Dear all,
Find the attachments for ESI in detail.
ESI Act
The promulgation of the Employees' State Insurance Act, 1948 envisaged an integrated need-based social insurance scheme that would protect the interests of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in the loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependants.
Following the promulgation of the ESI Act, the Central Govt. set up the ESI Corporation to administer the Scheme. The Scheme was first implemented at Kanpur and Delhi on 24th February 1952. The Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961, and the Workmen's Compensation Act, 1923. The benefits provided to the employees under the Act are also in conformity with ILO conventions.
COVERAGE UNDER THE ESI ACT, 1948
Under Section 2(12), the Act is applicable to factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas, including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.
Further, under Section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States.
The State Govt. has been requested to issue a notification under Section 1(5) on the lines of Section 2(12), keeping the threshold limit for coverage as 10 employees instead of 20. The existing wage limit for coverage under the Act is Rs.15,000/- per month (with effect from 01.05.2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories.
STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh, and Mizoram.
UNION TERRITORIES
Delhi, Chandigarh, and Pondicherry.
COVERAGE:
Coverage (As of 31st March 2010)
- No. of Insured Person family units: 14,300,000
- No. of Employees: 13,896,150
- Total No. of Beneficiaries: 55,484,000
- No. of Insured women: 2,600,250
- No. of Employers, etc.: 406,499
Contribution
The E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise the employer's contribution and the employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages, and that of the employer is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.70/- are exempted from the payment of contribution. Employers will, however, contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees' contribution from the wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept. 1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following.
Benefits
Section 46 of the Act envisages the following six social security benefits:
(a) Medical Benefit
TYPE OF MEDICAL BENEFITS PROVIDED
The Employees' State Insurance Scheme provides full medical care in the form of medical attendance, treatment, drugs and injections, specialist consultation, and hospitalization to insured persons and also to members of their families where the facility for Specialist consultation, hospitalization has been extended to the families.
For the families, this benefit has been divided into two categories as under:
FULL MEDICAL CARE
This consists of hospitalization facilities and includes specialist services, drugs, dressings, and diets as required for in-patients.
EXPANDED MEDICAL CARE
This consists of consultation with specialists and the supply of special medicines and drugs as may be prescribed by them in addition to the outpatient care. This also includes facilities for special laboratory tests and X-Ray examinations.
Apart from the curative services provided through hospitals and dispensaries, the Corporation also provides the following facilities including family welfare services.
IMMUNIZATION
The Corporation has embarked upon a massive program of immunization of young children of insured persons. Under this program, preventive inoculation and vaccines are given against diseases like diphtheria, pertussis, polio, tetanus, measles, mumps, rubella, tuberculosis, etc.
FAMILY WELFARE SERVICES
Along with the immunization program, the Corporation has been undertaking the provision of Family Welfare Services to the beneficiaries of the Scheme. The Corporation has organized these services in 180 centers besides reserving 330 beds in hospitals for undertaking tubectomy operations. So far, 828,976 sterilization operations viz. 176,197 vasectomies and 652,779 tubectomies have been performed up to 31.3.1999. The ESI Corporation has also extended additional cash incentives to insured persons to promote the acceptance of sterilization methods by providing sickness cash benefits equal to the full wage for a period of 7 days for vasectomy and 14 days for tubectomy. The period for which cash benefit is admissible is extended beyond the above limits in the event of any complications after Family Planning operations.
SUPPLY OF SPECIAL AIDS
Insured persons and members of their families are provided artificial limbs, hearing aids, and artificial appliances like spinal supports, cervical collars, walking calipers, crutches, wheelchairs, and cardiac pacemakers as a part of medical care under the Scheme.
Sickness Benefit (SB)
Sickness Benefit represents periodical cash payments made to an IP during the period of certified sickness occurring in a benefit period when the IP requires medical treatment and attendance with abstention from work on medical grounds. Prescribed certificates are; Forms 8, 9, 10, 11 & ESIC-Med.13. Sickness benefits are roughly 60% of the average daily wages and are payable for 91 days during 2 consecutive benefit periods.
Qualifying Conditions
(i) To become eligible for Sickness Benefit, an IP should have paid contributions for not less than 78 days during the corresponding contribution period.
(ii) A person who has entered into insurable employment for the first time has to wait for nearly 9 months before becoming eligible for sickness benefit because his corresponding benefit period starts only after that interval.
(iii) Sickness Benefit is not payable for the first two days of a spell of sickness except in the case of a spell commencing within 15 days of closure of the earlier spell for which sickness benefit was last paid. This period of 2 days is called the "waiting period." This provision should be clearly understood by IMOs/IMPs as actual experience shows that such IPs who want to avail medical leave on flimsy grounds generally come for the First Certificate/First & Final Certificate within 15 days of the earlier spell, usually on unpaid holidays and/or on each weekly off etc., to avoid the loss of benefit for 2 days due to a fresh waiting period.
Extended Sickness Benefit (ESB)
IPs suffering from long-term diseases were experiencing great hardship on the expiry of the 91 days Sickness benefit. Often they, though not fit for duty, pressed for a Final certificate. Hence, a provision for paying Sickness Benefit for an extended period (Extended Sickness Benefit) of up to 2 years in an ESB period of 3 years.
An IP suffering from certain long-term diseases is entitled to ESB, only after exhausting the Sickness Benefit to which he may be eligible. A common list of these long-term diseases for which ESB is payable is reviewed by the Corporation from time to time. The list was last reviewed on 5.12.99, and revised provisions of ESB became effective from 1.1.2000, and at present, this list includes 34 diseases which are grouped in 11 groups as per the International Classification of diseases, and the names of many existing diseases have been changed as follows:
Enhanced Sickness Benefit
It was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy/Tubectomy. Insured Persons eligible for ordinary sickness benefit are paid enhanced sickness benefit at double the rate of sickness benefit i.e., about the full average daily wage for undergoing sterilization operations for family welfare. The duration of enhanced Sickness Benefits is up to 7 days in the case of Vasectomy and up to 14 days in the case of the Tubectomy from the date of operation or from the date of admission in the hospital as the case may be. The period is extendable in case of postoperative complications.
(b
From India, Tirunelveli
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Find the attachments for ESI in detail.
ESI Act
The promulgation of the Employees' State Insurance Act, 1948 envisaged an integrated need-based social insurance scheme that would protect the interests of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in the loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependants.
Following the promulgation of the ESI Act, the Central Govt. set up the ESI Corporation to administer the Scheme. The Scheme was first implemented at Kanpur and Delhi on 24th February 1952. The Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961, and the Workmen's Compensation Act, 1923. The benefits provided to the employees under the Act are also in conformity with ILO conventions.
COVERAGE UNDER THE ESI ACT, 1948
Under Section 2(12), the Act is applicable to factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas, including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.
Further, under Section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States.
The State Govt. has been requested to issue a notification under Section 1(5) on the lines of Section 2(12), keeping the threshold limit for coverage as 10 employees instead of 20. The existing wage limit for coverage under the Act is Rs.15,000/- per month (with effect from 01.05.2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories.
STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh, and Mizoram.
UNION TERRITORIES
Delhi, Chandigarh, and Pondicherry.
COVERAGE:
Coverage (As of 31st March 2010)
- No. of Insured Person family units: 14,300,000
- No. of Employees: 13,896,150
- Total No. of Beneficiaries: 55,484,000
- No. of Insured women: 2,600,250
- No. of Employers, etc.: 406,499
Contribution
The E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise the employer's contribution and the employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages, and that of the employer is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.70/- are exempted from the payment of contribution. Employers will, however, contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees' contribution from the wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept. 1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following.
Benefits
Section 46 of the Act envisages the following six social security benefits:
(a) Medical Benefit
TYPE OF MEDICAL BENEFITS PROVIDED
The Employees' State Insurance Scheme provides full medical care in the form of medical attendance, treatment, drugs and injections, specialist consultation, and hospitalization to insured persons and also to members of their families where the facility for Specialist consultation, hospitalization has been extended to the families.
For the families, this benefit has been divided into two categories as under:
FULL MEDICAL CARE
This consists of hospitalization facilities and includes specialist services, drugs, dressings, and diets as required for in-patients.
EXPANDED MEDICAL CARE
This consists of consultation with specialists and the supply of special medicines and drugs as may be prescribed by them in addition to the outpatient care. This also includes facilities for special laboratory tests and X-Ray examinations.
Apart from the curative services provided through hospitals and dispensaries, the Corporation also provides the following facilities including family welfare services.
IMMUNIZATION
The Corporation has embarked upon a massive program of immunization of young children of insured persons. Under this program, preventive inoculation and vaccines are given against diseases like diphtheria, pertussis, polio, tetanus, measles, mumps, rubella, tuberculosis, etc.
FAMILY WELFARE SERVICES
Along with the immunization program, the Corporation has been undertaking the provision of Family Welfare Services to the beneficiaries of the Scheme. The Corporation has organized these services in 180 centers besides reserving 330 beds in hospitals for undertaking tubectomy operations. So far, 828,976 sterilization operations viz. 176,197 vasectomies and 652,779 tubectomies have been performed up to 31.3.1999. The ESI Corporation has also extended additional cash incentives to insured persons to promote the acceptance of sterilization methods by providing sickness cash benefits equal to the full wage for a period of 7 days for vasectomy and 14 days for tubectomy. The period for which cash benefit is admissible is extended beyond the above limits in the event of any complications after Family Planning operations.
SUPPLY OF SPECIAL AIDS
Insured persons and members of their families are provided artificial limbs, hearing aids, and artificial appliances like spinal supports, cervical collars, walking calipers, crutches, wheelchairs, and cardiac pacemakers as a part of medical care under the Scheme.
Sickness Benefit (SB)
Sickness Benefit represents periodical cash payments made to an IP during the period of certified sickness occurring in a benefit period when the IP requires medical treatment and attendance with abstention from work on medical grounds. Prescribed certificates are; Forms 8, 9, 10, 11 & ESIC-Med.13. Sickness benefits are roughly 60% of the average daily wages and are payable for 91 days during 2 consecutive benefit periods.
Qualifying Conditions
(i) To become eligible for Sickness Benefit, an IP should have paid contributions for not less than 78 days during the corresponding contribution period.
(ii) A person who has entered into insurable employment for the first time has to wait for nearly 9 months before becoming eligible for sickness benefit because his corresponding benefit period starts only after that interval.
(iii) Sickness Benefit is not payable for the first two days of a spell of sickness except in the case of a spell commencing within 15 days of closure of the earlier spell for which sickness benefit was last paid. This period of 2 days is called the "waiting period." This provision should be clearly understood by IMOs/IMPs as actual experience shows that such IPs who want to avail medical leave on flimsy grounds generally come for the First Certificate/First & Final Certificate within 15 days of the earlier spell, usually on unpaid holidays and/or on each weekly off etc., to avoid the loss of benefit for 2 days due to a fresh waiting period.
Extended Sickness Benefit (ESB)
IPs suffering from long-term diseases were experiencing great hardship on the expiry of the 91 days Sickness benefit. Often they, though not fit for duty, pressed for a Final certificate. Hence, a provision for paying Sickness Benefit for an extended period (Extended Sickness Benefit) of up to 2 years in an ESB period of 3 years.
An IP suffering from certain long-term diseases is entitled to ESB, only after exhausting the Sickness Benefit to which he may be eligible. A common list of these long-term diseases for which ESB is payable is reviewed by the Corporation from time to time. The list was last reviewed on 5.12.99, and revised provisions of ESB became effective from 1.1.2000, and at present, this list includes 34 diseases which are grouped in 11 groups as per the International Classification of diseases, and the names of many existing diseases have been changed as follows:
Enhanced Sickness Benefit
It was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy/Tubectomy. Insured Persons eligible for ordinary sickness benefit are paid enhanced sickness benefit at double the rate of sickness benefit i.e., about the full average daily wage for undergoing sterilization operations for family welfare. The duration of enhanced Sickness Benefits is up to 7 days in the case of Vasectomy and up to 14 days in the case of the Tubectomy from the date of operation or from the date of admission in the hospital as the case may be. The period is extendable in case of postoperative complications.
(b
From India, Tirunelveli
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Dear Friends, Is it usefull or not? Send Some comments on it. With Thanks, your friend.
From India, Delhi
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127From India, Delhi
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Hi Ankita,
Find the details below for applying ESI code and the documents maintained after obtaining the ESI code for your company.
Hope this helps u.
ESI – Procedure to introduce ESI in a Unit or Company
First U have to decide whether Ur unit is in the implemented area or not;
* If Ur Unit is in implemented area, immediately u apply for ESI by submitting the Form-01 form (which can be downloaded from the cite ESIC - Headquarters' Office) along with necessary documentary evidences, wherever it is needed, to the Regional Office concerned;
* Then u will be alloted 17 digit ESI Code No. to ur unit, which is permanent no. to ur unit;
Once ur unit got the ESI Code No., next duty is to register ur employees:
* U have to submit the Declaration Forms in respect of all ur employees who are drawing 15000= or less than 15000=, whether they are temporary/casual/permanet/daily etc., to the concerned Branch Office;
* Branch Office will allot the Insurance Nos. to all the employees and provide a temporary card, which will be valid for 3 months from the date of their appointment, in case if they cross 3 months, u can request for providing permanent card;
*Every month from the data of attandance and wages registers, u have to maintain a Register of employees under the ESI Act, i.e. Form-6, based on it, u have to pay the ESI Contribution Everymonth before 21st of the following month;
*Every 6 months u have to submit Half yearly returns, Form-5 to the concerned Branch Office;
*Every Year u have to submit annual returns on or before 31st of January in Form-01(A) form;
Under ESI Act... U have to maintain the following records:
i. Attendance Register;
ii. Wages Register;
iii. Form-6 Register;
iv. Accident Register;
v. Inspection Book & vi. File containing all ur monthly challans & returns submitted..
apart from the above register.. u are bound to produce the following records on demand to the Insurance Inspector during his inspection:
* All books of accounts, such as P&L Account, Balance Sheet and its annexures; Cash Book/Bank Book and all concerned Bills & Vourchers and etc.,
* Further if u are having any of the immediate employers, such as contractors, security personnels, u have to confirm about their compliance under ESI before settling of their monthly bill... as being Principle employer u will held responsible for their default.
Also go through ESI and PF topics discussed on this site. Many HR Professionals have provided good amount of information about PF and ESI. you just have to spend some time and go through the topics and replies on this site, and also do some home work on your own. These information would help u succeed your challenging job.
Regards,
Indhu
From India, Bangalore
Acknowledge(0)Amend(0)
Find the details below for applying ESI code and the documents maintained after obtaining the ESI code for your company.
Hope this helps u.
ESI – Procedure to introduce ESI in a Unit or Company
First U have to decide whether Ur unit is in the implemented area or not;
* If Ur Unit is in implemented area, immediately u apply for ESI by submitting the Form-01 form (which can be downloaded from the cite ESIC - Headquarters' Office) along with necessary documentary evidences, wherever it is needed, to the Regional Office concerned;
* Then u will be alloted 17 digit ESI Code No. to ur unit, which is permanent no. to ur unit;
Once ur unit got the ESI Code No., next duty is to register ur employees:
* U have to submit the Declaration Forms in respect of all ur employees who are drawing 15000= or less than 15000=, whether they are temporary/casual/permanet/daily etc., to the concerned Branch Office;
* Branch Office will allot the Insurance Nos. to all the employees and provide a temporary card, which will be valid for 3 months from the date of their appointment, in case if they cross 3 months, u can request for providing permanent card;
*Every month from the data of attandance and wages registers, u have to maintain a Register of employees under the ESI Act, i.e. Form-6, based on it, u have to pay the ESI Contribution Everymonth before 21st of the following month;
*Every 6 months u have to submit Half yearly returns, Form-5 to the concerned Branch Office;
*Every Year u have to submit annual returns on or before 31st of January in Form-01(A) form;
Under ESI Act... U have to maintain the following records:
i. Attendance Register;
ii. Wages Register;
iii. Form-6 Register;
iv. Accident Register;
v. Inspection Book & vi. File containing all ur monthly challans & returns submitted..
apart from the above register.. u are bound to produce the following records on demand to the Insurance Inspector during his inspection:
* All books of accounts, such as P&L Account, Balance Sheet and its annexures; Cash Book/Bank Book and all concerned Bills & Vourchers and etc.,
* Further if u are having any of the immediate employers, such as contractors, security personnels, u have to confirm about their compliance under ESI before settling of their monthly bill... as being Principle employer u will held responsible for their default.
Also go through ESI and PF topics discussed on this site. Many HR Professionals have provided good amount of information about PF and ESI. you just have to spend some time and go through the topics and replies on this site, and also do some home work on your own. These information would help u succeed your challenging job.
Regards,
Indhu
From India, Bangalore
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Dear All,
Applicability of P.F. / E.S.I. is necessary when there are 10 employees involved in production or operation processes, with or without power, and 20 employees in the service industry for registration with the respective department. For the registration procedure, please visit [EPFO](http://www.epfindia.com) and [ESIC - Headquarters' Office](http://www.esic.nic.in).
Regards,
Rajesh
From India, Delhi
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Applicability of P.F. / E.S.I. is necessary when there are 10 employees involved in production or operation processes, with or without power, and 20 employees in the service industry for registration with the respective department. For the registration procedure, please visit [EPFO](http://www.epfindia.com) and [ESIC - Headquarters' Office](http://www.esic.nic.in).
Regards,
Rajesh
From India, Delhi
Acknowledge(0)Amend(0)
Dear All,
We have employees on a contract basis (agreement with us only, no subcontract), who work on an hourly basis. Around 50 contract employees work around 3-5 hours per day.
1. Is ESI and PF applicable to them?
2. Apart from these, are any other compliance requirements applicable to them?
-- Regards, Manish P
From India, Cochin
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We have employees on a contract basis (agreement with us only, no subcontract), who work on an hourly basis. Around 50 contract employees work around 3-5 hours per day.
1. Is ESI and PF applicable to them?
2. Apart from these, are any other compliance requirements applicable to them?
-- Regards, Manish P
From India, Cochin
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