ESI
Employee State Insurance
Employee State Insurance
Employees' State Insurance Scheme of India is a multi-dimensional Social Security Scheme tailored to provide Socio-economic protection to the 'employees' in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
Who has to get registered under the Employees Provident Fund Act?
All business or establishments employing 10 or more persons during any part of the year has to get themselves registered under Employee State Insurance (ESI) Act. The ESI coverage extends to all the employees who earns a monthly salary upto Rs. 21 000/-.
Is it compulsory for the business establishments to register under the Act?
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 to them.
What is the Present Rate of Contribution?
- Employer's contribution: A sum equal to 3.25% of the wages payable to an employee.
- Employee's contribution: A sum equal to 0.75% of the wages payable to an employee.
Can an establishment once covered go out of coverage if the number of persons employed therein goes down to the minimum limit prescribed?
Once a factory or an Establishment is covered under the Act, it continues to be covered notwithstanding the fact that the number of persons/ coverable employees employed therein at any time falls below the required limit.