Latest Updates in ESIC

ESI Brought new change in Contribution rate w.e.f  1st, July 2019.

ESIC Scheme:

The Employee State Insurance Act of 1948 that provides social security to the  Employees who are working in an Organization enrolling in the ESI (Employee State Insurance)scheme in India.

The scheme provides various  medical care to the Employee and their family members, based on their eligibility criteria which fallows the employee number of working days and his monthly contribution.

Eligibility criteria for Employee in ESI: 

• Any Organization, Factory, Private sector or any Establishment running with or without ad of power or energy (Fuel, electric power etc) where the  no of employees is 10 or more.The employer has to register under ESIC to take employer registration no from the ESIC.

• The Employee who is working in any establishment (as said above) earning his  gross salary equal or less then Rs. 21000/- is the wage limit (earlier  it was equal or less than Rs.15000/- before 1st, January, 2017)

"Average daily wages of the  Employees not exceeding Rs.176 are exempted from  employee contribution".

The fund of the Employee State Insurance will be Contributed by the both Employee and Employer at the specific rate on gross wages of the employee.

Previous ESI Contribution Rate:

• Employer contribution: 4.75% on gross wage

• Employee contribution: 1.75% on gross wage

ESI Contribution Rate w.e.f  01.07.2019

• Employer contribution: 3.25% on gross wage

• Employee contribution: 0.75% on gross wage