Employees State Insurance Corporation of India is a social security system that is designed to provide socio-economic protection to workers and their immediate family and dependants.
The contribution to the scheme has two components :
- Employer’s Contribution
- Employee’s Contribution
- Employer’s Contribution – 3.25% of the wages paid/payable
- Employee Contribution – 0.75% of the wages paid/payable
The rates for the contribution are declared by the Employee’s State Insurance Corporation and are revised from time to time. The contribution includes both the employer and employee contribution. The latest revision is w.e.f. 01.07.2019 and the rates are as follows
If the employee’s daily average wage is up to Rs.137, they are exempted from making the contribution; however, the employer must make their share of contribution.
The Employers must deduct the employee contribution from the wages bill and must pay the employer and employee contribution at the rates specified above within 15 days of the end of the month in which contributions are made.
Designated branches of the State Bank of India and some other banks are authorized to receive the contribution on behalf of ESIC.
The following table illustrates the window period for Contribution and for obtaining cash benefit.
|
Contribution |
Cash Benefit |
|
1st April to 30th Sept |
1st Jan of the following year to 30th June |
|
1st Oct to 31st March of the year following. |
1st July to 31st December. |
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