Employees' State Insurance Corporation (ESIC) Act Overview

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The Employees' State Insurance Corporation (ESIC) is a statutory body established under the Ministry of Labour and Employment, Government of India. It administers the Employees' State Insurance (ESI) scheme, which provides socio-economic protection to workers and their dependents in case of sickness, maternity, disability, and death due to employment injury.

The Employees' State Insurance Act, 1948, is a significant piece of legislation aimed at providing social security to employees in India. It lays down the framework for the ESI scheme, ensuring that workers are covered against health-related contingencies.

     1. Applicability:

• The ESIC Act applies to factories and other establishments employing 10 or more persons.
• It covers all employees earning a monthly wage up to a certain threshold, as specified by the government.

     2. ESI Scheme:

• The ESI scheme provides comprehensive social security benefits, including medical care, cash benefits during sickness and maternity, monthly pensions for dependents in case of death due to employment injury, and compensation for occupational injuries and diseases.

     3. Contributions:

• Employer Contribution: Employers contribute is 3.25 percentage of the employee's  gross wages.
• Employee Contribution: Employees also contribute is 0.75% percentage of their gross wages.
• The current contribution rates are subject to change as notified by the government.

     4. Benefits Under the ESI Scheme:

• Medical Benefits:
  • Full medical care for insured persons and their families.
  • Includes outpatient care, hospitalization, and specialized medical services.
• Sickness Benefits:
  • Cash compensation during periods of certified sickness.
  • Provides financial support during medical leave.
• Maternity Benefits:
  • Paid maternity leave for insured women.
  • Covers pre-natal and post-natal care.
• Disablement Benefits:
  • Compensation for temporary or permanent disablement due to employment injury.
  • Includes both partial and total disablement.
• Dependent Benefits:
  • Monthly pension to dependents in case of death due to employment injury.
• Other Benefits:
  • Funeral expenses, vocational rehabilitation, and physical rehabilitation.
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     5. Administration and Compliance:

• ESIC Administration:
  • The ESIC is responsible for the administration of the ESI scheme, including the collection of contributions and disbursement of benefits.
• Employer Responsibilities:
  • Employers must register their establishments under the ESI Act.
  • Ensure timely payment of contributions and maintenance of accurate records.
• Employee Registration:
  • Employees receive an ESI card, which is required to avail benefits.
    

At Statutorysolution, we offer comprehensive ESIC consultancy services to ensure your business remains compliant with all ESIC regulations. Our services include:

• ESI Registration: Assistance with registering your establishment under the ESI Act.
• Contribution Management: Ensuring timely and accurate contribution submissions.
• Compliance Audits: Regular audits to ensure compliance with ESIC rules.
• Grievance Redressal: Support in resolving any issues related to ESI contributions and benefits.

By partnering with us, you can focus on your core business activities while we handle all aspects of your ESI obligations.

For more information or to schedule a consultation, please contact us at info@statutorysolution.com.