ESI
Also called: Employees State Insurance, ESIC
What is ESI?
Employees' State Insurance is a statutory scheme providing medical care, sickness benefit and related cover to employees earning below a wage ceiling, funded by contributions from both employer and employee.
Why ESI matters
ESI applicability is driven by both establishment size and individual wages, so it changes as pay rises. Missing coverage for eligible staff is a compliance exposure that grows quietly.
How ESI works in practice
Check applicability whenever wages are revised, since an employee can move out of coverage mid-year. Contributions are deposited monthly with a return, on the same discipline as provident fund.
Frequently asked questions
Employees earning up to the prescribed wage ceiling in covered establishments; the ceiling is revised from time to time.