ESI contribution stands for employee state insurance contribution an integral part of the ESIC scheme implemented by the government of India for employee social security and medical benefits.
ESIC specified ESI percentage at which both employee and employer need to pay to the ESIC Corporation. ESI payment must be paid within 15 days of time from last day of the calendar in which transactions falls due. ESIC is a government entity established according to the provisions stipulated under ESI Act 1948.ESI raised employee salaryceiling from 15,000 to 21,000 RS.
Benefits provided by ESI
Medical benefits:ESI grant these benefits to the employee and his/ her family in event of any disease or accident
Sickness benefits: The employee must complete 78 days of consecutive working for sickness benefits
Enhanced sick benefits: The employee will earn 14 days of enhanced sick leave after completing 78 days of consecutive working
Extended sic benefits: As per the ESI Act, 1948 employee has to complete four periods each of 156 consecutive working days in two years.
Funeral expenses: 10,000 Rs granted to the employee or his/her family
Dependents benefits: In the event of employee’s death, the widow is granted with ESI dependents benefits until they are re-married if the employee is unmarried, the parents are considered as dependents
Maternity benefits: According to the ESI 1948, pregnant female employees are granted with 26 weeks of full paid leaves.
Employee state insurance scheme percentages
The contribution rate of the employee is 1.75%
The contribution rate of the employee is 4.75%
ESIC scheme has two ESI deduction periods with each of 6 months duration
First duration 1 April to 31 September
Second duration 1 October to 31 March
ESI also provides cash benefits period with each of 6 months duration and they are
1st January to 30 June
1st July to 31 September
ESI employer contribution is higher than the employee contribution and calculated as
ESI employer contribution= Gross salary * (4.75/100)
Here gross salary paid regarding the employee by the Establishment
ESI deduction rate for the employee = gross salary * (1.75/100)
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