How New ESIC Rules Affect Employers: What You Need to Know About Half-Yearly Returns

Dear Friends,

ESIC, via a notification dated 11.3.2008, has amended regulation no. 26 w.e.f 1.4.08, requiring employers to submit a half-yearly return in amended Form-5 (Return of Contribution) regarding employees engaged through principal and immediate employer.

The effect of the amendments is that now an employer with more than 40 employees must attach a certificate duly certified by a Chartered Accountant regarding the authenticity of the return details. In addition to this certificate, the employer must now:

1. Make a self-declaration regarding the maintenance of records and registers.
2. Submit declaration forms.
3. Distribute TICs/PICs.
4. Provide details of employees engaged directly or through immediate employers and wages paid to the workers.

Employers with fewer than 40 employees must provide self-certification without a C.A. certificate.

Consequently, the Half-Yearly return for the period Oct. to March, with a filing deadline of 12 May, 2008, must be submitted in the newly revised Form No. 5.

Regards,

Anil Kaushik

Chief Editor - Business Manager - HR Magazine

Smriti Sadan, 28, Raghu Marg, Alwar - 301001 (Raj.) India

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Dear Friends,

Please find the new amendment of ESIC in the attached file regarding self-certification.

Dear Mr. Anil,

Thank you very much for your information on ESI. It will help us stay updated on the amendments. I am looking forward to your further support.

Regards,
Dhananjay

Dear Anil, Amit & Poorna,

Good information. Thank you very much. Also, kindly provide any format for self-certification for the below-mentioned tasks, which we have submitted in the ESIC office along with the Returns:

1. Self-declaration regarding maintenance of records and registers
2. Submission of declaration forms
3. Distribution of TICs/PICs
4. Employees engaged directly or through immediate employers and wages paid to the workers.

Regards,
Keshav Reddy.

Hi Anil!

Thank you very much for your wonderful contribution regarding the ESI Amendment. Could you please explain to me what the Distribution of TICs/PICs is? I mean, could you explain to me what TICs/PICs are?

I hope to hear from you soon. Please do solve my query.

Regards,
Akshita

Dear Akshita,

"TIC" means Temporary Identification Card.
"PIC" means Permanent Identification Card.

When you submit the ESIC declaration form, ESIC will issue TIC, which will be valid for 3 months from the date of joining (DOJ). If an employee has a TIC, you need to give Form-37 (available at the ESIC office) to him/her to avail the medical benefits.

After 3 months, you will receive the PIC, which you have to distribute to the employees. According to the new notification, you need to maintain records of the distribution of the TIC & PIC.

I suggest taking the acknowledgment signature from the employee whenever you distribute the TIC & PIC so that you will be on the safer side.

Regards,
Keshav Reddy.

Can you update me regarding ESI and PF as I was not in touch since the last year? I was working as GM-Administration.

Form 5A for the ESIC half-yearly return in Excel form.

When do we need self-certification if the total number of ESI-covered employees is more than 40, or if the total strength (including non-covered employees) exceeds 40? Please let me know. It is urgent.

Form 6 Wage Period and Calculation Details

You have a Form 6. The wage period is from April 1st to September 30th. Note that loss of pay days should not be considered in the wage period. The total amount of wage paid is the monthly gross salary multiplied by 6 months. Employees' contribution deducted is 1.75% of the total gross salary for 6 months. The average daily salary is the total amount of wage divided by the wage period.

Remarks

If the employee leaves during the above period, mention the date of leaving the service. If the employee joins within the above period, mention the date of joining.