ESIC Calculation and Maximum Salary Ceiling Limit For ESIC Deduction

WHAT IS THE LATEST ESIC CALCULATION AND MAXIMUM SALARY CEILING LIMIT FOR ESIC DEDUCTION.

Regards,
K.Suresh Babu

I am MBA final year student and making report on Employees' State Insurance (ESIC). Will you tell ESIC calculation for Max salary celing limit and deductions and pay details?

Employees' State Insurance (ESIC) is a self-financing social security and health insurance scheme for Indian workers.

The fund is managed by the Employees' State Insurance Corporation according to rules and regulations stipulated in the ESI Act 1948

Salary details:

The ESIC has now increased the wage limit for ESI Act to Rs 21,000.

The wage ceiling was last raised in May 2010. Back then, the wage limit was increased from Rs 10,000 to Rs 15,000. Now the wage limit has been raised to Rs 21,000.

For ESI calculation, the salary comprises of all the monthly payable amounts such as

– Basic pay,
– Dearness allowance,
– City compensatory allowance,
– House Rent Allowance (HRA),
– Incentives (including sales commissions),
– Attendance and overtime payments,
– Meal allowance,
– Uniform allowance and
– Any other special allowances.
The gross monthly salary, however, does not include Annual bonus (such as Diwali bonus), Retrenchment compensation, and Encashment of leave and gratuity.

ESI Calculations

The rates of contribution, as a percentage of gross wages payable to the employees, is explained in the table below
Percentage of Gross Pay Example Gross Salary Contributions
Employee Deduction 0.75% Rs 15,000 15,000 * 0.75% = 112.50
Employer Contribution 3.25% 15,000 * 3.25% = 487.50
Total Contributions for this employee 112.50 + 487.50 = Rs 600.00

Contact:

Employees' State Insurance Corporation
Panchdeep Bhawan
Comrade Indrajeet Gupta (CIG) Marg,
New Delhi - 110 002.

Phone: 011-23234092, 23234093, 23234098, 23235496, 23236051, 23235187, 23236998 (EPABX)
Fax: 011-23235481, 23234537
Toll-Free: 1800-11-2526
1800-11-3839 (For Medical related queries/advice)