Current ESIC Contribution Rates

• The total ESIC contribution rate is 4% of the gross wages.
  
• The employer contributes 3.25% of the employee’s wages.
  
• The employee contributes 0.75% of their wages.
  
• These rates apply uniformly to all eligible employees.
  
• Contributions are calculated monthly based on actual wages paid.
  

Breakdown of Contribution Responsibilities

• The employer deducts the employee’s share from monthly wages.
  
• The employer remits both shares to ESIC before the due date.
  
• Separate remittance is not required as both are paid together.
  
• The responsibility for timely filing lies with the employer.
  
• Proper payroll systems ensure accurate deduction and deposit.
  

Wage Limit for Applicability of Contribution

• Employees earning up to ₹21,000 per month are covered.
  
• For persons with disabilities, the wage ceiling is ₹25,000 per month.
  
• Contributions are mandatory only for employees within the wage threshold.
  
• Employees crossing the limit remain covered until the end of the contribution period.
  
• Eligibility must be reviewed regularly to ensure compliance.
  

Exemption from Contribution

• Employees earning less than ₹176 per day are exempt from paying their share.
  
• However, the employer must still pay their full 3.25% share.
  
• This exemption supports extremely low-income workers.
  
• The exemption applies only to the employee’s portion of the contribution.
  
• Proper classification in records is required for claiming this exemption.
  

Revision and Notification of Rates

• Contribution rates are notified by the Ministry of Labour and Employment.
  
• The last revised rates came into effect in July 2019.
  
• Employers should monitor official notifications for future changes.
  
• Any change in rates must be implemented immediately without delay.
  

Updated rates apply from the date of notification across all establishments.