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In our company, there are 50 employees. Out of these 50, 30 employees are outsourced from a manpower agency firm. The salary of these 30 employees is less than 15,000. Recently, a new employee joined our company in July. I have a query regarding ESIC: when will his contribution and benefit period start as per ESIC regulations? From which month will the employee begin receiving ESIC benefits? Also, in the scenario where the employee takes a sickness leave for 7 days, what steps should be taken?

Thank you.

From India, Mumbai
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ESI Code Requirement

1) The ESI code must be obtained as soon as you have 20 employees.

2) If your organization is already covered under ESI, then the contribution must be recovered and remitted to ESIC from the employees' joining date.


From India, Pune
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It would be better if you also consult the Employees' State Insurance Act, 1948, and the rules and regulations framed thereunder. The Act, as well as the rules/regulations, can be downloaded from the website of ESIC. The payment of benefits under the ESI Act, 1948, is automatic provided the insured person is eligible, and necessary registration and certification are obtained from the appropriate Branch Office of ESIC and ESI Dispensary.
From India, Noida
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You have not mentioned your place of operation and whether you are a factory or non-factory. You have 50 employees, including those through an outsourced agency. All 30 employees engaged through the outsourced agency are drawing a salary of less than Rs. 15,000/- per month.

For you, the ESI Act is applicable. All employees, including those through the outsourced agency, with a gross salary of up to Rs. 15,000/- are to be covered under ESIS compulsorily. It is your responsibility to cover the employees through the outsourced agency under ESIS.

Contribution and Benefit Periods

Regarding your question on the contribution period and benefit period, there are two contribution periods and two corresponding benefit periods that start three months after the closing of the contribution periods. Generally, cash benefits are linked with the contribution. Some benefits the IP is entitled to get from day one. I urge you to study this subject first and understand the concept. We have discussed this issue several times on this forum.

Sincerely

From India, Mumbai
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