Employee stat insurance corporation is mandatory in a factory or establishment having 10 or more person …
If you fail to register anytime ESI inspector may visit your unit to explain the statutory requirement and as an employer you need to pay from the date your unit crossed 10 or more and whose salary as of now is less than Rs.15000.00 backdated.
MEDICAL BENEFITS:
- OPD and In-patient Treatment for sickness, maternity & employment injury through 101 esi dispensaries and 8 ESI hospitals.
- Super specialty tratment throughy 80 leading private hospitals
Cash benefits;
- Sickness benefits (70% of the wages)
- Extended sickness benefit (80% of wages)
- Temporary disablement due to employment injury (90% of wages)
- Permanent Disablement benefit
- Dependent Benefits
- Unemployment Allowances
One side ESI is a very good tool as an employer you will be contributing 4.75% of the gross salary and from your employee’s pay deducting 1.75% from their gross salary. ESI is not applicable for those who are drawing a salary of Rs.15000 and above.
Employer can deduct and pay to ESI on monthly basis and enroll employees online and virtual card can be issued online later employees can go with their family to the nearest ESI center for group photo which will be bio-metric card can be used for cashless hospitalization in any ESI hospitals.
ESI will relieve the employer of their responsibility towards any injury,medical illness as ESI will takeover the burden from them.
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
If we compare the cost of Group mediclaim now a days best option would be ESI facility where there is no CAP on the insured amount and the whole family would be covered.
1 Comment
Dear sir
I already applied for E SIC card and fulfill all requirement before one year but I have not got It,from E SIC .
Pankaj Kumar Singh
DOB: 01/01/1983
Mob-9628373193
Asset Reconstruction Company India Ltd
Lucknow (UP)