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Labour Codes in India

We handle matters pertaining to Employment Laws, Pan India, including Supreme Court and all the High Courts in India

EMPLOYEES' STATE INSURANCE

Eligibility Criteria in India (as of January 2026)

The Employees' State Insurance (ESI) scheme, administered by the Employees' State Insurance Corporation (ESIC) under the Code on Social Security, 2020 (effective for ESI provisions since November 2025), provides comprehensive medical, sickness, maternity, disability, and other social security benefits to eligible workers and their dependents.Key Eligibility CriteriaEstablishment Applicability:Applies to non-seasonal factories and establishments (e.g., shops, hotels, restaurants, cinemas, road transport, newspapers, private educational/medical institutions) employing 10 or more persons (20 or more in some states/UTs).

Extended nationwide—no longer limited to notified areas.

Covers hazardous occupations even with fewer employees.

Includes contract, casual, fixed-term, and certain gig/platform workers under expanded provisions.


Employee Wage Threshold:

Employees drawing monthly wages up to ₹21,000 are mandatorily covered.
For persons with disabilities: Up to ₹25,000 per month.
Wages include basic pay, dearness allowance, and most allowances (excluding overtime, as per uniform definition under the new labour codes).
If wages exceed ₹21,000 mid-contribution period (April-September or October-March), coverage continues until the end of that period.


Other Conditions:
No minimum/maximum age limit.
Employees earning daily average wages up to ₹176 are exempt from their contribution share (employer still contributes).
Once covered, an employee remains insured for the benefit period even if wages rise temporarily.


Contribution Rates (Current as of 2026)
Employee: 0.75% of wages.
Employer: 3.25% of wages.
Total: 4%.

Employers must register eligible establishments and employees via the ESIC portal. Non-compliance can lead to penalties. The scheme enhances social security, especially for lower-wage workers, with benefits like full medical care for insured persons and families.For the latest notifications, check the official ESIC website, as thresholds may be revised periodically.


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