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.
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.