Question 1

Which employees are covered under ESI?

Accepted Answer

Employees earning gross wages up to ₹21,000 per month (₹25,000 for persons with disabilities) are covered under ESI. Coverage is mandatory for establishments with 10 or more employees in most states. Once covered, the employee and dependents are entitled to medical care, sickness cash benefit, maternity benefit, disablement benefit, and dependent benefit.

Question 2

What are the ESI contribution rates?

Accepted Answer

The employer contributes 3.25% of gross wages and the employee contributes 0.75% of gross wages. Employees earning up to ₹176 per day (approximately ₹3,780 per month) are exempt from the employee contribution but are still covered and entitled to all ESI benefits.

Question 3

What is the due date for ESI contribution deposit?

Accepted Answer

ESI contributions must be deposited by the 15th of the following month. Half-yearly returns in Form 6 must be filed by May 11 (for October to March period) and November 11 (for April to September period). Late deposit attracts interest at 12% per annum.

Question 4

What medical benefits do ESI-covered employees get?

Accepted Answer

ESI provides full medical care to insured employees and their dependents at ESIC hospitals and dispensaries — including outpatient treatment, hospitalisation, specialist consultations, surgery, and medicines — at no cost to the employee. This is a significant benefit, especially for lower-income employees who cannot afford private healthcare.

Question 5

What happens if an employee's salary increases above ₹21,000?

Accepted Answer

If an employee's salary crosses ₹21,000 during a contribution period (April to September or October to March), their contribution continues until the end of that period. They exit ESI coverage from the start of the next contribution period. The employer must update the wage change on the ESIC portal.

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