What are the Contribution Rates for ESIC?
The percentage of contributions made to the ESIC authorities are as under: By the eligible employees – 1.75% of Gross wages By the employer – 4.75% of Gross wages, including administrative charges Thus company will bear an additional burden of 4.75% to comply with the ESIC monthly on the gross wages. Employees covered under the scheme are persons whose monthly gross salary is of less then Rs.10, 000 before the range of the gross salary is of less then Rs. 7,500. But after the 1.10.2006 all employees whose wages exceeds Rs. 7,500 per month but does not exceed Rs. 10,000 per month would become coverable under the ESI Act, 1948 w.e.f 01.10.2006. The above amount is to be deposited in Challan form prescribed under the act. • A half yearly return on Form 6 is to be submitted with local ESI office. • Declaration forms are to be submitted with local office of ESI within 10 days of new joining. • Before doing all this for ESI applicability please check with the local ESI office whether the ESI
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