Employees’ Contribution = 1.75% of their wages
Employer Contribution = 4.75% of employees’ wages
Here, wages include both salary and wages and it is taken as Gross. Maximum limit for Gross Salary/ wages is INR 15,000/-.
It means those who are earning more than INR 15,000 are not covered under the Scheme and cannot contribute. If the salary/ wages increased above INR 15,000, that employee ceases to be a member of ESI scheme in the month in which his/ her salary has increased above limit.
Employees who are earning INR 100/- per day are not required to contribute their share of contribution. In this case, only employer contribute its share.
Payment of this ESI contribution (Employees and Employer) to the Govt. Treasury is the responsibility of the employer. Employer need to deduct employees share of contribution from their salary/ wages and need to deposit it to the Govt. Treasury along with its contribution. Due date for deposit is the 21 days from the last day of previous calender month.
All the branches of State Bank of India are authorised to collect this amount.
Must Read: Employees’ State Insurance (ESI) – What is ESI? Its coverage and applicability?