ESI in Zoho Payroll is the statutory health and social security scheme for employees earning up to Rs 21,000 per month, with employee contribution at 0.75% and employer at 3.25% of ESI gross wages.
ESI gross wages include all salary components except washing allowances and the employer’s PF contribution. The eligibility threshold is checked each month based on gross wages. Zoho Payroll automatically includes or excludes employees from ESI computation based on their monthly gross. If an employee’s salary increases above Rs 21,000 mid-contribution period, they remain ESI-eligible for the remainder of that contribution period (April-September or October-March).
ESI contributions must be deposited with ESIC by the 15th of the following month. Zoho Payroll generates the ESIC challan data after each pay run, showing each employee’s insurance number, gross wages, employee contribution, and employer contribution. This data feeds into the monthly ESIC challan payment and half-yearly return filing.
New employees earning below Rs 21,000 are enrolled in ESI immediately. Employees who consistently earn above Rs 21,000 for two consecutive months become ESI-exempt from the start of the next contribution period. Zoho Payroll manages these transitions automatically, removing or adding employees to ESI computation based on their gross wages history.
ESI (Employee State Insurance) in Zoho Payroll is the mandatory health and social security contribution for employees earning up to Rs 21,000 per month gross. The employee contributes 0.75% and the employer 3.25% of ESI wages. Zoho Payroll computes eligibility and contributions automatically each month and generates ESIC challan data.
Zoho Payroll checks each employee’s gross salary every month. Employees earning up to Rs 21,000 are included in ESI computation. Those exceeding the threshold mid-contribution period continue under ESI until the end of that period (April-September or October-March). Zoho Payroll manages these transitions automatically.
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