E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer's is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.100/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employee's contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Self Financing,social security and health insurance scheme for Indian workers.
Managed by ESI Corporation.
Started in India in 1948 for factory workers.
Today it Provides security to all employees from all Industries.
Eligibility:-
Any person Employed in Company having salary less than or equal to 21000.
Contribution:-
Every Employee has to pay 1.75% of Gross salary and Employer has to pay 4.75% of the wages towards ESI contribution.