ESIC (EMPLOYEE STATE INSURANCE CORPORATION)

Businesses that employ 10 or more persons, drawing wages of up to Rs.15,000/- a month, are required to be registered for ESIC under the ESI Act, 1948. As of today, expect for Manipur, Sikkim, Arunachal Pradesh, and Mizoram, all other States and Union Territories in India are required to comply under the ESI Act, 1948. As on 31.3.2013, nearly 6.66 lakh employers are registered with the ESIC, extending ESIC benefit coverage for over 1.65 crore employees. To get your business’ ESIC Registration

ESI Scheme is a self-financing health insurance scheme. Therefore, funding the benefits under the scheme from the contributions that are from employees and their employers as a fixed percentage of wages. As of now, covered employees contribute 1.75% of the wages to the ESIC, and covered employers contribute 4.75% of the wages, payable to their employees. Employees earning up to Rs.100/- a day need not pay their share of contribution. Employers are liable to pay the total ESIC contribution (employer portion and employee portion) in respect of every employee. Deductions must be made from the employees’ wages bill at the rate prescribed, and the same should be deposited with the ESIC within 21 days of the last day of the Calendar month in which the contributions fall due. ESIC has designated branches of the State Bank of India and some other banks to receive the ESIC contribution deposits.