Latest ESIC Contribution Rates for Employers and Employees — Updated for 2025
The Employees' State Insurance Corporation (ESIC) provides medical, financial, and social security benefits to employees working in eligible establishments. Every employer covered under the ESI Act, 1948 must contribute a fixed percentage of wages towards the ESIC fund, along with a small contribution from employees.
ESIC contribution rates are reviewed periodically by the government. This guide explains the latest ESIC contribution rates applicable for employers and employees in 2025, along with detailed tables and eligibility criteria.
1. What Are ESIC Contribution Rates?
ESIC contribution rates represent the percentage of employee wages that must be deposited into the ESIC fund every month. These contributions help employees avail benefits such as medical treatment, maternity benefits, disability coverage, and financial security.
2. Latest ESIC Contribution Rates for 2025
As per the current notification, the total ESIC contribution remains 4% of wages, divided between employers and employees.
Employer Contribution Rate (2025)
The employer contributes 3.25% of the employee's monthly wages. This is mandatory for all covered establishments with employees earning wages up to the ESIC wage ceiling.
Employee Contribution Rate (2025)
The employee contributes 0.75% of monthly wages, deducted automatically from salary.
3. ESIC Contribution Summary Table (2025)
| Contribution Type | Rate (2025) |
|---|---|
| Employer Contribution | 3.25% |
| Employee Contribution | 0.75% |
| Total ESIC Contribution | 4.00% |
4. ESIC Wage Ceiling for 2025
Employees earning ₹21,000 per month (or ₹25,000 for persons with disabilities) are covered under ESIC. If wages exceed this limit during the contribution period, deductions continue until the end of the ongoing contribution cycle.
5. When Are ESIC Contributions Paid?
Employers must deposit monthly ESIC contributions by the 15th of the following month. Late payments attract penalties and interest.
6. Benefits of Paying ESIC Contributions on Time
- Access to full medical and cash benefits for employees
- Avoidance of penalties and inspection issues
- Compliance with the ESI Act
- Smoother audits and government verifications
- Coverage for dependents in case of an emergency
Conclusion
Understanding ESIC contribution rates is essential for every employer to stay compliant and provide mandatory social security benefits to their workers. The rates for 2025 remain unchanged at 4% of wages, split between employers and employees. Ensuring timely payments and accurate wage calculations helps avoid penalties and ensures employees receive uninterrupted ESIC benefits.