ESI Return Filing

Employees State Insurance Scheme (ESIC) 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. The Central Government reduced the ESI Contribution from 6.5 % to 4 %, and applicable from July 01, 2019. Currently, the employee’s contribution rate (w.e.f. July 01, 2019) is .75% ( 1.75% )of the wages and that of employer’s is 3.25% ( 4.75% ) of the wages paid/payable in respect of the employees in every wage period. For newly implemented areas, the contribution rate is 1% of wages of Employee and 3% payable by Employers for first 24 months(w.e.f. 06.10.2016) Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.