Setting up ESI for your Organization

EMPLOYEE STATE INSURANCE

ESI setup

👥 WHO USES THIS

▸Payroll admins onboarding ESI

▸Finance registering ESI codes

▸HR mapping eligible employees

✨ WHAT YOU'LL ACHIEVE

▸Register ESI establishment codes

▸Configure wage ceilings and rates

▸Enable location-based applicability

Navigate to Tax and Statutory Compliance → Statutory Components → Insurance.
Select the Insurance Configuration tab and then click the Edit icon.
The ESI employer contribution rate, employee contribution rate, and the monthly salary eligibility limit are pre-defined in accordance with statutory regulations.
You can also select whether to allow overriding the ESI contribution rate at the employee level during salary configuration for that specific employee.
Additionally, you can enable Arrear ESI Calculation to include ESI contributions on arrears.

Fig: ESI-Insurance Configuration