Understanding ESI

ESI is a Social Security plan that is designed to provide subsidized or free medical assistance to employees and their dependents during the course of their employment, or if an employee becomes unable to work due to specific circumstances. With Global Payroll for India, you can register payees under an ESI program and process the appropriate deductions during the normal payroll cycle.

With Global Payroll for India you can:

  • Ensure that all of the payees are registered per the ESI Act and capture beneficiary information.

  • Ensure that the deductions for contributions from payees are deducted from their pay each month.

Note: Enrolling payees in ESI is a manual process. The human resources department should ensure that the appropriate payees are enrolled in the ESI program.

Note: The PeopleSoft system delivers several queries that enable you to retrieve ESI information.