Employee ESIC with physical disabilities till 25000 Gross limit Configuration process

Created by Yogashree MP, Modified on Tue, 5 May at 11:14 AM by Yogashree MP

As per ESI (Employees’ State Insurance) statutory compliance, the wage limit and applicability for employees with physical disabilities is different from normal employees

Wage Limit for ESIC Coverage:

Normal employees → Covered up to ₹21,000 gross per month
Employees with disabilities → Covered up to ₹25,000 gross per month

This ₹25,000 limit is specifically notified under ESI Rules for: Persons covered under Disability Acts.

The ₹25,000 limit is a special relaxation only for persons with disabilities
It is statutory and mandatory, not optional

Contribution Details (Current Rates) is same for both Normal Employee & Employee with Disability:

Employer contribution → 3.25%
Employee contribution → 0.75%

Practical HR/Payroll Interpretation

Category	ESIC Applicability
Normal employee ≤ ₹21,000	Applicable
Disabled employee ≤ ₹25,000	Applicable
Disabled employee > ₹25,000	Not applicable

Follow the Below mentioned steps to configure the ESIC Applicability for two scenarios:

STEP- 1: Create the new ESIC salary header for both Employee deduction & Employer contribution

Navigate to settings >> Staffing Master >> Salary Header >> Create New salary header for Employee ESIC & Employer ESIC.
Maintain the ESI gross limit to 25000 for employee physical disability and maintain 21000 ESI gross limit for normal employees. Hence configure the two separate ESIC salary header for normal employee & disability employee.
Create the two salary structure ( one is for normal employee with Normal ESIC gross header having limit 21k & another is for disability employee with ESIC gross header having limit 25k) with using ESIC salary header and map the employees accordingly .