{"id":28272,"date":"2021-03-30T10:00:49","date_gmt":"2021-03-30T04:30:49","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=28272"},"modified":"2021-03-26T17:44:48","modified_gmt":"2021-03-26T12:14:48","slug":"everything-you-need-to-know-about-esi-for-employees","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/","title":{"rendered":"Everything You Need To Know About ESI for Employees"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Employees State Insurance Act, 1948 regulates Employees&#8217; State Insurance (ESI) in our country. ESI is a self-financed social security scheme that aims to safeguard employees under the regime of the ESI act. Employees of a registered firm are covered against the fiscal crunch that occurs due to health and other issues. ESI for employees aims to stabilize the life of workers with a string of monetary and health-related benefits. In this write-up, we will discuss about this scheme.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#Who_Comes_Under_the_Regime_of_ESI_Scheme\" >Who Comes Under the Regime of ESI Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#What_are_Viable_Benefits_Related_to_ESI_for_Employees\" >What are Viable Benefits Related to ESI for Employees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#What_is_the_Process_of_Registration_Relating_to_ESI_for_Employees\" >What is the Process of Registration Relating to ESI for Employees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#An_Outlook_on_ESI_Contribution_Rates\" >An Outlook on\nESI Contribution Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#Due_Dates_Related_to_ESI_Payment_Return_Filing\" >Due Dates Related\nto ESI Payment &amp; Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#What_is_the_Penalty_for_Late_Payment_or_Non-Payment_of_the_Contributions\" >What is the Penalty for Late Payment or Non-Payment of the\nContributions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/everything-you-need-to-know-about-esi-for-employees\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Comes_Under_the_Regime_of_ESI_Scheme\"><\/span>Who Comes Under the Regime of ESI Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As\nper the ESI Act, 1948, the scheme encompasses the establishments where the\nworker&#8217;s strength is ten or more. The organized and unorganized sector has to\nopt for the ESI for employees without exception.<\/p>\n\n\n\n<p>The same norms are applicable to the non-seasonal factory where the worker strength is ten or more. Moreover, the scheme&#8217;s applicability has been extended to hotels, <em><strong>cinemas<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Cinema\"><em><strong>[1]<\/strong><\/em><\/a><\/sup><em><strong>,<\/strong><\/em> shops, educational institutions, and private medical institutions since 2001.<\/p>\n\n\n\n<p>However, the worker strength needed for <a href=\"https:\/\/corpbiz.io\/esi-registration\"><strong>ESI registration<\/strong><\/a> for factories is ten nationwide. For establishments, this limit has been capped under 10-20 based on the state.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who all are Eligible to get Registered?<\/h3>\n\n\n\n<p> Employees who are earning less than or equal to Rs 21,000 are eligible under the ESI act. Previously, this limit relating to ESI for employees was capped at Rs 15,000, which the government extended in 2016. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-esi-scheme-in-india\/\">Employees State Insurance (ESI) Scheme in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Viable_Benefits_Related_to_ESI_for_Employees\"><\/span>What are Viable Benefits Related to ESI for Employees?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/What-are-Viable-Benefits-Related-to-ESI-for-Employees.png\" alt=\"Benefits Related to ESI for Employees\" class=\"wp-image-28308\" width=\"454\" height=\"454\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/What-are-Viable-Benefits-Related-to-ESI-for-Employees.png 900w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/What-are-Viable-Benefits-Related-to-ESI-for-Employees-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/What-are-Viable-Benefits-Related-to-ESI-for-Employees-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/What-are-Viable-Benefits-Related-to-ESI-for-Employees-768x768.png 768w\" sizes=\"(max-width: 454px) 100vw, 454px\" \/><\/figure><\/div>\n\n\n\n<p>The\nscheme renders monetary and health-related benefits to the insured employees.\nThe contributions made by employees &amp; employers funds these benefits to be\nin existence.<\/p>\n\n\n\n<p>Registered\nworkers are eligible for full medical care when they are incapable of\nperforming their duties due to health-related issues. The scheme relating to\nESI for employees renders fiscal help to compensate for the loss of wages due\nto absenteeism from work due to sickness or hospitalization in any ESI\nhospital.<\/p>\n\n\n\n<p>The\nincome limit for accessing medical-related benefits under the ESI scheme by the\ndependent parents of a registered individual has been raised to Rs 9,000\/month\nfrom Rs 5,000 in Feb 2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Process_of_Registration_Relating_to_ESI_for_Employees\"><\/span>What is the Process of Registration Relating to ESI for Employees?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any\nemployer that fits to norms under ESI Act can get its factory registered under\nESI via ESIC web-based portal. Previously, ESI registration was not an online\nprocess, and a lot of documents were required to address the registration\nformalities. <\/p>\n\n\n\n<p>After\nthe advent of the digital platform the registration process has been\nsimplified.&nbsp; The following steps would\nhelp you complete the registration process:-<\/p>\n\n\n\n<ul><li>Reach\nout for the EPFO portal.<\/li><li>Select\nthe option &#8220;Establishment Registration&#8221; located on the home page.<\/li><li>A new\nwindow will be prompted on the screen, which lets you download the manual\nrelated to employers&#8217; EPF registration.&nbsp;<\/li><li>Before\nfurnishing the form, it is compulsory to avail of the DSC. Make sure to follow\nthe instruction in the manual to get the DSC from the respective certifying\nauthority.<\/li><li>On\nthe subsequent page, tap on the option &#8220;Sign-in. If you are already\nserving as a registered user, login with the help of UAN and password.<\/li><li>On\nthe sign-in page, provide your name along with email and other information\naccordingly.<\/li><li>After\ncompleting the sign-in formalities, tap on the option &#8220;Registration for\nEPFO-ESIC.&#8221;<\/li><li>On\nthe subsequent page, tap on the option &#8220;Apply for New Registration.&#8221;<\/li><li>Now\nyou will be provided with the following options. All you need to opt for the\nright one that fit your need.<\/li><li>&#8220;Employees&#8217; State Insurance Act&#8221;<\/li><li>&#8220;Employees Provident Fund and Miscellaneous\nProvision Act, 1956.&#8221;&nbsp;<\/li><li>On\nthe next page, you were required to complete the following details related to\nthe employer&#8217;s online EPF registration.<\/li><li>Details of establishment<\/li><li>Employer &amp; employee details<\/li><li>Identity proofs<\/li><li>Details related to work and others<\/li><li>Once\ndone, tap on the Submit button to wrap up the proceeding.<\/li><li>After\nthis, the DSC would be submitted against the new application.<\/li><li>As\nsoon as you are done with the above requirement, a confirmation mail will be\nsent to your registered email address.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Outlook_on_ESI_Contribution_Rates\"><\/span>An Outlook on\nESI Contribution Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nESI contribution is comprised of employer&#8217;s &amp; employee&#8217;s contribution at\npre-determined rates. These rates are alterable and are subject to periodic\nmodification.<\/p>\n\n\n\n<p>As of\nnow, the employer&#8217;s contribution has been set to 3.25% of the wages, and that\nof employees is 0.75% of the wages paid in every wage period. Generally, the\nwage timeline is a month. Employees whose daily average income is around Rs 176\nare exempted from payment of their contribution. But, the employer is liable to\ncontribute their share for such employees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Due_Dates_Related_to_ESI_Payment_Return_Filing\"><\/span>Due Dates Related\nto ESI Payment &amp; Return Filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An\nemployer ought to pay their contribution &amp; the employees&#8217; contribution\nmonthly to the ESIC. The due date for paying such contribution is the 15th of\nthe following month.&nbsp;<\/p>\n\n\n\n<p>Moreover, employers require filing ESI return every six months. Here are the deadlines for filing half-yearly ESI returns:&nbsp;<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Period of return<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>Due date of filing returns<\/strong><strong><\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>April to September<\/strong><strong><\/strong>\n  <\/td><td>\n  11th November\n  <\/td><\/tr><tr><td>\n  <strong>October to March<\/strong><strong><\/strong>\n  <\/td><td>\n  11th May&nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>However,\nthese deadlines can be extended or modified via an official notice by the\nconcerned authority. For example, deadlines of ESI contributions for Feb and\nMarch 2020 were extended by the authority to May 15, 2020. The deadline for\nfiling ESI return for October 2019 to March 20 was extended to June 11, 2020,\nfrom May 11, 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Penalty_for_Late_Payment_or_Non-Payment_of_the_Contributions\"><\/span>What is the Penalty for Late Payment or Non-Payment of the\nContributions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Simple\ninterest @ 12%\/annum for each day of payment delay will be applicable to every\nemployer who fails to make the timely payment related to the ESI contributions.<\/p>\n\n\n\n<p>Additionally,\ndelayed payment, false payment, or non-payment under the ESI Act may lure\nimprisonment up to 2 years &amp; fine up to Rs 5,000.<\/p>\n\n\n\n<p>Moreover,\nthe IT act disallows ESI contributions deposited after the prescribed deadline.\nThe employers shall not reap deduction benefit of said contributions &amp; will\nend-up paying income on it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you wish to spend your precious time managing core business operations &amp; not wondering about the said due, then you must get in touch with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz&#8217;s<\/strong><\/a> legal associate. ESI for employees aims to ensure the well-being of the workers via monetary and health-related schemes. <\/p>\n\n\n\n<p>A registered firm&#8217;s employer has to closely monitor the implications regarding ESI contribution or else they might end up paying severe penalties. Feel free to share your views related to this by commenting in the message box. We will try to respond to your concern swiftly.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/esi-eligibility-advantages-and-enrolment-procedure\/\">ESI Eligibility, Advantages and Enrolment Procedure<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employees State Insurance Act, 1948 regulates Employees&#8217; State Insurance (ESI) in our country. ESI is a self-financed social security scheme that aims to safeguard employees under the regime of the ESI act. Employees of a registered firm are covered against the fiscal crunch that occurs due to health and other issues. ESI for employees aims [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":28307,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[213],"tags":[1635],"acf":{"service_id":"14"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7055,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28272"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=28272"}],"version-history":[{"count":20,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28272\/revisions"}],"predecessor-version":[{"id":28310,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28272\/revisions\/28310"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/28307"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=28272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=28272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=28272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}