Understanding ESI: Which Industries Can Deduct It from Salaries and What Benefits It Offers?

What is ESI? Which industries are eligible to deduct ESI from salary? Please provide full information about ESI.

ESI stands for Employee State Insurance. It is a self-financing social security and health insurance scheme for Indian workers. ESI is applicable to establishments with 10 or more employees where the monthly wage is up to Rs. 21,000.

Industries such as manufacturing, medical, educational institutions, and other sectors come under the purview of ESI. Employers deduct ESI contributions from employees' salaries and contribute their share to the ESI fund.

Employees covered under ESI are entitled to various benefits such as medical assistance, sickness benefits, maternity benefits, disablement benefits, and more. ESI aims to provide financial assistance and healthcare benefits to employees in times of need.

Overall, ESI plays a crucial role in ensuring the well-being and security of employees in India.

Eligibility:

- Any establishment whose employee strength is more than 20.
- Gross salary should be less than $10,000.

Any employee whose salary is Rs. 10,000 or less will be covered by the Employee State Insurance (ESI) from day one.

With regards,
Rajesh Chauhan

Employee's State Insurance (ESI)

ESI DEDUCTION:
Employee = 1.75% (of gross salary)
Employer = 4.75% (of gross salary)
Maximum limit of ESI deduction: Rs. 10,000/- gross salary (above Rs. 10,000/- ESI not applicable)

Date and month of statutory return: Before 21st ESIC Challan

Monthly statutory register should be maintained. ESIC half-yearly in the month of May.

Regards,
Pankaj Chandan

Dear Vijay,

ESI is applicable to those who are getting a salary Basic+DA+HRA (up to Rs. 10,000 excluding overtime wages) per month. Above this salary limit is exempted. Organizations having 10 persons with the aid of power & 20 persons without the aid of power are required to comply with ESI regulations.

ESI deductions are as follows: 1.75% from the employee's salary and 4.75% from the employer's contribution. ESI contributions start from day one of the employee's joining.

Best Regards,

Sajid Ansari

ESI DEDUCTION:-
EMPLOYEE = 1.75 % (OF GROSS SALARY)
EMPLOYER = 4.75 % (OF GROSS SALARY)
Total ESI Contribution = 6.5%

ESI means Employee's State Insurance Corporation. Basically, ESI is applicable for all types of industries, and you must deduct ESI from the daily wages of construction workers. I was unaware of this matter when ESI inspection was taking place in my company. The ESI limit for salaried employees is up to Rs. 10,000.

ESI Deductions:
ESI deduction up to a salary of Rs. 10,000.
Total deduction of ESI is 6.5% of the gross salary.
Employees contribute 1.75% of the gross salary.
Employers contribute 4.75% of the gross salary.

Returns:
- Half-yearly
- Annual return

This is all about ESIC.

Thanks & Regards,
Mahesh Khilar

Dear Dingu Vijay,

The ESI scheme is a unique multidimensional self-financing social security scheme in which every contribution is a benefactor and a beneficiary. This integrated scheme of health insurance provides comprehensive medical cover and cash benefits in the contingencies of sickness, maternity, disablement, and death due to employment injury to the insured persons and their dependants.

ESI coverage is for 10 employees in businesses such as Power Used (e.g., Printing press, Manufacturing, etc.). Otherwise, a minimum of 20 employees is required for ESI coverage, who draw a salary up to Rs. 10,000.00.

For more details, please reach out to Kumar at 9811747078 or via email at kumaresic@rediffmail.com.

Dear Prasad,

I believe this ESI PPT will be helpful for you.

Regards,
Lakshman

Dear Suresh,

The employment strength required for ESI is 10 out of 20, i.e., for power using 20. The salary for compulsory ESI deduction is ₹10,000 or less.

Thank you.

The Employees' State Insurance Act, (ESI) provides for certain benefits to employees in case of sickness, maternity and employment injury. It applies to the organization with more than 10 employees who have less than 10000rs salary. The employer is required to contribute at the rate of 4.75% of the salary paid. The employees are also required to contribute at the rate of 1.75% of their salary.It is the employer's responsibility to deposit his own as well as employee's contributions in respect of all employees including the contract labour, into the E.S.I. Account.

Hello Friends,

Please help me out with ESIC calculation:

If the gross salary for staff is Rs. 10,200 p.m., it means they are not eligible for ESIC facilities. However, our salary structure includes a Washing Allowance (Expenses) of Rs. 300, making the salary Rs. 9,900 per month.

Do we need to provide ESIC facilities to that staff or not?

Regards,
Madhura

Hi Rajasekar,

A nice informative PPT. In addition to the labor legislation mentioned in the PPT, The Factories Act 1948, and Industrial Disputes Act, 1947 are important to comply with. Besides, the HR department has to comply with the provisions of environmental laws. Keep on posting.

Avinash Kanoray
9890752690
akanoray@sify.com