ESIC returns is required to half yearly. i.e. for the period of April to September by 12th Nove...
Employee State Insurance (ESI) is a self-financing social security plan and health insurance scheme for Indian workers. It is governed by the ESI Act 1948. Funds under ESI are managed by the ESI Corporation which comes under the Ministry of Labour And Employment.
ESI Registration is required to get mandatorily done when the employers are having more than 10 employees but it applies to employees with low earnings. As per the act, all employees whose earnings are INR 15000 or less per month, it is required for them to contribute 1.75% of their pay towards the ESI and 4.75% by the company towards ESI. This scheme provides various benefits related to medical benefit & cash benefit to the employees and their families such as a large network of hospitals, dispensaries all over the country for effective medical treatment. Medical treatment includes surgical treatment, the supply of drugs, ambulance services in addition to this it also provides sick pay benefits. This scheme improves the morale of workers. It provides social protection to the employees in the business.
|Employee’s Contribution||1.75% of the compensation|
|Employer’s Contribution||4.75% of the Compensation|
The employer is liable to pay a contribution of employees and deduct a contribution of employees from their wages and have to pay these contributions to the ESI Corporation on the specified rates within 21 days from the last day of the month.
The Corporation has the designated branches of the banks to receive the payments.
|Contribution Period||Cash Benefit Period|
|1st April to 30th September||1st January of the following year to 30th June|
|1st October to 31st March||1st July to 31st December|
As per the act, the existing limit is Rs. 15000/ Per Month. ESI contribution is required for all the employees earning up to 15000 Per Month.
All those employees who are earning more than 21000 Per Month are exempted from the ESI contribution.
The ceiling for an employee with a disability is Rs. 25000/ – Per Month.
|Period of Delay||Rates|
|Less than 2 months||5%|
|2 to 4 Months||10%|
|4 to 6 Months||15%|
|6 Months and above||25%|
The employer is required to maintain the following registers:
For the immediate employer, it is required to maintain a register of employees to the principal employer.