ESIC India, 2026 guide for Mumbai HR & payroll
Employees' State Insurance Corporation (ESIC) provides medical, sickness, maternity and disability benefits to workers earning up to ₹21,000. Here are the contribution rates, due dates, benefits and registration steps for Mumbai employers.
Establishments with 10 or more employees in notified areas must register under the ESI Act 1948. Employees earning up to ₹21,000/month (or ₹25,000 for persons with disability) are covered. Employee contributes 0.75% of wages, employer pays 3.25%, total 4%. Payment due by 15th of the next month. Portal: esic.gov.in.
ESIC employee + employer share, 2026
Rates effective since 1 July 2019 under the Employees' State Insurance Act 1948.
| Component | Rate | Wage cap |
|---|---|---|
| Employee contribution | 0.75% of gross wages | ₹21,000/mo |
| Employer contribution | 3.25% of gross wages | ₹21,000/mo |
| Total ESIC contribution | 4.00% | ₹21,000/mo |
| Persons with disability | Exempt up to 10 years | ₹25,000/mo |
| Daily wage < ₹176 | Exempt employee share | Employer pays only |
ESIC is calculated on full gross wages including basic, DA, HRA, conveyance, overtime, attendance bonus and other recurring allowances. Annual bonus and one-off payments are excluded.
Benefits under the ESI Scheme
Cash and medical benefits for insured persons and their dependents.
Full medical treatment for insured person and family at ESIC hospitals and dispensaries, from day one of employment.
70% of average daily wages for up to 91 days per year during certified sickness. Extended for specified long-term conditions.
100% of average daily wages for up to 26 weeks of paid maternity leave for insured women.
90% of average daily wages for the period of certified work-related temporary disability.
Monthly pension based on percentage loss of earning capacity, payable for life to the insured person.
Monthly pension to widow/widower and dependent children of insured person who dies due to work-related injury.
₹15,000 lump-sum payment towards funeral expenses on death of insured person.
Under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY), monthly allowance for involuntary unemployment after at least 3 years contribution.
Vocational rehabilitation and physical rehab for insured persons recovering from work-related injuries.
ESIC contribution and benefit periods
Two six-month cycles each year, with a six-month lag between contribution and benefit eligibility.
Cycle 1 April - September
Contributions paid monthly during this window count towards benefits in the next benefit period.
- Contribution period: 1 April - 30 September
- Benefit period: 1 January - 30 June of next year
- Monthly payment: by 15th of next month
Cycle 2 October - March
Second half-year contribution cycle. Same 6-month lag rule for benefit eligibility.
- Contribution period: 1 October - 31 March
- Benefit period: 1 July - 31 December of next year
- Monthly payment: by 15th of next month
ESIC FAQs
Who must register under ESIC in Maharashtra?
Any factory or notified establishment in Maharashtra with 10 or more employees earning up to ₹21,000/month gross wages must register within 15 days of becoming eligible. Coverage applies across Mumbai, Pune, Nagpur, Thane and other notified areas.
What is the ESIC wage ceiling in 2026?
The wage ceiling is ₹21,000 per month gross wages. For persons with disability, the ceiling is ₹25,000. Employees earning above the ceiling are not covered (they typically rely on employer-provided health insurance).
What happens when an employee crosses the ₹21,000 ceiling mid-year?
The employee remains covered for the rest of the contribution period (April-September or October-March), even if wages exceed ₹21,000. They exit coverage at the start of the next contribution period if wages stay above the ceiling.
When are ESIC contributions due?
By the 15th of every month for the previous month's wages. Monthly e-challan and return are filed on esic.gov.in. Late payment attracts interest of 12% per annum plus damages.
Is ESIC mandatory if we already provide private health insurance?
Yes. ESIC is a statutory scheme. Employers cannot opt-out by offering private insurance. ESIC and private health cover can coexist, but the statutory contribution is mandatory for covered employees.
What if a daily-wage worker earns less than ₹176/day?
Workers earning below ₹176/day are exempt from the employee share. The employer still pays the 3.25% employer contribution on those wages.
How does an insured person claim ESIC medical benefit?
The insured person uses their ESIC e-Pehchaan card or Aadhaar-linked ESIC ID at any ESIC dispensary or empanelled hospital. Treatment is cashless for both the insured and their declared family members.
What are the penalties for not registering or late payment?
Late payment attracts 12% p.a. interest on the unpaid amount plus damages of 5-25% based on delay. Non-registration can attract imprisonment up to 2 years and fine under Section 85 of the ESI Act.
Related Maharashtra guides
Auto-file ESIC monthly, on time
factoHR payroll auto-calculates ESIC on gross wages, generates the monthly challan, validates the contribution against wage ceiling rules and submits before the 15th. No interest, no damages, no missed cycles.