What Is Esic Deduction?

David Miller
David Miller
• • 6 min read

Employees Complete 12% Goes to Pf Account While Employer Contributions' 8.33% Goes to Pension Fund and 3.67% Goes to Pf Fund. Employee State Insurance...

What Is Esic Deduction?
Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension Fund and 3.67% goes to PF Fund. Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution.

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In this way, who are eligible for ESIC?

All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. 21,000 per month, are eligible to avail benefits under the Scheme. Employees earning daily average wage up to Rs.176 are exempted from ESIC contribution.

Secondly, how is ESI calculated on salary? ESIC includes the medical benefit both for the employee and employer. It is calculated on the basis of gross salary/wages/pay per month and the maximum limit is up to ₹ 21,000/- per month (earlier it was ₹ 15,000 per month). Minimum 20 eligible employees are required to get registered under ESIC.

Subsequently, question is, what is the salary limit for ESI 2019?

Earlier in February 2019, the income limit for availing the medical benefit for the dependent parents of an Insured Person covered under ESI Scheme has been enhanced from the existing Rs. 5000 per month from all sources to Rs. 9000 per month.

What are the benefits of ESIC?

He ESIC Act acts as a financial safety net for workers against these ailments.

Other benefits that are offered with ESI are:

  • Confinement Expenses.
  • Funeral Expenses.
  • Physical Rehabilitation.
  • Vocational Training.
  • Skill Upgradation Training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)
Related Question Answers

Is esic compulsory?

ESI is a compulsory for entities employing 10 or more persons, Earlier it was 20 revised to 10. ESI contribution is required for all the employees earning wages less than Rs. 21,000/- per month. Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers.

Must Read

What is ESI quota seats?

ESIC Quota is reserved medical admission of the wards of people who are insured with ESIC. “Employees' State Insurance Corporation” (ESIC) is Government of India initiative for socioeconomic protection to worker population and their dependants. Merit list is prepared based on All India basis.
David Miller

David Miller

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David Miller brings 15 years of experience in global economics, personal finance strategy, and market dynamics. He specializes in turning complex economic trends into actionable insights for everyday readers.