What is ESIC (Employees’ State Insurance)?
Short answer
ESIC is a health and benefits insurance scheme for employees earning up to ₹21,000 a month. The employee pays 0.75% of wages and the employer pays 3.25%.
Who is covered and what is paid
- Employees whose monthly gross wages are ₹21,000 or less are covered, in establishments the scheme applies to.
- The employee contributes 0.75% of wages and the employer 3.25%.
- Contributions are paid, with the monthly return, by the 15th of the next month, and each covered employee has a 10-digit insurance (IP) number.
Example
On gross wages of ₹20,000 a month, the employee’s ESIC is ₹150 and the employer’s is ₹650.
In AdviHR
AdviHR checks the wage limit each month, deducts the employee share, shows the employer share, and produces the portal’s monthly contribution file.
Frequently asked questions
Up to what salary is ESIC applicable?
Employees earning up to ₹21,000 a month in gross wages.
What are the ESIC rates?
0.75% of wages from the employee and 3.25% from the employer.
Related terms
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser.