Employee State Insurance

Employee State Insurance (ESIC)

The Employees’ State Insurance scheme (ESI) is a mandatory social security scheme under the ESI Act, 1948. India Payroll automates ESI contribution calculation and injection into Salary Slips.

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1. How to Enable

1. Go to Payroll Settings → India Payroll tab.
2. Check Enable ESIC Deduction.
3. Optionally enter your ESIC Registration Number (appears on the ESIC Register report).
4. Save.

Enabling ESI deduction

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2. How It Works

The single contribution row covers both shares:

Share	Rate
Employee contribution	0.75% of gross wages
Employer contribution	3.25% of gross wages
Combined (on slip)	4.00% of gross wages

Note

The employer’s 3.25% is shown as a single line on the slip for transparency. It is part of the CTC and not a separate payable deduction from the employee’s perspective.

3. Wage Ceiling

Category	Monthly Gross Wage Ceiling
General employees	₹21,000
Persons with Disability (PwD)	₹25,000

The PwD status is read from the is_person_with_disability checkbox on the Employee master.

• Employees at or below the ceiling are covered (ESI row injected).
• Employees above the ceiling are not covered (ESI row removed if previously present).

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4. Persons with Disability

To apply the higher ₹25,000 ceiling for a PwD employee:

1. Open the appropriate Salary Structure Assignment document.
2. Check Is Person with Disability.

The hook reads this field on every slip save, so changing the flag mid-year takes effect on the next payroll run.

5. ESIC Card Number

The ESIC Card No (IP Number) field is a standard Bravo Hub HR field on the Employee master. It is displayed in the ESIC Register report and should be filled for all covered employees for the report to be complete.

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