Answer

Government benefits · Social Security

ESIC: Employee State Insurance for health cover below ₹21,000 salary

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  1. Facts

    ESIC provides comprehensive health, disability, maternity, and unemployment benefits to employees earning below ₹21,000/month (₹25,000/month for persons with disability).

  2. Provisions and law

    • Employees' State Insurance Act 1948 | ESIC | Applicable: establishments with 10+ employees

  3. Analysis

    Contributions: Employee: 0.75% of gross wages. Employer: 3.25% of gross wages. From January 2017, reduced contribution for employees below ₹137/day wage threshold. Benefits: Full medical care for self and family (no premium). Sick leave cash benefit (70% of wages). Maternity benefit (26 weeks at full wages). Disablement benefit (90% of wages). Funeral expenses on death: ₹15,000. As an employer: Compulsory ESIC registration if you have 10+ employees in a covered area and any employee earns below ₹21,000. Late contribution penalty: 12% per annum interest.

  4. Conclusion

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