About ESIC

APPLICABILITY

The ESI Act is applicable to all non-seasonal factories employing 10 or more persons [Section -1(2) read with Section 2(12) and Section 2(19A)]. The State Goverments have extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.

The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.

Limits

The existing wage limit for coverage under the Act, effective from 01.01.2017, is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability)

Esic Deduction Rate

The ESI deduction rate is 0.75% of the employee's wages for employee contributions and 3.25% for employer contributions, for a total of 4%. Employees with a daily average wage up to ₹176 are exempt from paying their contribution, but the employer still pays their share for these employees.

Contribution Type	Rate
Employee Contribution	0.75% of wages
Employer Contribution	3.25% of wages
Total	4% of wages

Due Date: 15th of the next month.

After Due date Applicable penalty & Interest As per structure

ESI late payment penalty (damages)

• Less than 2 months: 5% per annum
• 2 to 4 months: 10% per annum
• 4 to 6 months: 15% per annum
• 6 months and above: 25% per annum

Esic Benefits

• Medical Benefit
• Sickness Benefits
• Dependants' Benefit
• Maternity Benefits
• Benefits care of Retired IPs Disablement Benefit
• Funeral Expenses
• Vocational Rehabilitation
• Eduction Benefits
• Dependant's Benefit (monthly pension)