ESI (Employees' State Insurance) is the statutory health-insurance and social-security scheme for establishments with 10 or more employees, covering staff earning up to ₹21,000 a month (₹25,000 for persons with disability). The employee contributes 0.75% of wages and the employer 3.25%. In return, employees and their families get medical care through ESIC facilities plus sickness, maternity and disablement cash benefits.
Registration is establishment-wise; each covered employee gets an insurance number and access to ESIC dispensaries and hospitals. Contributions are deposited monthly by the 15th of the following month, alongside PF, and returns follow the scheme's fixed contribution periods. An employee whose salary crosses ₹21,000 mid-way remains covered — and contributions continue — until the end of the running contribution period, not from the day of the increment.
For a Jaipur employer the practical work is at payroll setup: decide who is coverable (headcount includes contract, casual and part-time workers — a frequent miss), configure the deductions and register before the first covered salary run. The common failure is treating contractor-supplied staff as someone else's problem: as principal employer you can be held liable for their ESI if the contractor defaults, so verify contractor compliance in writing.
Related terms
Frequently asked
- What is ESI?
- ESI (Employees' State Insurance) is the statutory health-insurance and social-security scheme for establishments with 10 or more employees, covering staff earning up to ₹21,000 a month (₹25,000 for persons with disability). The employee contributes 0.75% of wages and the employer 3.25%. In return, employees and their families get medical care through ESIC facilities plus sickness, maternity and disablement cash benefits.
- Who is covered under ESI?
- Establishments with 10 or more employees, covering staff earning up to ₹21,000 a month (₹25,000 for persons with disability). Headcount includes contract, casual and part-time workers.
- What are the ESI contribution rates and due date?
- The employee contributes 0.75% of wages and the employer 3.25%, deposited monthly by the 15th of the following month, alongside PF.
Reviewed to the law in force in FY 2026-27. General information, not advice — confirm the position for your facts before acting.
