ESI (Employee State Insurance) provides medical benefits to Indian employees, including healthcare services, sickness and maternity benefits, and coverage for work-related injuries and disabilities.
Maternity benefit is a form of social protection that provides financial support to employed women during their pregnancy, childbirth, and postpartum period, ensuring their well-being and parental rights.
Dependent benefit refers to financial assistance provided to dependents of an insured individual, typically in the event of the insured person's disability, death, or other circumstances leading to a loss of income or support.
ESI Disablement Benefit is a form of compensation provided to insured individuals who suffer a permanent or partial disability due to work-related injuries or occupational diseases, ensuring financial support and rehabilitation.
Sickness benefit is also provided to the insured employees in the form of cash compensation. At the rate of 70% of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year by Employees State Insurance Corporation.
The ESIC ensures unemployment allowances equal to 50% of wage for up to 1 year and medical care for self and family from ESI Hospitals in case of permanent invalidity due to a non-employment injury or involuntary loss of employment.
Other benefits offered to employees by ESIC include funeral expenses compensation, physical rehabilitation, vocational rehabilitation, old age medical care, etc.
The Employees’ State Insurance (ESI) Scheme is one of the most popular schemes amid employees engaged in various economic sectors in entire India. This ESI scheme is administered and regulated by an autonomous and self-financing social security and labor welfare organization named ESIC, strictly as per the rules and regulations given in the Indian ESI Act of 1948.
An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.
Currently the employee’s contribution rate towards ESIC (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.
It is the statutory responsibility of the employer under Section 2A of the Act read with Regulation 10-B, to register their Factory/Establishment under the ESI Act within 15 days from the date it crosses the employee threshold of 10.
Employees whose monthly wages are Rs 21,000 or below are covered under the ESI Act. The wage limit for coverage under the Act had been increased from Rs 15,000 per month to Rs 21,000 in December 2016.
Once the unit is registered under the ESIC act is allotted 17 digits unique identification number, also known as ESIC Code.
The employer needs to pay ESI return on a monthly basis, and the due dates are also fixed as follows:The due date for ESI return filing is 15th of subsequent month.
Attendance register
Register for Form 6
Register of wages
Register of any accidents on the premises
Inspection book
Monthly challans and returns submitted for ESI
No. The benefits to insured employees are non-transferable.
The employer is liable to pay a simple interest of 12% per annum each day of default in making contribution payments.
Address proof and PAN Card of the business establishment or company.
Canceled cheque.
All the Directors’ or Partner or Proprietor Pan, ID Proof & Address Proof.
Partnership Deed and incorporation certificate.
All Directors’ DIN.
Address proof of the company(Telephone bill, Bank statement).
Employee’s detail along with their monthly compensation.
Nature of work.
DSC of the Authorized signatory and name, mobile no., mail id.
Any other registration copy (GST, Service tax, Shop and Establishment, TIN, etc…).
One can check the ESIC status by visiting to website ‘Portal Application ESIC’. A window of Employee’s portal is displayed. The user has to fill his ESIC insurance number i.e. IP number to know the status.
In the case of a manufacturing facility, any of the following:
Owner;
Occupier;
Managing Agent of the proprietor or occupier;
Legal representative of a deceased owner or occupier;
Manage r of the factory underneath the Facto ries Act, 1948.
In the case of Establishments belonging to or underneath the manage of Government of India:
