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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
A contributory health and social security scheme for employees earning at or below the wage threshold, currently ₹21,000 gross a month. The employee contributes 0.75% of gross and the employer 3.25%. Coverage generally begins at ten employees in a covered establishment.
Each payroll run, the team checks who falls at or under the ₹21,000 gross wage threshold and deducts 0.75% from the employee while the company adds 3.25%. Those amounts go into the monthly contribution return on the ESIC portal and are paid by the due date for that month.
Example with illustrative figures: an employee earning ₹18,000 gross has ₹135 deducted and the employer pays ₹585. If a raise in the middle of a contribution period takes the same person to ₹22,000, contributions continue until that period ends, which surprises teams that stop the deduction in the month of the raise.
Employees whose average daily wage is ₹176 or less pay nothing themselves, though the employer share still applies. HRMagix calculates the ESI split against the threshold and produces the monthly contribution report and challan data, per its published statutory module.
Employees' State Insurance, a contributory health and social security scheme.
Employees earning at or below the wage threshold, currently ₹21,000 gross a month.
The employee contributes 0.75% of gross and the employer 3.25%.
Coverage generally begins at ten employees in a covered establishment.
On gross.
No. It is determined over a half-yearly contribution period.
No. An employee covered at the start of a contribution period stays covered for that period.
In some cases, because LOP reduces paid days and therefore the salary on which contributions are computed.
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