ESIC (Employees’ State Insurance)
The Employees' State Insurance Corporation (ESIC) scheme is a self-financing social security and health insurance scheme for Indian workers, governed by the Employees' State Insurance Act, 1948. It provides medical, sickness, maternity, disability, and dependent benefits to employees and their families.
ESIC applies to employees earning gross wages up to ₹21,000 per month (₹25,000 for persons with disabilities) in establishments with 10 or more employees (threshold varies by state). The contribution rate is 4% of gross wages in total — 0.75% deducted from the employee and 3.25% paid by the employer — deposited monthly with ESIC.
Key points
- ✓ Applies to employees earning up to ₹21,000/month gross wages
- ✓ Total contribution rate is 4%: 0.75% employee + 3.25% employer
- ✓ Covers establishments with 10+ employees (varies by state for some sectors)
- ✓ Provides medical care, sickness benefit, maternity benefit, and disablement benefit
- ✓ Contributions are due by the 15th of the following month
Example
An employee with gross wages of ₹18,000/month is covered under ESIC; the employee contributes ₹135 (0.75%) and the employer contributes ₹585 (3.25%), totaling ₹720 deposited with ESIC for that month.
Frequently asked questions
What happens if an employee's salary crosses ₹21,000 mid-year?
Is ESIC applicable to all states equally?
Can I calculate ESIC contribution online?
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