ESI/PF Generation
- PF is aimed to benefit any unemployed person. After 60 days, that person can use his/her PF.
- ESI is insurance that has Sickness and other benefits. Full and final settlement is the last payment to be made to an ongoing employee.
- PF – Provident Fund
- ESI – Employee State Insurance.
- Under the scheme, the workers are entitled to get medical, monetary, and other benefits from the employer.
- A company with a minimum of 10 employees having their monthly salary not exceeding 21000/- INR has to register with ESIC.
Benefits
- In case of certified illness, that lasts up to 90 days in any year. Sickness benefits are granted at a rate of 70% in the form of salary.
- Medical benefits are provided to the employee as well as his family.
- Paid leaves are provided to the women who are pregnant.
- In the case of the employee’s sudden demise at work, 90% of the salary will be given to his dependents every month. In the case of disability, the same rule is applicable.
- Funeral expenses are included in the facility.
- Medical expenses are provided for old-age free.
ESIC Registration - Documentation
- A registration certificate for the respected factory or the shop.
- Memorandum of association and articles of the company.
- A list of all the employee’s working in the Establishment.
- PAN Card is mandatory for the running business and its staff.
- Employee details in full.
- A canceled cheque of the Bank account of the particular company.
- List of all the shareholders and the directors of the company.
- A well-maintained record containing the attendance of all employees.
FAQs
Is it essential for employers to register under the ESI Act?
Earlier, the registration was a manual process, and for factories, it was mandatory to get registered. Now, as the Government has come up with various initiatives that encourage people to do business, the registration process is quite simple. Visit the portal – www.esic.in, and now employers have the option to either visit the office or register online.
What is the different type of establishments that are covered under ESI?
- Hotels or restaurants that are only engaged in sales.
- Cinemas
- Road motor transport establishments
- Newspaper establishments
- Private educational institutions
- Medical institutions and private hospitals.
What is the name of the administration body?
The Employees’ State Insurance Corporation (ESIC) is a corporate body that administers and manages the daily activities of the ESI Scheme. It has members that represent employers, the central government, the state government, the medical profession, and the Hon’ble Members of Parliament.
My salary is 22,000 monthly, will the deductions of contribution from my wages stop?
You will be listed as an employee until the completion of the financial year, and your contribution will be deducted and paid on the total income.
What are the benefits an employee gets under the ESIC scheme?
The employees who are registered under this scheme, they got full medical care at the time they cannot do work. This scheme provides the employee financial security and leaves on his Sickness, maternity, employment injury. Even this gives full medical care to employee family members as well.
If delayed payment happens, will it attract any interest?
Yes, if the employer fails to contribute within the time limit under Regulation 31, then liable to pay simple interest at the percentage rate of 12% per annum to each day of delay in payment of contribution.
What is an ESIC Code number?
This is a 17 digit identification number that shows the identity of an employee given by the Regional Office from the Social Security Officer on a receipt of Form-01. The employer used this number under all sectors with ESI.
Name the other organizations affiliated under ESI Corporation?
At a national level, for administering the affairs of the Corporation, a Standing Committee is there, and to mentor the Corporation on the administration of Medical benefit, the Medical Benefit Council is there. At the regional level, the regional boards and Local Committees have been made to review the functioning of the scheme and build tools for improvement.
What is the prescribed time-limit for submitting the contribution?
The period is of 15 days of the last days of the calendar of the month. During this period, the contribution should be paid in employee bank authorized by the Corporation.
How workers get registered under this scheme?
At the time of joining, the employee has to provide the details of his/her family members along with their photo so that the employer registered the employee online. The process of registering online is proof of employment of the employee.