Employee State Insurance is one of the important social security program established by Government. Enrolling for ESI ensures that the Employees are insured from any health related eventualities which may arise to them either in the course of their work or else where.
ESI is beneficial for both Employer & Employee. The Benefits of ESI are far more than one can imagine. The Benefits are listed on the website http://www.esic.nic.in/benefits.php
To Enjoy benefits of ESI the EMPLOYER has to get his premises registered to the local ESI office. One can also get registration online by logging on to www.esic.nic.in
During the Registration the Employer will have to furnish details regarding where his Establishment is located, its organizational set up whether it is Individual, Firm, Company or Society. Another important information asked is the date from which you want to get registered or the date from which the Establishment is started.
After completion of all forms the ESI will allot a unique User name & password for the employer & unique IP (insured person) number for the employees , through which you can log on to the www.esic.nic.in & pay your ESI dues.
To be eligible for ESI, the establishment must have minimum of
10 employees – Non Seasonal Factories
20 employees – Shops, Restaurants, cinemas, Road-motor transport & newspaper establishment
Employees drawing wages above Rs 15000/- per month are excluded from ESI & only employees below the threshold limit are only entitled to ESI benefits
Employer Contribution – 4.75% of wages
Employees Contribution – 1.75% of wages
Employees earning Rs 100 per day are exempted from payment of their share of contribution
Payment of ESI
Employer has to monthly deduct from the wages of employees, their contribution & add their share & deposit the total to the ESI department. The ESI contribution should be paid within 21 of next month.
The ESI of particular month should be paid within 21st of next month. This is a statutory payment & the employer has to compulsorily pay it.
Non Payment of ESI attracts Interest at the rate of 12%
Accrual of Benefit
The ESI benefit will not start immediately. The table gives below the time from which the ESI benefit will accrue to employees
|Contribution Period||Cash Benefit Period|
|1st April to 30th September||1st January of following year to 30th June|
|1st October to 31st March||1st July to 31st December|
As one can see that cash benefit will accrue after 1 year of contribution.
Half yearly returns have to filed on the following dates
April to September – 11th of November
October to March – 11th of May