Employer's/employees' contribution

The employer is required to contribute at the rate of 4.75% of the wages paid/payable in respect of every wage period. The employees are also required to contribute at the rate of 1.75% of their wages, except when the "average daily wages in a wage period" are equal to or less than Rs. 40. Employees earning less than and upto Rs. 40 per day are exempted from payment of contribution.

It is the employer’s responsibility to deposit his own as well as employee’s contributions in respect of all employees including the contract labour, into the E.S.I. Account.

The employer may deduct the employees contribution from his wages in respect of the period for which the contribution is payable.