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ESI

Employees' State Insurance

Mandatory health-insurance contribution for low-income employees.

What is ESI?

ESI = 0.75% from employee + 3.25% from employer (= 4%). Applies to employees with salary ≤ ₹21,000. Mandatory for businesses with 10+ such employees. Provides medical benefits at ESI hospitals.

Who needs ESI?

Employers with 10+ low-wage employees.

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