Employee State Insurance
Coverage - The Act is applicable to non-seasonal factories using power and employing 10 or more persons and non-power using factories employing 20 or more persons.
Earning Wages Limit - Gross Salary Rs. 10,000/- w. e. f. 01.04.2006.
Contribution:
- By Employer @ 4.75%
- By Employee @ 1.75%
Registration and Number Allotment - Duly filled Form-01. For Employees, Form 01 & Declaration Form no. 03 within 10 days of joining, keeping one copy of Form-3 for record.
Identity Cards: Form 4 will be issued by the ESI Office.
Register for ESI Record: Every employer shall maintain a register in Form-6 as prescribed in rule-32.
Contribution Periods:
- 1st: 1st April to 30th September
- 2nd: 1st October to 31st March
Challans Deposit: Deposit in the bank by the 21st of every month.
Returns of Contribution: On Form no. 5 in quadruplicate with six Challans within or before 11 May & 12 Nov of every year, certified by the Chartered Accountant if the members are 40 or more w. e. f. 01.04.2008.
Special Provision:
(i) Within 42 days of the termination of the contribution period it relates to.
(ii) Within 21 days of the date of permanent closure of the factory.
(iii) Within 7 days of the receipt of a requisition from the appropriate office.
Notice of Accident: As soon as possible after the accident.
Maintenance of Accident Book: Form-15 for any injury to an insured person.
Report to Accident:
1. Immediately for serious injuries likely to cause death, permanent disablement, or loss of a member.
2. In any other case within 24 hours after receiving notice of the accident.
3. If the injury results in death at the workplace, report to IMO and Local Office promptly.
Every employer shall send a report in Form-16 to the nearest Local Office and IMO in triplicate.
Benefit Period: The first benefit will be from the corresponding period of joining insurable employment.
Sr. No. To be Deemed as Wages Not to be Deemed as Wages
1. Basic Allowance Contribution paid by the employer on any pension/PF or ESI.
2. Dearness Allowance Daily Allowance paid for the period spent on tour.
3. House Rent Allowance Encashment of leaves.
4. City Compensatory Allowance Washing Allowance.
5. OT Wages Amount towards reimbursement for duty-related journeys.
6. Production Incentive Gratuity payable on discharge.
7. Payment for the day of rest Benefit paid under ESI.
8. Night Shift Allowance Payment of Inam not part of the employment terms.
9. Meal/Food Allowance
10. Suspension Allowance
11. Conveyance Allowance
Damages or Contribution or any other amount due but not paid on time:
Sr. No. Period of Delay Maximum Rate of Damages in % per annum of the amount due
1. Less than 2 months 5%
2. Greater than 2 but less than 4 months 10%
3. Greater than 4 but less than 6 months 15%
4. Greater than 6 months 25%
Penalties: Different punishments are prescribed for various offenses under section 85:
(i) Six-month imprisonment and a fine of Rs. 5000/-
(ii) One-year imprisonment and a fine
Under section 85-A:
(i) Five-year imprisonment and not less than 2 years
Under section 85-C(2) of the ESI Act, which are self-explanatory.
Besides these provisions, action can also be taken under section 406 of the IPC in cases where an employer deducts contributions from employees' wages but does not pay them to the corporation, amounting to criminal breach of trust.