Who is Covered Under ESI?
- Factories:
Applicable when 10 or more employees are engaged. - Covered Establishments (Section 1(5)):
Shops, hotels, restaurants, cinemas, road transport undertakings, newspaper establishments, private medical institutions, and educational institutions employing 10 or more employees, as notified by the respective State Government. - State Variations:
In certain states, the applicability threshold may be 20 employees for specific establishments. Hence, state-specific verification is crucial. - Wage Limit:
- General employees: Up to ₹21,000 per month
- Persons with Disabilities: Up to ₹25,000 per month
- Once ESI becomes applicable, registration is mandatory, and non-compliance may lead to penalties, interest, and legal action.
ESI Contribution Structure
- Employer Contribution: 3.25% of wages
- Employee Contribution: 0.75% of wages
💡 Contributions must be deposited on or before the 15th of the following month to avoid interest and legal consequences.
Key Benefits of ESI
✔ Cashless medical treatment for employees and their dependents
✔ Sickness and maternity benefits
✔ Disability and dependent benefits
✔ Funeral expense coverage
ESI not only safeguards employees but also enhances employer credibility and statutory compliance.
Common ESI Compliance Mistakes
- Delay in ESI registration
- Incorrect wage calculation
- Late payment of contributions
- Non-filing or incorrect filing of ESI returns
⚠️ These lapses often result in penalties, interest, inspections, and compliance notices.
Why Choose VG Expert Advisors LLP?
With 10+ years of professional experience, we offer end-to-end ESI compliance solutions, including:
- ESI Registration & Monthly Compliance
- Accurate Contribution Calculation & Return Filing
- Advisory on ESI Applicability & Thresholds
- Handling ESI Notices, Audits & Assessments
Call to Action (CTA)
📢 Need expert guidance on ESI compliance?
Let our professionals manage your statutory obligations while you focus on growing your business.
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