E.S.I.C. latest update: ESIC contribution rates are reduced W.E.F. 1st July 2019

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any non-seasonal factory and company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC.

Entities covered under ESIC

Process & Procedure of ESIC Registration

Documents required for ESIC Registration

Benefits of ESIC Registration

Mandatory Returns Filed Every Year

Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employer needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

  1. Shops

  2. Restaurants or Hotels only engaged in sales.

  3. Cinemas

  4. Road Motor Transport Establishments;

  5. Newspaper establishments (which is not covered under the factory act)

  6. Private Educational Institutions