Employee State Insurance Corporation (ESIC) FAQs

Employees' State Insurance Corporation dispenses the benefits of availing social security and provide health insurance scheme to workers. It is managed by the Employees' State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.

1) What is the purpose of the ESIC?

ESIC provides benefits to the employees and their family members related to medical, sickness, maternity, disablement, and other benefits.

2) When to mandatorily obtain ESIC registration certificate?

The ESIC is applicable to every Shop, establishment, and factory unless specifically exempted by any notification. An establishment having 10 or more than 10 employees on any day has to obtain ESIC registration.

3) Which categories of employees are mandatorily covered in the ESIC deduction Rules?

ESI fund managed by ESIC, it is mandatory for employees getting the salary of Rs. 21,000 or less per month to serve the cash benefit and medical benefits to the worker and their families.

4) What are the source of contribution and the percentage of ESIC deduction Rules?

The ESIC vide notification has reduced the percentage of deduction, the contribution will be from employer and employee as per the recent percentages. An employee has to pay 0.75 percent and the employer has to pay 3.25 percent of the wages towards ESIC contribution.

5) How ESIC is calculated on salary?

Employee's State Insurance Scheme is calculated on the basis of gross salary or wages per month as per ESIC rules of act 1948. Extreme bound is Rs. 21,000 per month, as earlier it was fifteen thousand.

6) What to do after getting the ESIC registration?

After getting the registration the establishment has to file the monthly returns with the department. The last date to file the ESIC return is the 15th day of every following month. 

7) What is the pre-requisite to filing ESIC returns? 

The ESIC returns are based on the generation of the IP i.e. Insured Person Id of the employees wherein the details of the workers have to be submitted for the generation.

8) What are the details required for creating IP?

For the generation of new IP of the worker or in case of a change in employer, the details which is required are the name of the worker, Aadhar number, contact details bank details, nominee details, family member’s details.  

9) If there is no employee and the registration has been taken, then any other specific compliance?

If the company has taken the registration and at any point in time there is no employee in the company whose ESIC is deducted, then also the company has to file NIL return.

10) What if return not filled or delay filling?

An employer who does not pay the contribution amount within the time limit shall be liable to pay simple interest at the rate of 12% per annum for each day till the default persists.

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