{"id":4550,"date":"2026-05-29T22:06:44","date_gmt":"2026-05-29T22:06:44","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4550"},"modified":"2026-05-30T02:53:12","modified_gmt":"2026-05-30T02:53:12","slug":"esi-employee-state-insurance-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/esi-employee-state-insurance-zoho-payroll\/","title":{"rendered":"ESI (Employee State Insurance)"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Employee State Insurance (ESI) in Zoho Payroll is the social security and health insurance scheme administered by the ESIC under the Employees&#8217; State Insurance Act, 1948. Employees earning up to Rs 21,000 per month gross (Rs 25,000 for persons with disability) are covered. The employee contributes 0.75% and the employer 3.25% of ESI gross wages. ESI provides medical benefits, sickness benefit, maternity benefit, and disablement benefit.<\/div>\n<div class=\"gt-section\">\n<h2>ESI Gross Wages and Eligibility Check<\/h2>\n<p>ESI gross wages include all salary components except washing allowances and the employer&#8217;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&#8217;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).<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>ESI Challan and ESIC Filing<\/h2>\n<p>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&#8217;s insurance number, gross wages, employee contribution, and employer contribution. This data feeds into the monthly ESIC challan payment and half-yearly return filing.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>ESI and New Joiners or Exits<\/h2>\n<p>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.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee earns gross Rs 18,000 per month. Employee ESI = 0.75% x Rs 18,000 = Rs 135. Employer ESI = 3.25% x Rs 18,000 = Rs 585. Total ESI = Rs 720 per month. Zoho Payroll computes both, deducts Rs 135 from net salary, and includes Rs 720 in the ESIC challan report.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/pf-provident-fund-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">PF<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gross-salary-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Gross Salary<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/salary-structure-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Salary Structure<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/payroll-report-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Payroll Report<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is ESI in Zoho Payroll?<\/strong><\/p>\n<p>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.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How does Zoho Payroll determine ESI eligibility each month?<\/strong><\/p>\n<p>Zoho Payroll checks each employee&#8217;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.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>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.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"ESI (Employee State Insurance) | Zoho Payroll Glossary","seo_description":"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%","seo_keyword":"esi (employee state insurance) zoho payroll","seo_faqs":"[{\"q\": \"What is ESI in Zoho Payroll?\", \"a\": \"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. 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Zoho Payroll manages these transitions automatically.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4550","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4550"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}