Employee state insurance act 1948 is a social security scheme run by government of India and currently covers more than 2 crore employees and more than 7.5 crore of their family members. Eligible employees and employers get various benefits under the ESI Act by contributing a portion of the employees’ salary towards ESI scheme.
ESI act applies to all shops, businesses, factories as well as establishments that have 10 or more than 10 employees. If your organization normally does not employ more than 10 employees but in any particular month the employee strength was 10 or more, then also your business will covered under the ESI Act and you will be required to contribute.
If your business employes 10 or more employees even once in a year, then you are liable to get registered under the ESI act and contribute towards the insurance scheme for employees.
Employees need to provide their UAN (universal account number) in order to complete their ESI registration process. Once registered, they can easily avail the benefits under the ESI scheme by just providing their Aadhar number and biometric details.
Following are the important benefits that employees can avail under ESI act, employees will be compensated for:
Medical benefits which include free treatment are extended to the family members of the employee. And, if the employee dies during his/her job duration, or incurs any injury, the family members are eligible to receive dependents benefit.
Esi contribution needs to be paid at the online ESIC portal for all the eligible employees in an organization.
Yes, late payment of ESI contribution will attract 12% interest per annum on the payable amount.
Following are the important benefits that employees can avail under ESI act, employees will be compensated for:
Employee’s Register for the employees sent to the principal employer.