Contribution is the amount payable to the Corporation by the Principal Employer in respect of an employee and comprises the amount payable by the employee and the employer.
It is obligatory on the part of the employer to calculate and remit ESI Contribution comprising of employers’ share 4.75% plus employees’ share of 1.75% which is payable on or before 21st of the following month, to the month to which the salary relates. If the employee is drawing upto Rs.50/- as daily average wage, he is exempt from the payment of his share of contribution. The employer is however to pay employer’s share of 4.75% of the salary received/receivable by the employee.
Recovery of contribution