Four New Changes in ESIC/ESI With Effect From 1st October, 2019

The Employees’ State Insurance Act 1948 (the ESI Act) provides for medical, cash, maternity, disability and dependent benefits to the Insured Persons under the Act. The ESI Act is administered by Employees’ State Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded by the contributions made by the employers and the employees.


The Government of India in its pursuit of expanding the Social Security Coverage to more and more people started a programme of special registration of employers and employees from December, 2016 to June, 2017 and also decided to extend the coverage of the scheme to all the districts in the country in a phased manner. The wage ceiling of coverage was also enhanced from Rs. 15,000/- per month to Rs. 21,000/- from 01.01.2017.

Present Current ESIC contribution Rate:

Employers’ share: 3.25%

Employees share: 0.75%

Four New Changes in ESIC with effect from 1st October, 2019

1. Employees must be registered online on the date of appointment; the online system shall allow maximum 10 days to register the new employee.
2. Employee will have to collect their Biometric ESI Permanent Card from nearest Branch Office.
3. Contribution against employee must be deposited within the due date. You shall not be able to deposit contribution online after 42 days from the end date of the contribution period.
4. Employee whose per day salary is Rs. 176/- or less need not to pay Employee’s contribution and the same will be paid by Govt. However, Employer will have to pay their share of contribution.