Statutory
ESIEmployees' State Insurance
ESI is a social-security scheme giving medical, sickness, maternity and disablement benefits to employees earning up to ₹21,000 a month, funded by a 0.75 percent employee and 3.25 percent employer contribution.
Establishments with 10 or more employees (20 in some states) in notified areas must register. Coverage is tested on gross monthly wages; once covered, an employee stays covered till the end of the contribution period even if a raise takes them above the ceiling.
Contribution periods run April to September and October to March; returns follow each.
In Indian payroll
Employees earning up to ₹176 a day are exempt from their own share but the employer still pays. Contributions are due by the 15th of the following month.
What is ESI?
ESI is a social-security scheme giving medical, sickness, maternity and disablement benefits to employees earning up to ₹21,000 a month, funded by a 0.75 percent employee and 3.25 percent employer contribution.
Why does ESI matter in Indian payroll?
Employees earning up to ₹176 a day are exempt from their own share but the employer still pays. Contributions are due by the 15th of the following month.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where ESI is handled, on the same employee record as everything else.
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