Dear Sir/Madam,

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 15000. 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
Acknowledge(0)
Amend(0)

1) ESI code has to be taken as soon as you have 20 employees.

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


From India, Pune
Acknowledge(0)
Amend(0)

Sirs,

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
Acknowledge(0)
Amend(0)

Dear Sneha,

You have not mentioned your place of operation and also whether you are a factory or non-factory. You have 50 employees, including employees through an outsourced agency. All the 30 employees engaged through the outsourced agency are drawing a salary less than Rs. 15,000/- per month.

For you, the ESI Act is applicable. All the 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.

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,

[Your Name]

From India, Mumbai
Acknowledge(0)
Amend(0)

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.