Question 1

What is the ESI contribution rate?

Accepted Answer

The employee contributes 0.75% of gross wages and the employer contributes 3.25% of gross wages, for a total ESI contribution of 4% of gross wages.

Question 2

What is the ESI wage limit?

Accepted Answer

ESI applies to employees whose gross monthly wage is ₹21,000 or less (₹25,000 for employees with disabilities). If gross wages exceed the limit, ESI is not deducted.

Question 3

What benefits does ESI provide?

Accepted Answer

ESI provides medical care, sickness benefit, maternity benefit, disablement benefit, and dependant benefit to insured employees and their families through ESIC dispensaries and hospitals.