How Can I Introduce the ESIC Scheme for 600 Employees Earning Under Rs. 15,000?

Dear All,

My company has more than 600 employees, but we don't have the ESIC scheme even though 80% of employees' salaries are less than Rs. 15,000. I've recently joined and would like to introduce the system. Please guide me through the complete procedure step by step.

Regards,
Suman

Dear Suman,

Determine Your Unit's Status

First, you have to decide whether your unit is in the implemented area or not. If your unit is in the implemented area, immediately apply for ESI by submitting Form-01 (which can be downloaded from the site ESIC - Headquarters' Office) along with necessary documentary evidence, wherever needed, to the concerned Regional Office. You will then be allotted a 17-digit ESI Code No. for your unit, which is a permanent number for your unit.

Register Your Employees

Once your unit gets the ESI Code No., the next duty is to register your employees. You have to submit the Declaration Forms for all your employees who are drawing ₹15,000 or less, whether they are temporary, casual, permanent, daily, etc., to the concerned Branch Office. The Branch Office will allot Insurance Nos. to all employees and provide a temporary card, valid for 3 months from the date of their appointment. If they exceed 3 months, you can request a permanent card. Every month, from the data of attendance and wages registers, you have to maintain a Register of Employees under the ESI Act, i.e., Form-6. Based on it, you have to pay the ESI Contribution every month before the 21st of the following month. Every 6 months, you must submit Half-yearly returns, Form-5, to the concerned Branch Office. Every year, you have to submit annual returns on or before the 31st of January in Form-01(A).

Maintain Required Records

Under the ESI Act, you have to maintain the following records:

• Attendance Register
• Wages Register
• Form-6 Register
• Accident Register
• Inspection Book
• File containing all your monthly challans & returns submitted

Apart from the above registers, you are bound to produce the following records on demand to the Insurance Inspector during his inspection: All books of accounts, such as P&L Account, Balance Sheet and its annexures; Cash Book/Bank Book and all related Bills & Vouchers, etc. Further, if you have any immediate employers, such as contractors or security personnel, you have to confirm their compliance under ESI before settling their monthly bill. As the Principal employer, you will be held responsible for their default.

I think you might be getting bored with such a lengthy post; hence, I am stopping for now.

In case of any doubt, don't hesitate to call me at [Phone Number Removed For Privacy Reasons] or email me at [Email Removed For Privacy Reasons].

If you are knowledgeable about ESI, then your employees and their families will benefit from such a wonderful social security scheme.

All the best.

Regards

Thank you very much. It is really a great help for me. I shall follow the system as you have guided me. Also, I might disturb you over the phone with your kind permission. Once again, thanks. I'm sure this is going to help many.

Regards,
Suman.

Thank you very much for the nice and detailed information about ESI. The way both Syam Prasad and Ahmed explained it is truly awesome and easily understandable. I have learned a lot of new information about ESI; once again, I would like to thank you very much. I kindly request both of you to share your knowledge on statutory compliances, as it would be helpful to all.

Regards,
Sravan

Could anyone please inform me about the sub-code of ESIC? We have an ESIC code registered for our corporate office in Mumbai. We are a construction company that employs a significant number of contract workers at various units and project sites in India. One of our projects in Maharashtra state has recently come under ESIC coverage. Now, we need to process ESI for all our employees and contract laborers. However, we are confused as we already have an ESIC code. Will this be sufficient for all ESI processes for the specific project individuals, or do we need to obtain a separate registration for this site/unit?

If it is clarified that we must obtain separate registration by applying to the state ESIC authority, what will be the basis for registration? Should we obtain a sub-code based on the existing one or as a separate entity? I would like to note that our corporate office is in Mumbai (M.H), and the project site is located in Maharashtra state, District Nagpur.

Kindly provide suggestions and guidance.

Thank you.

Regards,
Madan