Most of the time employer used to take an exclusion stating the reason we don’t have ESI network of hospital in our District but now it cannot be claimed as Karnataka state has covered the ESI network through out Karnataka. Even the coverage salary range is increased from 15000 per month to 21000 per month which will increase the limit applicable for ESI coverage.
EMPLOYEES’ STATE INSURANCE CORPORATION:
- ESI Act applies to entire State of Karnataka.
- All Factories / Shops/ Establishments/ Medical Institutions/ Educational/Institutions/ Hotels/ Restaurants/ Road Transport Establishments/ Cinema Theaters/ Newspaper Establishments and any units, engaging 10 or more employees are liable to get registered under ESI Act 1948.
- Wage limit for coverage of employees has been enhanced from existing ₹ 15,000/- to ₹ 21,000/- per month with effect from 01-01-2017.
- Rate of contribution in 6.5 % of the wages (4.75% as employers’ contribution and 1.75% as employees’ contribution)
- However newly implemented areas have been given special concession with effect from 6th October 2016, employers need to pay contribution at 4% of wages (I.e., 3% as Employers’ and 1% as Employees’ contribution) till specified period.
In Karnataka, this special concession applies to parts of 26 districts where ESI Scheme was implemented with effect from 01-05-2016 and to the whole of 4 remaining districts viz., Bidar, Chikkaballapura, chikkamagaluru, Kodagu where ESI Scheme was implemented with effect from 01-09-2016,
- A one time special drive “SPREE” (Scheme for promoting registration of Employers and Employees) has been launched to register all the eligible employers and employees from 20th December 2016 to 31st March 2017.
- The employers registering during this period will be treated as covered from the date of registration or as declared by them.
- The newly registered employees during this period will be treated as covered under the ESI Scheme from the date of their registration.
- Please visit our website esic.in for online registration. If you need help in managing your ESI or PF visit www.epfprocess.com
- For further details, please contact nearest ESIC office.