PF vs ESI: the differences for employers in one table

What each one gives your staff

PF (Provident Fund, also called EPF) gives your staff savings and a pension. Read PF benefits for employees.

ESI (Employees' State Insurance) gives your staff medical care, and pay when they can't work because of sickness, injury or maternity. Read ESI benefits for employees.

You can share these two guides with your staff. Want to know what your business gets from PF and ESI? Read What does your business get from PF and ESI?

The table: PF and ESI side by side

PF and ESI rules now come from the Code on Social Security, 2020, in force from 21 November 2025.

The table: PF and ESI side by side

	PF	ESI
What it gives your staff	Savings and a pension	Medical care and sick pay
When it applies to your business	20 or more staff, in any industry	10 or more staff, in every state. ESI does not apply to seasonal factories. For some risky kinds of work, ESI can apply even with 1 employee. Call us to check.
Who counts	All staff, including casual staff, staff sent by a contractor and staff above the wage limit. Not apprentices.	The same as PF (staff above the ESI wage limit also count)
Once it applies	It stays, even if your staff later drop below 20	It stays, even if your staff later drop below 10
Wage limit	PF wages of ₹25,000 a month or less (from 17 September 2026)	ESI wages of ₹21,000 a month or less (₹25,000 for a person with a disability)
Wages it is worked out on	PF wages: basic pay plus DA (dearness allowance), not the full salary	ESI wages: they leave out some pay items, such as HRA (house rent allowance) and overtime
The 50% rule	PF wages must be at least half the total pay. If they come to less, the difference is added to PF wages.	ESI wages must be at least half the total pay. If they come to less, the difference is added to ESI wages.
Who pays what	The employee pays 12% of their PF wages; you pay 12%, split between their PF savings and the pension (EPS)	Most employees pay 0.75% of their ESI wages; you pay 3.25% (4% in total). Staff on very low daily pay don't pay their share, but you still pay 3.25%.
Due date	By the 15th of the next month	By the 15th of the next month
Government office	EPFO (the government PF office)	ESIC (the government ESI office)
Each employee's number	UAN (their PF account number). New staff get their UAN with a quick face scan on the UMANG app.	IP (Insured Person) number, their ESI number

For the full rules on who counts, read PF: who must register and ESI: who must register.

Two more points that the table can't show:

Staff with PF wages above ₹25,000:

• Already in PF: they stay in PF.
• New joiners above ₹25,000 who were never in PF: they can join PF if you and they both agree in writing.
• In PF at an old job? Call us to check.

Read more in PF wage limit is now ₹25,000.

ESI contribution periods: ESI has two contribution periods a year: April to September, and October to March. You still pay ESI every month, by the 15th of the next month.

Working with us? We guide new staff through the UMANG face scan. We create IP numbers on the ESIC portal.

When you need both

Look at how many staff your business has.

• 10 to 19 staff: ESI applies, except in seasonal factories. PF applies once you reach 20.
• 20 or more staff: PF applies, in any industry. ESI applies too, except in seasonal factories.

Then look at each employee. PF and ESI each have their own wage limit, and PF wages and ESI wages are worked out in different ways. So one employee may need to be in PF, in ESI, or in both. Working with us? We'll check who must be in PF and ESI.

Just reached 10 or 20 staff? Read Your business just reached 10 or 20 staff: what to do next.

Registering for both

Working with us? We register your business for PF, ESI or both. We tell you which documents we need when you call. Once we have all your documents, it takes just a few hours. See PF registration and ESI registration.

After you register, both are paid every month by the 15th. Working with us? Each month, we file the ECR (the monthly list of each employee's wages and PF, sent to the PF office) and your monthly ESI details. We get the payment slip (challan) ready in time, so you can pay by the 15th. Or send us the amount and we pay it. For the full routine, read our monthly PF and ESI checklist.

Paying late costs extra for both. Read What happens if you pay PF late? and What happens if you pay ESI late?

Our free tools for each

• Does it apply? PF eligibility checker and ESI eligibility checker
• What you and your staff pay PF contribution calculator and ESI contribution calculator
• Cost of paying late PF penalty calculator and ESI penalty calculator

Rather not do this yourself? We file PF and ESI for you every month. We work by phone and email. We can visit you if needed, in Mangalore and Bangalore. Our founder worked at EPFO for 35 years. He taught us the PF rules.

See our PF monthly filing and ESI monthly filing services.