One of the most frequent questions I get from workers and HR heads alike in early 2026 is: “Is it true that everyone in India now gets PF and ESIC?”
The short answer is: Yes, the safety net has expanded significantly-but “Universal Social Security” works differently depending on who you are.
With the Code on Social Security, 2020 now in effect, India has shifted from an “industrial employment” mindset to a worker-centric framework. Whether you’re a delivery partner, a factory worker, or a techie, the law now recognizes your right to protection.
1. The Organized Sector: PF and ESIC Are Still the Gold Standard
For traditional on-payroll employees, the legacy systems of EPF (Employees’ Provident Fund) and ESIC (Employees’ State Insurance) continue, but with expanded coverage:
- EPF Coverage: The threshold remains at establishments with 20 or more employees. The definition of “wages” has changed under the Code on Wages, 2019 (the 50% rule), which impacts PF and Gratuity calculations.
- Important: PF contributions remain capped at ₹15,000/month for mandatory coverage. Employers may voluntarily contribute on higher wages, in which case the 50% rule prevents artificially low wage bases.
- Pan-India ESIC: ESIC, once limited to “notified areas,” now applies nationwide. Establishments with 10 or more employees must register.
- Hazardous Work Clause: ESIC is mandatory for even a single worker if the establishment is engaged in hazardous or life-threatening occupations, as defined under the Occupational Safety, Health and Working Conditions Code, 2020 and government notifications.
2. The Unorganized Sector: The e-Shram Revolution
Millions of workers-construction labourers, street vendors, home-based artisans-now have a legal pathway to social protection:
- National Social Security Board: Oversees schemes for unorganized workers, including insurance and pension benefits.
- e-Shram Portal: Workers who register and obtain a Universal Account Number (UAN) become eligible for schemes like Ayushman Bharat (PM-JAY), life/disability insurance, and more.
3. Gig & Platform Workers: The New “Aggregator” Levy
For the first time, gig workers-delivery partners, ride-hailing drivers, freelance service providers-have statutory protection:
- Aggregator Contribution: Platforms like Ola, Swiggy, and Amazon must contribute 1–2% of annual turnover to a dedicated Social Security Fund.
- Portable Benefits: With Aadhaar-linked UANs, benefits follow the worker across platforms. Switching from Rapido to Zepto doesn’t reset their social security history.
4. Fixed-Term Employees (FTE): Parity Is Power
Contract duration no longer determines benefit entitlement:
- Full Benefits: FTEs are entitled to PF and ESIC just like permanent employees.
- Gratuity Eligibility: Subject to applicable rules and notifications, FTEs may be eligible for pro-rata gratuity after completing 12 months of service.
Disclaimer: This content is provided for educational and informational purposes only and does not constitute legal advice. While the Code on Social Security, 2020 aims for universal coverage, specific benefit amounts and eligibility depend on government-notified schemes, income thresholds, and state-level rules. Readers are advised to consult with a qualified legal professional or the respective statutory bodies (EPFO/ESIC) for case-specific guidance.