What is ESI (Employee’s State Insurance Scheme)?
Employee’s State Insurance is a government scheme that provides protection to employees against financial distress arising due to death/disablement/injury at work.
Under this scheme, the workers and employers are required to contribute to an insurance fund that grants benefits to employees when needed.
Here is the list of the states with the minimum number of workers eligible for the scheme.
Minimum Number of Employees Required in the Different States
Himachal Pradesh, Jammu & Kashmir,
Tripura, Delhi, Karnataka, West Bengal, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Uttarakhand
What are the ESI Contribution Rates?
Workers with a monthly salary of more than ₹21,000 are not entitled to the scheme. In addition, workers with a daily average wage of ₹137 are exempted from their contribution. In this case, the employer will be entitled to contribute to the social security fund only.
How to Add ESI in SalaryBox?
Create a salary template to add ESI. Follow the steps below to create your salary template on your Android phone.
1. Open the SalaryBox app and go to Settings.
2. Select Salary Settings.
3. Choose Manage Salary (CTC Template).
4. Click on + Create Template.
5. Then, enter the Template Name and basic salary percentage.
6. You can add the remaining salary percentage as allowances if the basic salary is not 100%.
7. Click in front of Employer ESI under Employer Contribution, select 3.25% Variable, and Save.
8. Select the 0.75% Variable under the Deductions section and Save.
9. Once done, click on Create Template to save it.
1. Open the SalaryBox app on your iPhone and click on the employee name you want to add ESI for.
2. Tap on three dots at the top right corner and select Edit Employee from the drop-down.
3. Scroll down to the Salary Payment Info and select Edit ESI, EPF, and Allowance.
4. Choose the preferred month from the ‘Salary from’ option.
5. Click on Employer ESI under the Earnings section and select the 3.25% Variable.
6. Do the same under the Deduction section, and click on Update to complete it.
You can also add allowance to the employee under the Add Allowance option. To know how to add an allowance, click here.
If you want to add ESI to an employee's salary, you can follow the steps given below and create a salary template in the desktop app.
1. Open the SalaryBox desktop app and select Settings.
2. Scroll down to Salary Settings and select Create Salary Template.
3. Tap on +Create Salary Template.
4. Enter the Template Name and set the Basic salary percentage if you provide allowances.
5. Select Employer ESI under Employer Contribution and select 3.25% Variable.
6. Click Save to save it.
7. Select Employee ESI under the Deductions section and select the 0.75% Variable and Save.
8. Once done, click on Save to save the template.
Once created, you can set your salary template for specific employees. To know how to do it, refer to this article.
If you face difficulties adding ESI or need further assistance, contact our support team at email@example.com
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