EMPLOYEE'S STATE INSURACNE ACT - 1948

Applicability:
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.
Eligibility:
All Employees drawing wages / salary up to Rs.15,000/- per month engaged either directly or thru, contractor are covered under the scheme.
Contribution Period:

  • 1st April to 30th September, and
  • 1st October t 31st March

Benefits:

  • 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.
Wages/Salary:

  • 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

  • Up to 2 months

5%

  • 2 months and above but less than 4 months

10%

  • 4 months and above but less than 6 monts

15%

  • 6 month and above

25%

.