What is ESI (Employees' State Insurance)?
- ESI (Employees' State Insurance)
- ESI is a social security scheme for employees earning up to ₹21,000/month, providing medical, disability, and maternity benefits — funded by employer (3.25%) and employee (0.75%) contributions.
ESI Applicability
ESI is mandatory for establishments with 10+ employees (factories: 10+, other establishments: 20+). Employees earning gross salary up to ₹21,000/month are covered. Contributions are due by the 15th of the following month. File returns twice yearly (April and October) via the ESIC portal.
ESI Benefits for Employees
ESI covers: full medical treatment for the employee and family, cash compensation for sick leave (50–70% of wages), maternity benefits, disability compensation, and dependants' benefit on death. For employers, ESI compliance protects against labour law penalties and fosters employee goodwill.
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