Business
India — Business: Social Security
India's social security system for employees centers on the Employees' Provident Fund (EPF, a retirement savings scheme, 12% employer + 12% employee contribution) and Employees' State Insurance (ESI, a health/disability insurance scheme for employees earning up to ₹21,000/month). Under the Code on Social Security, coverage has been expanded beyond traditional employees to include contract workers, fixed-term employees, and in some cases gig/platform workers. The definition of an 'excluded employee' for EPF purposes remains tied to a ₹15,000/month wage ceiling, unchanged in 2026.
Key facts
- EPF (retirement savings): 12% employer + 12% employee contribution; 'excluded employee' wage ceiling remains ₹15,000/month.
- ESI (health/disability insurance): covers employees earning up to ₹21,000/month (₹25,000 for persons with disability).
- The Code on Social Security expanded coverage to contract workers, fixed-term employees, and in some cases gig/platform workers — a significant broadening beyond traditional permanent employees.
- Both schemes are jointly funded by employer and employee contributions, deposited monthly.
Required documents
- UAN (Universal Account Number) for EPF
- ESIC registration for eligible employees
Common mistakes
- Assuming social security obligations apply only to permanent full-time employees — the Code on Social Security extends coverage to contract, fixed-term, and some gig workers as well.