ESIC (Employees' State Insurance Corporation) is a statutory deduction for employees whose gross salary is ₹21,000 or less. To obtain ESIC registration, a company or firm must have a minimum of 10 employees on any given day. ESIC contributions are calculated based on the employee's gross salary: 1.75% is deducted from the employee’s salary, while the employer contributes 4.75%, totaling 6.5% of the gross salary.