A self-financing social security and health insurance scheme for Indian workers.

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1). Factories using power in the manufacturing process and employing more than 10 persons.
2). Non-power using factories or establishments employing more than 20 persons.
3). Employees who are salaried below 15,000INR.
1). ESI contribution needs not be deducted and pay the department if the employees is earning more the Rs.15000 p.m.
2). Not applicable for Seasonal factories/establishments.
1). Delay in Payment :
Penal damages will be calculated and to be paid to department for the no of days delay in deposit of ESI fund to the corporation
2). Basis of calculation of damages will be on period wise.
* False Statement: Imprisonment up to six months or penalty up to Rs.2000 or with both.
* Failure to contribute: Imprisonment up to 3 years or a penalty up to Rs.4000 or with the both.