Employee State Insurance (ESI)

Implementation Updated by Implementation

What is Employee State Insurance (ESI) ?

This is a self-financing social security and health insurance scheme applicable only to employees whose monthly salary is ₹21,000 or less. The employees’ contribution for ESI is 0.75% of Gross Pay and employers contribution would be 3.25% of Gross Pay. It is available in all states except ‌Manipur, Sikkim, Arunachal Pradesh and Mizoram.

Overview :-

Employees State Insurance Act has been passed to provide certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for related matters. As the name suggests, it is basically an ‘insurance’ scheme i.e. employee gets benefits if he is sick or disabled.

Employees State Insurance provides cash and medical benefits to employees (and their families) who are earning a gross of Rs. 21,000 or less.

In case ESI is applicable for your employees, you can enable the same in Zenscale ESI, so that the system starts calculating ESI for your employees every month.

Use Case :-

Suppose a company name with Abhishek Industries Private Limited Since. ESI is a contribution and reduces the take-home salary of employees, This company can decide to limit the ESI calculation on maximum gross of Rs. 21,000 and not the actual raised gross (resulting in more take-home salary), Zen scale gives its users an option to restrict the ESI calculation to gross of Rs. 21,000.

How to Activate EPF setting :- Following below steps to activate ESI setting :-

1. Statutory > Unsubscribe Apps

2. Unsubscribe > ESI

3. ESI > Subscribe

4. Refresh the page.

5. Statutory > ESI

6. Activate the ESI setting

7. ESI calculation > Go to Master

8. Select heads for ESI calculation

9. Set salary limit for ESI and set employee and employer consideration amount percentage.

10. Click on Save and Continue

  • Some Users need ESI challan format.Follow below steps to download and print ESI challan :-

1. Statutory > ESI Challan report

2. Select month and year which you required

4. User can download it in excel file also.

How did we do?

Employee Provident Fund (EPF)

Employee Welfare Fund