Confused About ESI Deduction? Let's Figure It Out Together

Hi, I'm confused about the deduction of ESI applicable. Help me out.

ESI Applicability and Contributions

ESI is applicable to all employees of an organization that has an employee strength of 10 or more and uses electricity. The ESI contribution to the ESI Corporation is 1.75% from the employee and 4.75% from the employer, based on the gross salary of the employee. However, an employee is exempted from paying the ESI contribution if they earn less than Rs 40/day, but the employer must still pay their contribution. The latest ceiling limit is Rs. 15,000 gross salary for the employee.

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Shreekanth.p.r

ESIC Deduction Details

ESIC deduction is a mandatory deduction for all employees whose gross income is below Rs. 15,001. However, there are certain industries and locations where ESIC is not applicable. Please find attached the details. Additionally, you can refer to Google and CITEHR for more information.

I have collected all these documents from CITEHR itself, posted by various members like you and me. Many thanks to CITEHR and its members. If you have any further queries, please do not hesitate to let me know.

Thank you.

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