ESI contribution refers to the amount of money that an employer and employee need to pay towards the Employees’ State Insurance (ESI) scheme. The ESI scheme is a social security and health insurance scheme for workers in India.
The contribution is calculated as a percentage of the employee’s gross salary and is split between the employer and employee.
The current ESI contribution rate is 4% for employees and 3.25% for employers, for a total of 7.25% of the employee’s gross salary. The contribution is made on a monthly basis and is deposited with the ESI Corporation.
