New HR Executive Confused About ESIC Contributions for On-Site Contractors – Need Guidance!

Hello everyone!

I'm a new HR Executive. We receive some of our job work from contractors within our premises. Now, I don't actually know how to pay ESIC contributions corresponding to this job work. Should I need to register the contractor in the IP list just like all other regular employees, or is there any alternative way to pay this contribution? Additionally, will the rate remain the same (i.e., 0.75% and 3.25%) as revised from July 2019?

Dear Vijay,

Ideally, the principal employer needs to ensure that even the employees working on the payroll of the contractor are covered under ESIC. So, if the contractor does not have registration, you can register contract employees under your ESIC code until the time they are working with you. You can upload the work order issued to the contractor on the ESIC portal for reference.