HR & Payroll
Employee State Insurance
ESI
Social security and health insurance scheme funded by employer (3.25%) and employee (0.75%) contributions.
What it means
ESI is governed by the Employees' State Insurance Act, 1948. Applicable to establishments with 10+ employees and to workers earning up to ₹21,000/month gross. Employer contributes 3.25% of gross wages; employee contributes 0.75%.
Covered employees and their dependents get medical care, sickness benefits, maternity benefits, disability benefits and dependents' benefit. Monthly contribution must be paid by the 15th of the following month.
How Easedesk handles Employee State Insurance
Easedesk auto-flags employees crossing the ESI wage ceiling and stops contribution accordingly. ESI challan is generated and posted with the IP-wise breakdown ready for upload to the ESIC portal.
Related terms
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