ESI

Also known as: Employees' State Insurance

ESI (Employees' State Insurance) is a health-insurance and social-security scheme for employees earning up to ₹21,000 a month, funded by employer (3.25%) and employee (0.75%) contributions.

ESI applies to establishments with 10 or more employees (threshold varies by state). Contributions are due by the 15th of the following month and are administered through two six-month contribution periods (April–September and October–March).

Formula

Employee 0.75% + Employer 3.25% of gross wages; deposit by 15th of next month

Related terms

General information, not tax, legal or accounting advice. Thresholds and timelines change by notification — confirm applicability with your CA, CS, or lawyer.

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