What is the ESI rate for the year 2023?

Introduction

The Employee State Insurance (ESI) scheme, managed by the Employee State Insurance Corporation (ESIC), is a comprehensive social security system aimed at providing medical, monetary, and other benefits to Indian workers. In this blog, we will explore the ESI contribution rate for the year 2023 and understand its implications for employers and employees. We will delve into the eligibility criteria, ESI salary limit, contribution rates, and how to check your employee ESIC contribution online.

ESI Contribution Rates and Salary Limits

To ensure widespread coverage, the ESI scheme mandates that any non-seasonal factory or company employing more than 10 employees (20 employees in some states) with a maximum salary of Rs. 21,000 must register with the Employee State Insurance Corporation and provide ESI benefits to their employees.

The contribution rates for the ESI scheme are determined by the ESIC and these are subject to revision from time to time. As of the latest revision, effective from 1st July 2019, the contribution rates for the year 2023-24 are as follows:

• Employer’s Contribution: 3.25% of the wages paid/payable.
• Employee Contribution: 0.75% of the wages paid/payable.

If an employee’s daily average wage is up to Rs. 176, they are exempted from making contributions. However, the employer is still responsible for making their share of the contribution.

How to check Employee ESIC Contribution?

Employees can check their ESIC contribution online through the ESIC portal. The portal provides a user-friendly interface for employees to check their contributions and other details. The following are the steps involved in checking the employee ESIC contribution online:

• Visit the ESIC portal: The first step is to visit the ESIC portal. The portal provides all the necessary information regarding the ESIC scheme.
• Click on the ‘Employee Login’ link: The next step is to click on the ‘Employee Login’ link. This will take you to the login page.
• Enter the login details: The login details include the ESIC number, password, and captcha code. Once you have entered the login details, click on the ‘Login’ button.
• Check the contribution details: Once you have logged in, you can check your contribution details. The portal provides all the necessary information regarding the contribution, including the contribution rate, the contribution amount, and the date of contribution.

Frequently Asked Questions on ESI Scheme

1. What is an ESI card?

An ESI card, also known as a pehchan card, is a magnetic card issued to each insured person. It serves as proof of enrollment in the ESI scheme and is necessary to avail of various ESIC benefits.

2. Who fixes the rate of contribution for the ESI scheme?

The rate of contribution for the ESI scheme is fixed by the Government of India. The rates are periodically revised, and the current employee contribution rate (w.e.f. 1.07.2019) is 0.75% of the wages, while the employer’s contribution rate is 3.25% of the wages paid/payable.

3. Is an employee still covered under the ESI scheme if their salary exceeds Rs. 21,000 in a month?

If an employee’s salary limit exceeds Rs. 21,000 after April or October (depending on the contribution period), the employee remains covered under the ESI scheme until the end of that contribution period. Consequently, contributions should be deducted and paid on the total wages earned.

4. Can I withdraw my ESIC amount?

The ESIC amount is a form of insurance premium contributed by employees and employers.

5. Are ESIC funds withdraw able for personal use?

No, the ESIC funds cannot be withdrawn for personal use. The scheme operates as an insurance scheme where premiums are contributed by employees and employers. The funds can only be utilized for specific benefits provided under the ESI scheme, such as medical treatment, sickness, disability, and other eligible expenses.

6. Is the ESI scheme applicable to all states in India?

Yes, the ESI scheme is applicable nationwide. However, some states have specific requirements regarding the number of employees for mandatory ESI registration. In most states, any non-seasonal factory or establishment with 10 or more employees is required to register under the ESI scheme.

Conclusion

In conclusion, the ESI rate for the year 2023 is fixed by the ESIC. The contribution rate for employees is 0.75% of their wages, and the employer’s contribution is 3.25% of the wages. The salary limit for ESI deduction is Rs. 21,000 per month. It is important to ensure that all the necessary contributions are made to the ESIC fund to avail of the benefits of the scheme. By following the steps outlined in this blog, employees can check their ESIC contribution online and ensure that they are in compliance with all the ESIC laws and regulations.