ESIC

ESIC is governed by the Employees' State Insurance Act, 1948, and administered by the Employee State Insurance Corporation under the Ministry of Labour and Employment. It applies to factories and establishments with 10 or more employees (20 in some states). The current contribution rates are 3.25% of gross wages paid by the employer and 0.75% paid by the employee, totaling 4% of gross wages. The monthly wage ceiling for ESIC coverage is INR 21,000 (INR 25,000 for persons with disability). Benefits include medical care for employees and their families, sickness benefits at 70% of wages, maternity benefits at 100% of wages for 26 weeks, disablement benefits, and dependants' benefits in case of employment injury or death. Employers must register on the ESIC portal and file half-yearly returns.

What is the ESIC contribution rate in India?

The current ESIC contribution rate is 3.25% of gross wages paid by the employer and 0.75% paid by the employee, for a combined total of 4%. This applies to employees earning up to INR 21,000 per month.

Who is exempt from ESIC contributions?

Employees earning more than INR 21,000 per month (INR 25,000 for persons with disability) are exempt from ESIC. Establishments with fewer than 10 employees (20 in some states) are also not covered under the ESI Act.