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ESI COMPLIANCES

ESI COMPLIANCES

EMPLOYEES’ STATE INSURANCE (ESI)

The enactment of Employees’ State Insurance Act, 1948 anticipate an integrated need based on social insurance scheme that would protect the interest of workers in crises such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury leading to loss of wages or earning capacity. The Act also guarantees to render fairly good medical care to workers and their immediate dependants.

The Act was originally applicable to those non-seasonal factories using power and employing 20 or more persons; but it is now applicable to all non-seasonal power using factories employing 10 or more persons and all non-power using factories employing 20 or more persons.

 

CONTRIBUTION UNDER ESI:

E.S.I. 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 .

The contribution payable to the Corporation in respect of an employee shall include the employer’s contribution and employee’s contribution at a prescribed rate. Revisions in rates are made from time to time.

Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period.

Employees in receipt of a daily average wage up to Rs.50/- are granted exemption from payment of contribution. However, employers will not get such exemptions from their contribution in respect of these employees.

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