ESIC

ESI is also a social security scheme intended to assist the covered employee in contingencies like illness, un-employment due to disability during employment and maternity.

Applicability of ESIC Act to an Establishment

It applies to all the establishments employing 10 or more employees

Eligibility of An Employee

Employees in an establishment covered in ESIC with wages less than 21000 are eligible and are need to be registered within 10 days of their joining in the establishment.

Wages means all the emoluments paid to the employee working in or in relation to the establishment except

• Payments made to the employee to meet special expenses
• Gratuity
• Provident fund contributions
• CONTRIBUTIONS
• Employer 3.25% of earned wages
• Employee 0.75% of earned wages
• ADVANTAGES FOR EMPLOYER
• Amount paid by Employer towards ESI contribution will not be considered as profit for the purpose of calculating Income Tax
• No need to provide medical benefits for the employees covered under ESIC
• Exempted from the applicability of Workmen compensation act and Maternity Benefit Act
• ADVANTAGES FOR EMPLOYEES
• Disablement benefit to the employee if the disability is due to the Employment

The death benefit will be provided in case of death of employee to the family if death is due to the employment accident.

Maternity benefit will be provided to the female employees i.e wages will be provided while on approved Maternal Leave. Benefit amount is almost equal to the full salary while on duty. Max 12 weeks

Medical Benefits to the Employee as well as to his family

And several other benefits…