The ESI Act 1948, encompasses certain health-related eventualities
that the workers are generally exposed to; such as sickness, maternity,
temporary or permanent disablement, Occupational disease
or death due to
employment injury, resulting in loss of wages or earning capacity-total
or partial. Social security provision made in the Act to counterbalance
or negate the resulting physical or financial distress in such
contingencies are thus, aimed at upholding human dignity in times of
crises through protection from deprivation, destitution and social
degradation while enabling the society the retention and continuity of
socially useful and productive manpower.
The Employees' State Insurance Act 1948 (the ESI Act) provides for
medical, cash, maternity, disability and dependent benefits to the
Insured Persons under the Act. The ESI Act is administered by Employees'
State Insurance Corporation (ESIC). Benefits provided under the ESI Act
are funded by the contributions made by the employers and the
employees.
The Government of India in its pursuit of expanding the Social
Security Coverage to more and more people started a programme of special
registration of employers and employees from December, 2016 to June,
2017 and also decided to extend the coverage of the scheme to all the
districts in the country in a phased manner. The wage ceiling of
coverage was also enhanced from Rs. 15,000/- per month to Rs. 21,000/-
from 01.01.2017.
Current ESIC contribution Rate:
- Employers' share: 3.25%
- Employees share: 0.75%
Changes in ESIC with effect from 1st October, 2019
- Employees must be registered online on the date of appointment; the
online system shall allow maximum 10 days to register the new employee.
- Employee will have to collect their Biometric ESI Permanent Card from the nearest Branch Office.
- Contribution against employee must be deposited within the due
date. You shall not be able to deposit contribution online after 42 days
from the end date of the contribution period.
- Employee whose per day salary is Rs. 176/- or less need not to pay
Employee's contribution and the same will be paid by Govt. However, the
Employer will have to pay their share of contribution.