FAQs on ESIC

#1:- How does the ESIC programme benefit workers?

The employee enrolled under the ESI Act, 1948, is eligible for comprehensive medical care under the system. When a person is absent from work owing to illness, pregnancy, or an accident at work, it offers cash support to make up for lost pay. The plan also covers the medical needs of his or her family.

#2:- Which establishments are eligible for ESI coverage?

• Shops
• Hotels or restaurants
• Movie theatres
• Road Motor Transport Establishments
• News paper establishments
• Private Educational Institutions

Some state governments have not expanded the program to include educational and medical institutions.

#3:- What is a factory or establishment’s registration?

The Act’s registration approach involves online self-registration for compliance for all factories and establishments. Alternatively, upon identification by ESIC, a factory or establishment is requested to register under the Act.

#4:- Is this mandatory for all employers?

Yes, within 15 days of the ESI Act becoming applicable to them, employers are required by law to register their factories and establishments under Section 2A of the Act following Regulation 10-B.

#5:- What is the process involved?

• After the Act becomes applicable to a factory or establishment, it must register by going online at www.esic.in, the ESIC Portal, within 15 days of the date of application.
• When signing up, the employer must provide the following information: the name of the factory or establishment, the address, the employer’s name, the bank account, the PAN, the state and region, and the email address.
• Through his mail ID, the employer attempting to register would receive a user ID and password. The employer’s login is available at esic.in.
• Upon successful registration, a 17-digit code number is created automatically.

#6:- What is the contribution deadline?

Within 15 days of the last day of the calendar month in which the contribution is due for any salary period, an employee’s contribution must be made to a bank that has been properly approved by the Corporation

#7:- What effects result from failing to pay an employee’s contribution that was withheld but not paid on time?

According to Section 40(4) of the ESI Act, 1948, any amount that the principal employer deducts from an employee’s wages under the ESI Act is considered to have been given to him by the employee in order to pay the contribution for which it was deducted. The failure to pay or delay in paying the employee’s contribution that is deducted from their earnings is considered a “breach of trust” and is punished under sections 85 of the ESI Act as well as IPC 406 and 409.

#8:- Will there be interest charged on the overdue payment?

For each day that a contribution is delayed or not made following Regulation 31, an employer who does not make the contribution within the time frame outlined in Regulation 31 may be required to pay simple interest at the annual rate of 12%.

#9:- Which records must be kept up to date for ESI audit purposes?

The employer must keep the following documents to comply with ESI:

• Books of accounts, payroll records, and Muster Rolls are kept by other laws.
• The new Form-11 Accident Register and
• An inspection book.
• The Employees’ Register for workers assigned to the principal employer must also be kept up to date by the immediate employer.

#10:- What reports does the employer need to submit?

The following records must be submitted by the employer:

• A Form-12 Notice of Accident must be submitted to the relevant branch office.
• Records about the primary employer, such as attendance, pay, books of accounts, etc.

#11:- How do the workers register with the scheme?

An employee must give their employer their family photo and personal information when they start work that qualifies them for insurance so that the employer can register them online. For the duration of the employee’s insurable employment, this employee registration process is a one-time process. The insurance number that is generated online during the initial registration process must be used for the duration of the policyholder’s life, regardless of job changes or relocation.

#12:- How may an insured individual receive medical benefits when they are temporarily relocating to a different station?

The employee would be eligible to get medical benefits at any ESIC/ESIS dispensary in the nation by seeding an “‘On-line Aadhar Card and Card Number” for themselves and their family members, subject to eligibility. However, to easily obtain this facility, they must obtain a properly completed and signed Form 105 from their employers.

#13:- What is the duration and rate of payment for dependent benefits?

• Widow: Until death or remarriage at a rate of one-half of the total.
• Widowed mother until death at a rate of two-fifths of the full rate
• Single daughters receive one-fifth of the full rate until they tie the knot.
• To each kid at a rate of two-fifths of the full rate until he reaches the age of twenty-five.
• Even after turning 25 or getting married, if applicable, if the son or daughter remains ill and entirely reliant on the insured person’s income at the time of his death, they will still be eligible to receive the benefit.