How Do I Explain ESI Benefits and Deductions to My Team in an Email?

Dear All,

We have recently applied for an ESI code, and I would like to inform my employees about the benefits and the percentage deducted through email. Please help me with this.

Thank you.

ESIC Contribution Details

The total contribution to the ESIC Department is 6.5%. The employer should pay 4.75%, and the employee/labour should pay 1.75%. Employees with a salary below ₹15,000 are eligible for this. They should not pay any amount at ESI hospitals, as ESI will provide free treatment.

This information is for your reference.

Regards,
Koteswara Rao.Y
[Phone Number Removed For Privacy Reasons]

ESIC is applicable in case the earned gross is less than or equal to Rs. 15,000/- w.e.f. May 2010.

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Dear Ms. Prema,

Please find attached the ESIC benefits of employees and the employer's responsibilities. This is for your information.

Thanks & Regards,
Ravi Dutt Sharma

Dear Prerna, You can write an email similar to the one I am writing below after making changes according to your understanding:

Dear Team,

We are happy to inform you that we have applied for the ESI code, and the same will be applicable from next month onwards.

Benefits of ESI (Employee State Insurance):

- Sickness
- Maternity
- Temporary or permanent disablement
- Occupational disease
- Death due to employment injury, resulting in the loss of wages

Additionally, dependents in your family are also covered without any extra charges. For more details, you can log on to the ESIC Website.

A nominal amount of 1.75% of your gross salary will be deducted on your part, and Management will contribute 4.75% of your salary in accordance with the ESIC Act 1948. This law is applicable for employees with a gross salary of up to Rs15k.

You will soon receive ESI forms to fill. Kindly ensure all details are completed.

We request your full support. We value your concerns, and any queries regarding this matter are welcomed.

Dear all,

I have attached ESI & PF documents. They are available on CiteHR only.

Thanks,
KV Radhakrishnan

ESI Coverage and Contributions

1) An employee with a monthly emolument (Gross Salary) up to Rs. 15,000/- is coverable under this scheme.

2) In this coverable salary/wages, the Washing Allowance is exempted.

3) Employees' contribution at 1.75% of their monthly gross salary/wages (except washing allowance) should be paid to ESIC every month on or before the 21st day of every month.

4) Employer's contribution at 4.75% of monthly gross salary/wages (except washing allowance) of employees should be paid to ESIC every month on or before the 21st day of every month.

Benefits Offered by ESIC

5) ESIC offers Medical & Sickness benefits to every member having an Insurance Number.

6) Medical benefits (Medical Treatment) are applicable immediately after obtaining the Insurance Number (Membership). Sickness Benefits (Paid Leaves) are applicable after 9 months from the date of membership.

7) There are other benefits like Maternity Benefit, Expenses for dependents' (father/mother) funeral, Accident Benefit, etc.

For more details, you can visit the ESIC website or refer to the Act.

Regards,
Anil
[Phone Number Removed For Privacy Reasons]

Regards

My pleasure, Prema. You may have to face some initial resistance as their take-home salary will be reduced to some extent. However, once employees understand the benefits, they will willingly complete all the formalities. Besides email, you can also conduct a session to educate employees. This will save your time as many queries will be common, and you won't have to answer each one separately.