ESI Contributions: How Does Rounding Work for Employers Compared to Employees?

Rounding off ESI Contributions

In the case of ESI contributions, the employee's contribution is rounded up. For instance, if the ESI value is 312.10, it will be rounded to 313. How does this rounding off work for the employer's contribution?

The ESI (Employee State Insurance) contribution, both from the employee and the employer, is based on the gross earnings of the employee. The rounding off procedure for the employer's contribution works similarly to that of the employee's contribution.

If the decimal part of the contribution is 50 paise or above, it is rounded up to the next whole number. Conversely, if it is less than 50 paise, it is ignored. For instance, if the employer's contribution comes to 312.50, it will be rounded off to 313. But if it's 312.49, it will remain as 312.

Please note that these contributions are subject to changes as per the latest amendments in the ESI Act, 1948. For the most recent and detailed information, you should refer to the official website of the Employee's State Insurance Corporation http://www.esic.nic.in/.