ESIC Statutory Framework: Rules & Contribution Rates
The Employees’ State Insurance Corporation (ESIC) provides comprehensive medical cover, sickness benefits, maternity benefits, and disablement pensions to formal sector workers in non-seasonal factories and establishments.
Employee Contribution = 0.75% of Gross Wages
Employer Contribution = 3.25% of Gross Wages
Total Remittance = 4.00%
Employer Contribution = 3.25% of Gross Wages
Total Remittance = 4.00%
1. Statutory Gross Ceiling Limits
Employees earning up to ₹21,000 per month in gross wages are mandatorily covered. For employees categorized as Persons with Disabilities (PwD), the statutory wage threshold is enhanced to ₹25,000 per month.
2. Daily Average Wage Exemption (₹176/day rule)
Employees whose average daily wage is ₹176 or less are treated as exempted employees. They are not required to pay the 0.75% employee contribution, while the employer pays the statutory 3.25% share.