How to Pay ESI for Contractors with Less Than 10 Employees Online?

ESI Payment for Contractors with Fewer Employees

Nowadays, ESI is online. I need to know how to make the payment of the ESI amount deducted from the contractor's bill. The contractor has 2-3 people with him, and as required, he comes with those people to complete the job (painting and repairs work of the building) and then leaves. He has approached the ESI office for registration, but the ESI office is refusing to register him as he does not have a minimum of 10 persons. Please advise on how to make the ESI amount deducted from his bill be paid online.

Regards,
Prabhakar

Compliance Under the ESI Act, 1948

Compliance under the ESI Act, 1948, and the rules/regulations framed thereunder is to be based on the "wages" paid to the employees and not on the basis of the "bill" of the contractor.

You can advise the contractor/immediate employer to deposit the contributions under the said Act based on the Wages Register concerning their own employees. The contractor is required to maintain all such records, including Attendance and Wages registers, of their own employees. It is essential to keep a copy of these records with your main establishment so that, when compliance is verified by the concerned department, including EPFO, you can present the same to the authorized officer.

It is your responsibility to ensure that all coverable employees under ESIS entering your premises, whether they are directly employed by you or not, are covered under ESIS. If any coverable employee, whether directly employed by you or through a contractor, is not covered under ESIS, you are liable. If the contractor does not have an ESI code allotted to them, you have to cover the employees of such contractor under your code and make the remittance of contributions accordingly through your code together with your employees. No separate challan or multiple challans are permitted under ESI, similar to PF.