Employee State Insurance Contribution

Ministry of Labour and Emplyment has increased the scope of Employee state insurance act , 1948 vide notification dated 20.04.2010.Now employee taking salary up to Rs 15000/- (increased from 10000)are covered under ESI ACT ,1948.Notification is given below.This Notification is applicable from 01.05.2010.

ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 15000 Rs./Month.


The contribution from both the sides is as below-

Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees. 

Posted in: Payroll