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About ESIC

HQ- New Delhi

Founded: 24 Feb 1952 (By PM Pt. Jawaharlal Nehru)

To circulation of the ESIC Act 1948, was the first legislation on social security for workers in  independent India by the parliament. When the industry was in its budding stage and the  country was heavily dependent on a variety of imported goods from the developed or the fast developing countries, this act came into force. 

The Act is related to certain health related issue of that the workers may face, they can be  sickness, maternity, permanent or temporary disability, death due to in job injury. Which can  result into loss of wages or earning capacity reduction. 

What is the Act?


“An Act to provide for certain benefits to employees in case of sickness, maternity and  ‘employment injury’ and to make provision for certain other matters in relation thereto.  WHEREAS it is expedient to provide for certain benefits to employees in case of sickness,  maternity and employment injury and to make provision for certain other matters in relation  thereto.” [Act No. 34 of 1948]

ESIC Contribution


The ESI Scheme is financed mainly by contributions from employers and employees.  Contribution is taken as a fixed percentage of wages.

ESIC contribution rates
Particulars Rate
Employer Share 3.25%
Employee share 0.75%
Total 4.00%

The rate of contribution was reduced from 6.5% to 4% effective from 1 July 2019. (’_State_Insurance)  

Employees receiving wages of Rs. 176 / – per day have been exempted from payment of  contribution. 

The maximum sharable amount is subject to the ceiling prescribed by the Corporation from  time to time. An expenditure beyond the prescribed ceiling is solely borne by the State Govts.

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