What is ESIC?
ESIC stands for Employees' State Insurance Corporation.
ESIC is India's statutory social security and health insurance scheme providing medical and cash benefits to formal-sector workers earning up to ₹21,000 per month.
ESIC explained
Governed by the Employees' State Insurance Act, 1948, ESIC is mandatory for non-seasonal factories and establishments employing 10 or more persons (20 in certain states) located in notified implementation areas.
The statutory contribution rates are 0.75% of gross wages for the employee and 3.25% of gross wages for the employer, totaling a 4.0% combined contribution. Employees with a daily average wage up to ₹176 are exempt from paying the employee share, though the employer must still pay the employer share.
Monthly ESIC returns and payments must be filed online through the ESIC portal by the 15th of the subsequent month. Covered employees receive comprehensive medical care for themselves and dependents, sickness cash benefits, maternity benefits, and disablement pensions.
Official source: Employees' State Insurance Corporation
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