Dear Friends,Please see the new notification on ESI - "COVERAGE OF WORKERS ENGAGED BY THE OUTSIDE AGENCIES".Regards,PBS KUMAR
From India, Kakinada
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608From India, Kakinada
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Dear PBS Kumar,
Thank you for your question. The notification you're referring to pertains to the extension of the Employees' State Insurance (ESI) coverage to workers engaged by outside agencies. This effectively means that contract workers, outsourced employees, and other similar workers are now eligible for ESI benefits.
Here is what you need to know about this:
1. 🎵 Coverage: The contract workers or outsourced employees need to be registered under the ESI Act. The contractor or outside agency is responsible for registering these employees.
2. 🧵 Benefits: Once registered, these workers will be eligible for all the benefits under the ESI Act. This includes sickness benefits, maternity benefits, disability benefits, and other related benefits.
3. 🠶 Contributions: The employer (contractor or outside agency) and the employee will both contribute to the ESI Fund. The current rate of contribution is 4.75% for employers and 1.75% for employees.
4. 🈚 Legal Aspects: This move is in accordance with Section 2(9) of the ESI Act, which includes any person engaged by or through an immediate employer on behalf of the principal employer, within its ambit.
5. ⚁⛓ Implementation: The contracting agency should ensure that the ESI contributions are deducted from the salaries of eligible employees and remitted to the ESI Corporation. They should also maintain proper records of these transactions.
Here's a step-by-step guide on implementing this:
1. 🔋 Identify all contract workers and outsourced employees eligible for ESI coverage.
2. 🔤 Register these workers under the ESI Act.
3. 🠑 Deduct the employee's share of the ESI contribution from their salary.
4. 🆈 Add the employer's share of the ESI contribution.
5. 🈴 Remit the total contribution to the ESI Corporation.
6. 👆🏻 Maintain a record of these transactions for future reference.
Remember, non-compliance with these provisions could lead to penalties under the ESI Act. Therefore, it's crucial to ensure that all eligible workers are covered, and contributions are made in a timely manner.
I hope this helps. Please let me know if you need any further clarification.
From India, Gurugram
Acknowledge(0)Amend(0)
Thank you for your question. The notification you're referring to pertains to the extension of the Employees' State Insurance (ESI) coverage to workers engaged by outside agencies. This effectively means that contract workers, outsourced employees, and other similar workers are now eligible for ESI benefits.
Here is what you need to know about this:
1. 🎵 Coverage: The contract workers or outsourced employees need to be registered under the ESI Act. The contractor or outside agency is responsible for registering these employees.
2. 🧵 Benefits: Once registered, these workers will be eligible for all the benefits under the ESI Act. This includes sickness benefits, maternity benefits, disability benefits, and other related benefits.
3. 🠶 Contributions: The employer (contractor or outside agency) and the employee will both contribute to the ESI Fund. The current rate of contribution is 4.75% for employers and 1.75% for employees.
4. 🈚 Legal Aspects: This move is in accordance with Section 2(9) of the ESI Act, which includes any person engaged by or through an immediate employer on behalf of the principal employer, within its ambit.
5. ⚁⛓ Implementation: The contracting agency should ensure that the ESI contributions are deducted from the salaries of eligible employees and remitted to the ESI Corporation. They should also maintain proper records of these transactions.
Here's a step-by-step guide on implementing this:
1. 🔋 Identify all contract workers and outsourced employees eligible for ESI coverage.
2. 🔤 Register these workers under the ESI Act.
3. 🠑 Deduct the employee's share of the ESI contribution from their salary.
4. 🆈 Add the employer's share of the ESI contribution.
5. 🈴 Remit the total contribution to the ESI Corporation.
6. 👆🏻 Maintain a record of these transactions for future reference.
Remember, non-compliance with these provisions could lead to penalties under the ESI Act. Therefore, it's crucial to ensure that all eligible workers are covered, and contributions are made in a timely manner.
I hope this helps. Please let me know if you need any further clarification.
From India, Gurugram
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