. 21,000/-. If any person earns less than Rs. 15,000/-, they should be covered under both Acts. If any person earns more than Rs. 15,000/- but less than Rs. 21,000/- in wages, or more than Rs. 21,000/-:

1. If the person is in their first employment, they are covered only under ESI.
2. If the person is already a member of EPF, they should be covered under both Acts (ceiling for EPF is Rs. 15,000/-).
3. If the person is earning more than Rs. 21,000/-, they will be covered under EPF as per point No. 2, and ESI will also be covered until the end of the contribution period.
4. There is no age bar for coverage under EPF. The age bar is only for the pension fund. Contributions to EPF can continue for superannuated individuals.

Regards, Kaleswara Rao