Employee State Insurance is a health benefits scheme managed by the ESIC(Employee State Insurance Corporation).The primary purpose of ESI is to provide financial and medical benefits to employees in case of maternity, sickness, disability, or death due to employment injury.
The following establishments are covered under the act
Employees contribute 0.75% and employers contribute 3.25% of their salary towards ESI.
Employee State Insurance provides a range of benefits to employees, including medical care, maternity benefits, disability benefits, and death benefits.
Employee State Insurance (ESI) is calculated based on the employee’s salary and the employer’s contribution rate.
ESI = Employee contribution + Employer Contribution
Let us say an employee named Mr. X works at ABC company, and his monthly wage is Rs. 18000.
ESI = Rs 135 + Rs 585 = Rs 720
Your employer must deposit your ESI contribution on or before the 15th of the subsequent month. For the May month of ESI contribution, the amount should be deposited before April 15th.
Penalty for delayed payment of employee state insurance shall be as follows:
|Delay period||Percent of interest per annum|
Less than 2 months
|2 to 4 months||10%|
|4 to 6 months||15%|
|6 months and above||