The Act is extended in area-wise to factories using power and employing 10 or more persons and non-power using manufacturing units and establishments employing 20 or more persons up to Rs.15,000/- per month w.e.f 01.05.2010.
All Employees drawing wages / salary up to Rs.15,000/- per month engaged either directly or thru, contractor are covered under the scheme.
- 1st April to 30th September, and
- 1st October t 31st March
- ESI Scheme takes care of following needs of the members:
- Medical, sickness, extended sickness for certain diseases, enhanced sickness, dependents maternity, besides funeral expenses, rehabilitation allowance, medical benefit to insured person and his spouse.
Scheme of Contribution:
Employer Share: 4.75%
Employee’s Share: 1.75% of wages/salary
Manner and Time Limit:
For making payment of contribution
The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorised bank through a challan in the prescribed form in quadruplicate on or before 21st of month following the calendar month in which the wages fall due.
- Basic pay
- Dearness allowance
- House rent allowance
- City compensatory allowance
- Overtime wages (but not to be taken into account for determining the coverage of an employee)
- Payment for day of rest
- Production incentive
- Bonus other than statutory bonus
- Night shift allowance
- Heat, Gas & Dust allowance
- Payment for un substituted holidays
- Meal/food allowance
- Suspension allowance
- Lay off compensation
- Children education allowance (not being reimbursement for actual tuition fee)
Maintenance of Register:
- Accident Register
- Inspection Register
Interest on contribution due, but not paid in time:
An employer who fails to pa contribution within the periods specified in Regulation 31, shall be liable to pay [simple interest at the rate of 12 per cent , per annum] in respect of each day of default or delay in payment of contribution.
Damages or contributions or any other amount due, but not paid in time:
An employer who fails to pay contribution within the periods specified under Regulation 31, or any other amount payable under the Act, shall be liable to pay damages as under:
Period of delay
Rate of damages in per cent per annum of the amount due