Understanding ESI Contributions: How Much Do Employees and Employers Pay on a 35k Salary?

Hi everyone, please help me with this situation. If the salary is 35k and an employee wants to contribute to ESI, how much is the contribution from the employee and employer side based on a salary of 15k or 35k? Please help.

ESI Contribution Guidelines

ESI contribution is not covered for salaries of Rs. 15,001 and above. However, if the salary is Rs. 15,000 and below, we have to contribute 1.75% from the employee on the gross salary.

Thank you.

ESIC Coverage and Salary Limitations

It's not a choice. If someone has a salary of $35,000 per month, that employee cannot be covered under ESIC.

Thank you, but as per the act, if an employee wants to contribute in a 35k situation, the employer cannot deny it, which is illegal as per the act. So, what should we do?

Regards, Preeti

ESI Contribution Eligibility

As per the ESI Act, there is no need to contribute to ESI if the salary is Rs. 15,001 and above.

Mandatory Nature of Social Security Schemes

Social Security Schemes such as ESI are not optional. These schemes are compulsory because they involve mandatory contributions and insurance.

Currently, there is an abundance of negative information circulating on social media platforms and in newspapers regarding ESI and EPF. The government has even proposed a bill to eliminate these schemes for medium-scale and small units/factories. In light of this situation, may I inquire why you are interested in becoming a member of the ESI Scheme and contributing, especially considering that the statutory coverage limit is only Rs. 15,000 per month.

Thank you.

This is interesting information. Please clarify what is illegal under the act. To the best of my knowledge, it is illegal to try getting ESIC benefits for an employee whose gross salary is above 15,000 per month.

Eligibility for Coverage Under the Employees' State Insurance Act

Under the Employees' State Insurance Act, a coverable employee is one who has been drawing a salary/wage up to Rs. 15,000.00 per month. Only those employees are entitled to coverage and subsequent benefits under the Act.

If anybody is drawing a salary/wage over and above the limit for coverable employees and is covered under the scheme, it will be illegal, as the said employee does not fall under the definition of "Employee" under the act. Therefore, even if they are covered, they will not be legally eligible to receive any benefits of the scheme, and ESIC Corporation will not entertain any claims from such non-coverable employees.