Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
10-employee trigger, ₹21k wage
Mandatory at 10 employees in most states; covers those earning up to ₹21,000/month. Confirm your state’s threshold.
Contribution split
3.25% employer + 0.75% employee of wages.
What ESI gives, and the wage test
ESI is a contributory health and social-security scheme: covered employees and their dependants get medical care at ESIC hospitals and dispensaries, plus cash benefits for sickness, maternity, disablement and dependants. Coverage applies to employees drawing wages up to ₹21,000 a month (a higher limit applies for employees with disability), in establishments with 10 or more workers in most states — a few still use 20. Whether an employee crosses the ₹21,000 line is checked at the start of each contribution period, and someone who is in ESI for a period continues to the end of it even if a mid-period raise lifts them over the limit. Contributions — 3.25% employer and 0.75% employee — are deposited by the 15th of the next month. Registration is once, online, and is generally granted quickly. Because the wage ceiling and the state thresholds change from time to time, it’s worth confirming the current figures when you first cross the headcount, and reviewing coverage each time you hire.