Employees' State Insurance (ESI Act 1948) and Provident Fund (PF Act 1952) are social security plans in India that attempt to protect employees' financial well-being.
ESI is a health insurance plan that offers employees and their families with medical and cash benefits, as well as financial aid for sickness, maternity, and disability. On the other hand, PF is a retirement savings plan that is mandatory for businesses with a specific number of employees.
It comprises contributions from both employers and employees, which accumulate as a provident fund from which employees can take upon retirement or during particular life events.
Both ESI and PF are essential components of the employee benefits landscape, encouraging financial security and well-being throughout a person's professional career.