Under Chapter IV of the Code on Social Security, 2020, the Employees' State Insurance (ES

Solution

Chapter IV of the Code on Social Security, 2020 applies to establishments employing 10 or more persons for the ESI scheme. The wage ceiling for ESI applicability has been rationalised to ₹21,000 per month workers earning up to this threshold are eligible for ESI benefits including medical care, sickness benefit, maternity benefit, disablement benefit, and dependants' benefit. For workers employed in hazardous or dangerous industries, the wage ceiling is ₹25,000 per month. ESI is administered by the Employees' State Insurance Corporation (ESIC), a statutory body constituted under the Code. The employer's contribution rate is 3.25% of wages and the employee's contribution is 0.75% of wages employees earning wages up to ₹176 per day are exempt from contributing to ESI. The Code also empowers the Central Government to extend ESI to any other establishment or class of establishments in any part of India, beyond the initially notified categories.