Other Company Compliances

ESI and EPFO are two main social security schemes of a company provided to the employees by their employers.

Employee’s State Insurance (ESI)

Employees’ State Insurance (ESI) scheme is a type of self –financing social security and health insurance scheme for the employees in the organized sector or workers in India. This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to the rules and regulations of ESI Act 1948.Employees’ State Insurance Corporation is a statutory body of India and Administrative Ministry (Ministry of Labour And Employment, Government of India).

Benefit of Employees’ State Insurance Scheme (ESI)

Employees’ State insurance is one of the most popular integrated need-based social insurance schemes for employees because the scheme protect the interest of employees in uncertain events like permanent or temporary physical disability , sickness, maternity ,injury during the time of employment and more.

The Employees or workers of any organization registered under the Employees’ State Insurance (ESI) Scheme are entitled to many benefits like, medical treatment for themselves and their family, unemployment cash benefit in certain contingencies and maternity benefit for women employees. There is provision for a disablement benefit and a family pension respectively in case of death or employment related disablement.

Eligibility for ESI

 Employees’ State Insurance Scheme applies to all types of establishments in India like corporate, factories, restaurants, cinema hall, and offices, medical and other institutions. All these units are called Covered units.

Criteria for Covered Units

• ESI (Employees’ State Insurance) registration is mandatory for all the employers who have 10 or more employees in their company.
• All those units which are covered under the Factory and Shops Act and Establishments act are eligible for this Scheme.
• The units that are located in the scheme implemented areas are also eligible for ESI scheme.

The Indian Government is planning to implement Employees’ State Insurance Scheme across the entire country by 2022.

Eligible Employees for Employees’ State Insurance Scheme

All those Employees of a covered unit are eligible to avail the benefits of ESI Scheme whose monthly income (excluding bonus, overtime, leave encashment) does not exceed Rs.21000 per month.

Employees whose daily average earning wages up to RS.176 are exempted from the Employees’ State Insurance Corporation (ESIC) Contribution. So, the employers contribute their share for these employees.