Understanding the Latest ESI Rule Changes: What Do These Amendments Mean for You?

Dear friends, I am attaching copies of the following notifications for your information:

ESI (General) (Amendment) Regulations 2011
Applicable w.e.f. 1.5.2011

Following forms have been revised:
- Form-01 (Employers Registration Form)
- Form 1 (Declaration Form)
- Form 12 (Accident Report)

Further, as per the new Rule 10C, amendments in particulars furnished in Form 01 have to be intimated within 2 weeks of change.

ESI (Central) Amendment Rules 2011
Applicable w.e.f. 1.7.2011

Rates of various benefits changed.

Regards,

Re: Amendment to ESI Rules & Regulations from 1.5.11 and 1.7.11

Dear PC Agrawalji, thank you very much for your wonderful contribution.

Regards,
GJ Panchal

Dear Mr. P.C., I have some queries about the ESIC Act. They are as follows:

1. To which organizations is it applicable?
2. Is it mandatory for all organizations?
3. How many minimum number of employees should be there for the Act to be applicable?
4. General information about the applicability of the ESIC Act in a startup corporate?

I shall be grateful if you can advise on the same.

Thanks and Regards,
Nayana Joshi

Applicability of ESIC

Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.

Further, under Section 1(5) of the Act, the Scheme has been extended to private medical and educational institutions employing 20 or more persons in certain States/UTs.

*Note: 14 State Governments/UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month (w.e.f. 01/05/2010).

Areas Covered

The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of the Indian Union.

States

All the States except Manipur, Sikkim, Arunachal Pradesh, and Mizoram.

Union Territories

Delhi and Chandigarh

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Regards,

Here you can learn about the applicability of ESIC:

APPLICABILITY

Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas, including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.

Further, under Section 1(5) of the Act, the Scheme has been extended to private medical and educational institutions employing 20 or more persons in certain States/UTs.

*Note: 14 State Governments/UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month (w.e.f. 01/05/2010).

AREAS COVERED

The ESI Scheme is being implemented area-wise in stages. The Scheme has already been implemented in different areas in the following States/Union Territories of the Indian Union.

STATES

All the States except Manipur, Sikkim, Arunachal Pradesh, and Mizoram.

UNION TERRITORIES

Delhi and Chandigarh

Regards,
Imran Ansari
HR Executive

Amendment to ESI Rules - Rule 52:

Average Wage Limit Increased For Certain Cases Under Exemption From Payment of Employee's Contribution

The Government of India, in consultation with the Employees' State Insurance Corporation, has amended Rule 52 of the Employees' State Insurance (Central) Rules, 1950, as per notification no G.S.R. 638(E). According to the notification, the limit of average daily wages has been increased to one hundred and seventy-six from one hundred and thirty-seven under exemption from payment of the employee's contribution.

Attached is the Gazette notification dated 6.9.2019 in this respect.