Who has to register under Employee State Insurance (ESI)

It is a comprehensive Social Security Scheme designed to accomplish the task of protecting the ‘employees’ in the organized sector against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.

Who has to register under Employee State Insurance (ESI)
All establishments employing over 10 employees at any point of the year has to get registered under ESI Act, provided the salary payable to at least one employee is less than Rs.15000. In other words, the establishments paying salary of over Rs.15000 per person per month is not covered under this Act, even if the total employees exceed 10.

Is it mandatory for the company is register under ESI?
Yes. It is the statutory responsibility of the employer under Section 2-A of the Act to register the Factory/Establishment under the ESI Scheme within 15 days from the date of its applicability to them

Whether educational institutions are covered under ESI?
Yes. ESI is applicable to private medical and educational institutions employing over 20 people.

How to register for ESI
One has to apply online through departmental portal

How much contribution is to be made?
Currently, the employee’s contribution rate is 1.75% of the salary and that of employer’s is 4.75% of the salary paid per month.

Who is liable to collect and pay ESI contribution?
An employer is liable to pay his contribution in respect of every employee and deduct employee’s contribution from salary and pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due.

What are the benefits of ESI?
Full medical care is provided to an Insured person and his family members from the day he enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/-. Secondly, Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. There are other benefits such as disablement benefit, maternity benefit, funeral expenses upto Rs.10000, etc.

In case you need any further information or help in registration under the scheme, may contact us at teams@simplifiedlaws.com

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