Sumathi Bhaskar | Bizprout Corporate Solutions Pvt Ltd
Applicability of ESIC across Industries in India
08 Feb, 2024
Employees’ State Insurance (ESI) serves as a safety net for millions of workers across India, providing them with comprehensive health benefits.
Ever wondered about the Employees’ State Insurance (ESI) scheme and its nuances across State and Central jurisdictions? Let's delve into this vital aspect of labour welfare!
It's crucial for professionals and businesses to understand when ESI applies and to which industries, both on a state and central level.
The first question will be Is ESI mandatory for all employees? Yes. All the Organization covered under the ESI Act and all factories that employ more than 10 employees and pay wages below or upto Rs.21,000 per month and for employees with disability Rs.25,000 must register with the ESIC and contribute towards the ESI scheme.
What is the time duration for ESI Registration?
An organization must register with the ESIC within 15 days from the time the organisation is covered under the ESI Act.
If the employee's salary is less than ₹ 21,000 per month, the employee and the employer must contribute to the ESIC fund.
Who can be exempted from payment of ESIC contribution?
Employees who are in receipt of a daily average wage upto Rs. 176/- can be exempted.
Employers however will contribute their own share in respect of these employees.
The ESIC has fixed the contribution rate of the employees at 0.75% of their wages and the employer's contribution at 3.25% of the wages for FY 2023-24.
Stay informed about the Complexity of ESI in your state and industry. Consult with legal experts or regulatory authorities if needed to ensure compliance. Prioritize the welfare of your workforce, because when employees feel valued and cared for, it translates into organizational success.
Publisher: Sumathi Bhaskar | Bizprout Corporate Solutions Pvt Ltd
