What Is ESIC?

what is ESIC? Is it compulsary. how it is calculated.i have done my MBA in Hr so i just wanna to know about ESIC , can anyone of u hepl me out

1. Sir, I will suggest you to please read necessary literature, viz. ESI Act, 1948 and rules, regulations framed thereunder and also the material on social security. You can download some of material from the website of ESIC.
2. After going through all such material, if still you have any doubt, you can raise in this cite by indicating the doubts or clarifications in brief. ESIC and social security is a vast subject, and it is difficult to indicate the same in a para or in few paras.

Employee state insurance corporation act1948 is social security act in which govt provides medical facilities to the employee.primarily it is applicable to employee (On roll as well as contract)having salary less than Rs15000 p. m. the organisation which provide their own medical facilities are exemted from this act like Psu.the employee 's contribution is 1.75 and employer's contribution is 4.75 of salary(gross).
I suggest you to pls read Taxmann's labour law.it is quite helpful for MBA level.

It is a social security sachem. in this scheme insured person will get medical benefits for him as well as for his dependents. Only those employees covered under this scheme whose salary is less than 15000/- per month. in this scheme employee have to contribute 1.75% and employer contribute 4.75% share every month.

Calculation of ESI can be done in following way
Employee State Insurance Act, 1948:
 ESI : Employee State Insurance is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 15000/-per-month (w.e.f 2010) and Employer contributes 4.75%
on the gross salary of the employee and the aggregate 1.75% + 4.75% is remitted to the
ESI Department.
4.75% of gross salary (Employers contribution) +1.75% of gross salary (Employees Contribution)
Note: The person who r getting more above 15,000 Gross salary, is not applicable for ESI Act
Example:
Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.
Juin

you are most welcome Mr. Ikash.
Regards
Dr. (Ms) Juin Choudhury