Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons. Following entities employing ten or more employee are liable to get ESI registration done: Applicability of ESI and Its Coverage. In some states, the number of employees is 20. Any company having more than 10 employees will be applicable under the ESI act. However, the employee strength required for ESI registration for factories is 10 for PAN India. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods. In case a small Organization which has less number of employees than the stipulated number (less than 10 in Karnataka) is willing to Register itself and willingly follow the Rules, can this be done? Yes, late payment of ESI contribution will attract 12% interest per annum on the payable amount. The contribution rate given above is incorrect. Being so and so, it covers all the risk factors of the wage earners, drawing less than or equal to Rs 15,000 per month and of the employees working in an organized sector. Above mentioned entities, if employed ten or more employees at any time during the previous year shall mandatory take ESIC Registration. Coverage. Employees drawing the salary upto INR 21000/- per month is covered under this scheme. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. In other words, the ESI scheme applies to factories that employ 10 or more persons. ESI applicability is two step process: 1. DOCUMENTS FOR ESI RETURNS For filing ESI returns, the following documents must be maintained regularly; Employee’s Register for the employees sent to the principal employer. Following are the important benefits that employees can avail under ESI act, employees will be compensated for: Medical benefits which include free treatment are extended to the family members of the employee. Dear Aniket, Documents Necessary for obtaining ESI Registration APPLICABILITY. 5. Applicability of the ESI scheme The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries’ monthly wage does not exceed Rs 21,000 are covered under the scheme. thanks 50% to 90% injury or health cause is during company premises. Since 01/07/2019 the ESIC contribution rate has been decreased in total to 4%. Eligible employees and employers get various benefits under the ESI Act by contributing a portion of the employees’ salary towards ESI scheme. Get Started EPF Registration Applicability: Any organization having more than 20 employees mandatory to take EPF Registration. The Salary Limit keep is changed by Central Government from time ti time keeping in mind the inflation rate, economy growth and other indirect factors. 21000 from Rs 15000 per month with effect from 1st January 2017. relyonadmin June 19th, 2017 . Getting ESI Registration : Establishments or Factories must get themselves registered within 15 days of the Act becoming applicable to them by submitting an Employer’s Registration Form (Form-01) to the relevant Regional Office. 02 May 2013 ESI APPLICABILITY Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons. It is Statutory obligation of the employers on which ESI Scheme apply under the ESI Act, 1948 , shall comply the provisions of the Act and Register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability. All Rights Reserved. E.S.I. In addition, some of the need-based benefits: Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS. Your email address will not be published. ESI is managed by the Employee State Insurance Corporation - an autonomous body established under the Ministry of Labour and Employment, Government of India. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. For ESI act applicability, the sum of employees’ basic salary, dearness allowance and House rent allowance is considered. Dear Sir Furthermore, the applicability of this scheme has been extended to shops, hotels, restaurants, educational institutions, newspaper establishments, cinemas and private medical institutions since 2001. So that any employer falling into the eligibility can get its company/ factory/ establishment registered easily without physical papers submissions or visit to concerned ESIC office. By law, any company/ factory/ establishment that have more than 10 employees mandatorily need to have ESI. Employers will however contribute their own share in respect of these employees. The author shall not liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information. Insured ESI members retiring on account of permanent disabilities are also entitled to the same benefits. FAQ on ESIC Registration Is it mandatory for the Employer to register under the scheme ? The rates are revised from time to time. ESI eligibility criteria: That is, when employee is covered by ESI? The family of the deceased employee is entitled to an additional amount of Rs.10,000 towards funeral expenses. ESI members suffering from chronic diseases can avail the extended sickness benefit for upto 2 years, provided the sick leave of 91 days are expired. All such industries that are covered under the schedule I of the EPF Act, 1952 are liable to get registered in the EPF scheme if their employee strength is 20 or more, even for one month of a financial year. Yes, a private owned educational institutions and medical institutions are covered under this. Currently, the employee’s contribution rate (w.e.f. However, with the initiative by government for ease of doing business, a whole new online process is introduced, one can register under this by visiting www.esic.in. Applicability of ESI Scheme. 1. A./HRA/CCA/Overtime/officiating allowance /Night shift allowance/efficiency allowance/Heat, Gas, Dust allowance/Education allowance/Food & Tea allowance/conveyance allowance; Wages/salary/pay for weekly off and public holidays; Subsistence allowance paid to an employee during the period of suspension; Attendance Bonus or incentive or ex gratia in lieu of Attendance Bonus or production incentive; Regular Honorarium or salary or remuneration paid to a Director; Actual payments made towards leave Salary, lay off compensation, or wages for strike period. Every entity is required to complete ESI registration within 15 days from the date of applicability of the same. Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. However, with the initiative by government for ease of doing business, a whole new online process is introduced, one can register under this by visiting www.esic.in. Applicability & Contribution of ESI Registration Which employees are covered under ESI act? The ESI is a self-financed social security comprehensive scheme devised to protect the employees against financial distress such as sickness, disablement or death due to employment injuries. ESI will be calculated on the gross salary of employees. Furthermore, the ESI scheme applies to the following establishments, which employ 10 or more persons. As off – ESI registration is one of the most reliable, beneficial & mandatory scheme, run by the government of India! What is ESI Registration. Failing to obtain registration may lead to penal actions; hence adhering to the provisions of the Act is in the best interest of the concerned organizations. ESIC Registration. 1st Oct to 31st March of the year following. And if yes, what is the expectation after registration on the portal? Yes, 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 of its applicability. Once, the organization gets registered, a 17 digit unique identification code will be allotted to them.It is the statutory responsibility of the employer to get registered under this act after achieving the said employee level within 15 days. This benefit was introduced in 1976 as a measure to encourage ESI employees to undergo vasectomy or tubectomy for family welfare. ESI Registration ensures that employees enjoy the following advantages under the Employees’ State. Absence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages. ESI Contribution Details. Disclaimer:  The above article briefs the important highlights of main provisions of Employees State Insurance Act of 1948 read with Employees State Insurance (Central) Rules of 1950 and Employees State Insurance (General) Regulation of 1950. pvsmurthy. ESI deduction criteria. ESI Registration is applicable to the establishments which in an implemented area and having more than 10 employees. The Online Registration and Licensing facility on Shram Suvidha Portal is developed to facilitate Establishments, Contractors, Employers or Principal Employers to submit application for Registration/License under Labour Laws Online i.e, CLRA Act, EPF Act, ESI Act, BOCW Act, ISMW Act etc. ESI wage limit has been increased to Rs. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. ESI registration must be obtained by all employers required to deduct and remit ESI dues from employees. Extension of this benefit can also be availed in case of post-operative complications. What is the mode of payment of ESI contribution? As defined in the Employees' State Insurance Act, 1948, Employee State Insurance provides financial protection to employees against ailments, disablement or demise as a result of work injuries. The Maximum limit for salary is Rs.15,000/- (Fifteen thousand) after the EPF Deposit is … where number of employees are more than 20. There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under. 2. Whether ESI is applicable to Trusts? Employee share – 0.75% and Employer share – 3.25%. You are right, it was typing mistake, it is decreased to 4%. Applicability of the ESI scheme The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries’ monthly wage does not exceed Rs 21,000 are covered under the scheme. This scheme also includes restaurants and hotels engaged in sales, shops, theatres, Newspaper establishment, Private educational institutions. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital. Employee state insurance act 1948 is a social security scheme run by government of India and currently covers more than 2 crore employees and more than 7.5 crore of their family members. Trusts like Educational Trust, NGO Trusts etc is ESI applicable? It is the statutory responsibility of the employer under Section 2-A of the Act read with Regulation 10-B, to register the Factory/Establishment under the ESI Scheme within 15 days from the date of its applicability to them. In states of Maharashtra and Chandigarh, this limit is 20 members. ESI Registration is done through us. The Employer before taking into employment shall register the insurable employee on-line. The salary wage limit for ESIC scheme is 21000 Rs W.E.F 1 January 2017. Sir, It in your case, it will be applicable. In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf. ESI was originally applicable for factories that employed ten or more persons. The State Government concerned also contributes its share to meet the cost of Medical Benefit. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. ESI applicability criteria as per the ESI act is that any employee whose gross salary is up to Rs. Registered ESI members willing to undergo the sterilisation procedures are eligible for enhanced sickness benefit of 100% of their daily average wages. These esi registration highlights essentially cover the various benefits available to the employees and their respective family in certain cases. ESI online registration should be done as soon as the number of employees exceed ten and the salary drawn is less than Rs. The government has mandated registration under the Employees State Insurance Scheme for certain establishments to assist their employees & workers in meeting their expenses during greater needs of medical and other emergencies such as sickness, injury, maternity, disablement and after the death of the employee. Article explains about Applicability of Employee State Insurance Scheme, Employees Covered under ESI Scheme, Benefits of ESI Registration, Contribution under ESI Scheme and Registration under ESIC Scheme. As per section 2(12) of the ESI act, all factories where 10 or more persons are employed must be registered under the ESI act. If your organization normally does not employ more than 10 employees but in any particular month the employee strength was 10 or more, then also your business will covered under the ESI Act and you will be required to contribute. ESI Registration can be done through us in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities. ESI / PF Registration. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages. Eligible Entities for ESI Registration. (The Author is Corporate Consultant and provides varied array of services including Start-ups, Secretarial, Legal, Intellectual property, taxation, Audit, GST, Book keeping and other ancillary advisory service in Delhi, Chandigarh as well as The National Capital Region (NCR) and can be contacted through email id:- triptishakyacs2017@gmail.com). Available to employees in the case of physical disablement due to an employment injury or occupational hazards. ESIC; Focused on post Retirement Income and Benefits: ESI scheme is a healthcare: Employees complete 12% goes to PF account while employer contributions’ 8.33% goes to Pension Fund and 3.67% goes to PF Fund: It is deducted on a gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution. Have look on the list given statewise:-. Stipulations regarding registration under the ESI Act : Section 2A of the Act read with Regulation 10-B, lays down that every factory or establishment to which this Act applies shall be registered within 15 days from the date of its applicability and in such manner as may be … Join our newsletter to stay updated on Taxation and Corporate Law. Subsequently, the coverage of ESI scheme has been expanded. The entity shall have to apply for the registration within 15 days of the provisions of the act becoming applicable to them. Applicability of ESI Registration Which industries and businesses are covered under the EPF act, 1952? 6. Regards Pramod Kumar. Registration is the process of obtaining and recording information about the entry of an employee into 'insurable employment', for the purpose of his identification under the Act. The ESI Scheme is administered by a body called the ‘Employees’ State Insurance Corporation’ (ESIC), which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. Also, it is mandatory for the employees, labour workers etc having gross salary up to Rs.21000 under such type of industrial unit. How can employees get registered under the Scheme? This period can be extended by 30 days on medical advice. 21,000. The Director General is the Chief Executive Officer of the Corporation and is also Among other conditions, the criteria for eligibility for this benefit include that the concerned ESI member should have been working for at least 2 years at the onset of the sickness and its subsequent diagnosis. ESI Registration ESI or Employee State Insurance is a self-financing social security scheme in India. ESI Registration Requirement As per section 2 (12) of the ESI act, all factories employing 10 or more persons must get mandatorily registered under the ESI act. What all records an employer needs to maintain for ESI scheme. The ESI applicability is also to non-seasonal factories employing 10 or more persons and since 2011 it has been extended to shops, hotels, restaurants, … In order to submit a comment to this post, please write this code along with your comment: 26a671bc276672712916e667ba585dff. Esi contribution needs to be paid at the online ESIC portal for all the eligible employees in an organization. The ESI registration is permanent, and the 17-digit number being valid for a lifetime, new changes, such as employee additions in the organizations, needs to be stated to the ESI. Is it Mandatory for the employer to register under ESI Scheme? The act also extends its applicability to Foreign Companies located in India. ESIC requires registration by all companies/firms/organization where 10 or 20 employees, as required by law are employed. Whether Trusts will fall in the category of ‘Establishment’. Registration under ESIC Scheme. It will help you to understand the ESI applicability process. Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons. 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