🇮🇳 Social Security in India

Henning Wandsleb
Henning Wandsleb
  • Updated

Oyster policy is denoted in purple.


Social Security in India is controlled by the Employees’ Provident Fund (EPF). The Employees’ Provident Fund provides for pension, provident fund, life and disability insurance. The Employees’ State Insurance, guaranteed through the same law, provides for healthcare, unemployment benefits, and sick pay.

New employees who need to be mandatorily covered as members of the Employees’ Provident Fund and accordingly need to obtain their Unique Account Number (UAN) are:

(a) Employees who draw a basic salary of up to INR 15,000 per month; or

(b) International workers (non-Indian passport holders).

The UAN is a unique 12-digit number allotted by the Employees’ Provident Fund Organization (EPFO) to the member employee. Additionally, new employees who are already members of the EPF based on their previous employment, are also required to be covered for the EPF contributions.

Employee Contributions

Most employees will fall under the Provident Fund scheme, to which employers and employees with at least 20 employees must contribute 12% each of the statutorily-defined wage. The employer deducts the employee’s 12% from his or her paycheck. In Oyster, team members can opt whether to contribute a flat amount of INR 1,800 or 12% of their basic salary. All of the employee’s contributions goes into their Employee’s Provident Fund account.

Employer Contributions

Of the employer’s contribution; 3.67% goes to the employee’s EPF account, the other 8.33% goes to the Employee Pension Scheme (EPS). EPS is contributed solely by the employer, the team member cannot contribute to this scheme. Only team members whose basic salary is not more than INR 15,000 per month are eligible to join this scheme. If the team member is not eligible, the 8.33% employer’s contribution will go into the team member’s EPF account instead. Most team members in Oyster are not eligible for EPS as their basic salaries are higher than INR 15,000 per month.



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