Employee State Insurance

All Groups

ESI is short for Employee State Insurance. It’s a government scheme that supports lower-income employees with medical care, sick leave, maternity, and other benefits. If someone earns ₹21,000/month or less, they’re usually covered.

As an employer, you contribute a fixed percentage, and so does the employee. The money goes to the ESIC, and employees can access services through their network hospitals. If your company crosses the threshold, ESI compliance becomes mandatory — and most payroll tools now handle the contributions, challans, and reports automatically.

Related Glossary

Recommended
Finance

It is concerned with the generation of income, accumulation and its disbursement in satisfying everyday needs as well as investment.

1 min
Popular
Payroll Software

Payroll software calculates salaries, handles tax deductions, generates payslips, and keeps you compliant — so your HR and finance teams don’t have to do it all manually.

1 min
Recommended
CTC in Salary

CTC is short for Cost to Company. It includes everything you spend on an employee — from salary and bonuses to PF, insurance, and gratuity.

1 min
Popular
TDS in Payroll

TDS is tax your company deducts from employee salaries based on income. It’s deposited with the government and recorded in Form 16.

1 min
Decide with confidence.

You must conduct thorough research and read user reviews to choose the best software for your needs. So, take a look at our website to understand better!