Employee State Insurance (ESI) is a government compliances of companies to help their employees. Our cloud PaaS platform thelegal bank provides the complete ESI registration and compliance for your company or business. ESI plan is a contributory reserve that empowers Indian representatives to exploit self-financing and human services protection stores contributed by the worker and the business.
ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law smaller than the Ministry of Labour and Employment, Government of India.
This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC. Workers' State Insurance Corporation ("ESIC") is a statutory corporate body set up under the ESI Act 1948, which is in charge of the organization of ESI Scheme. The ESI plan is a self-financed far-reaching government disability plan contrived to secure the workers secured under the plan against monetary trouble emerging out of occasions of ailment, disablement or death due to employee injuries.
The ESIC has its headquarters at New Delhi besides 23 regional offices, 26 sub-regional offices in the states and over 800 local offices throughout the country to support the implementation of ESI scheme. In addition, the Medical Benefit Council, a specialized body that advises the ESIC on the administration of Medical benefit is functioning.
Composition of ESIC
The ESIC generally consists of the following members as explained below.
The ESI plan is pertinent to all production lines and different foundations as characterized in the Act with at least 10 people utilized in such foundation and the recipients' month to month pay does not surpass Rs 21,000 are secured under the plan. Whether the employer has employed 10 or more employees, all employees employed by the employer, agnostic of the salary are reckoned.
The applicability of the scheme is explained through a flow chart below:
The scheme under the act also supports restaurants, motor road transports, newspaper establishments and undertakings, movies and purview theatres, hotels, shops.
The threshold for coverage of establishment is 20 employees in Maharashtra and Chandigarh.
Highlights of the plan Complete medicinal consideration and consideration are given by the plan to the representative enlisted under the ESI Act, 1948 at the season of the inadequacy restoration of his health and working capacity. During absenteeism from work due to illness, maternity or factories accidents, which result in loss of wages complete financial assistance, is provided to the employees to compensate for the wage loss. The scheme provides medical care to family members also. As on 31 March 2017, 2.93 crore employees are covered under this scheme with the total number of beneficiaries summing up to 12.40 crores. Broadly, the benefits under this scheme are categorized under two categories, 1) cash benefits (which includes sickness, maternity, disablement (temporary and permanent), funeral expenses, rehabilitation allowance, vocational rehabilitation, and medical bonus) and, 2) non-cash benefits through medical care.
Entities covered under ESIC
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
The documents required for the registration are :
The benefits of ESI registration are offered by ESIC with efficient support of its large network of branch offices, dispensaries, and hospitals located all across India. Broadly, the major welcome benefits to the contributing employees cover the following:
An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.
Yes, it is mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.
Every employer covered under this act has to comply with various compliances such as deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership and the management, maintenance of registers and records etc.
No, right to receive any benefits under this act is not transferable.
It is a 17-digit unique identification number allotted to every registered establishment. This number is generated through the ESIC portal on submission of the required information by the employer or generated on receipt of a survey report from the Social Security Officer.
Yes, it is the statutory responsibility of the employer register their Factory/ Establishment under the ESI Act within 15 days from the date when the act becomes applicable to them.
Contribution will be paid for an employee in to a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.
An employer who doesn’t pay the contribution within the time limit, will be liable to pay simple interest at the rate of 12% per annum for each day of default or delay in payment of contribution.
Registration is the process of recording information about the entry of an employee into insured employment, under the Act.
The scale of medical benefit includes a complete medical treatment from start to finish.
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