FREQUENTLY ASKED QUESTIONS
1. What is the procedure for registration of an employer?
– An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.
2. Is it mandatory for the employer to register under ESI?
– Yes, it is mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.
3. What are the compliance requirements?
– Every employer covered under this act has to comply with various compliances such as deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership and the management, maintenance of registers and records etc.
4. Whether the benefits grant to insured employees are transferable?
– No, right to receive any benefits under this act is not transferable.
5. In which cities does LegalRaasta provide ESI Registration?
– LegalRaasta provides ESI application services across India in all cities. We have done ESI registration in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and other Indian cities.
6. Why should I choose LegalRaasta for ESI Registration?
– LegalRaasta.com is one of the best online service portals to help factories and establishments toget ESI registration in India. We have 10 years of experience in application of ESI Registration. LegalRaasta has 30+ regional offices in India and expand its network in India with 2000+ customers for ESI Registration.
7. Is it mandatory for the Employer to register under the scheme?
– Yes, it is the statutory responsibility of the employer register their Factory/ Establishment under the ESI Act within 15 days from the date when the act becomes applicable to them.
8. What is the ESI Code number?
– It is a 17-digit unique identification number allotted to every registered establishment. This number is generated through the ESIC portal on submission of the required information by the employer or generated on receipt of a survey report from the Social Security Officer.
9. Can an establishment or factory once covered go out of coverage if the number of persons employed falls below the minimum limit prescribed?
– Once a factory or an Establishment is covered under the Act, it continues to be covered despite the fact that the number of covered employees employed at any time falls below the required limit or there is a change in the manufacturing activity.
10. If the wages of an employee exceed Rs.15,000/- in a month, will he not be covered and deduction of contribution from his wages should be stopped?
– If an employee’s wages (excluding remuneration for overtime) exceeds the wage limit prescribed by the Central Government after beginning of the contribution period, he continues to be an employee till the end of that contribution period and therefore contribution is to be deducted and paid on the total wages earned by him.
11. Is over-time to be included for wage ceiling limit for coverage of an employee?
– No. Overtime is not included for calculating the wage ceiling limit for coverage of an employee. But, it is included for payment of contribution to cover the risk during the period of overtime work, and to enable receiving cash benefits at an enhanced rate also.
12. What is the time limit for payment of contribution?
– Contribution will be paid for an employee in to a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.
13. What is the mode of payment of contributions?
– The employer needs to file monthly contributions online through ESIC portal in respect of all its employees after registering them. The amount of contributions to be paid are to be calculated by keeping a record of, employee wise, number of days for which wages are paid & the amount of wages paid respectively to calculate the amount of contributions payable. The total amount of contribution (including the shares of the employees and employers) in respect of all the employees for each month must be deposited in any branch of SBI in cash or by cheque or demand draft on generation of such a challan through ESIC portals. Contributions can be paid online through SBI internet banking too.
14. Is there any interest on delayed payment?
– An employer who doesn’t pay the contribution within the time limit, will be liable to pay simple interest at the rate of 12% per annum for each day of default or delay in payment of contribution.
15. What are the records to be maintained for the purpose of the ESI scheme?
– In addition to the Muster roll, wage record and books of Account maintained under other laws, the employer is required to maintain the following records for ESI:-
- Accident Register in Form-11
- An inspection book.
- The immediate employer is also required to maintain the Employee’s Register for the employees deployed to the principal employer.
16. What are the reports to be submitted by the employer?
– These are the following reports to be submitted by the employer :
- Reports: Accident report in Form 12 in case any accident takes place, to the notice of the Accident.
- Absence verification report such as Employee Records including attendance, wages and books of accounts.
17. What is Registration of an employee?
– Registration is the process of recording information about the entry of an employee into insured employment, under the Act.
18. Why Registration of an employee is necessary?
– Registration of employee is the necessary to identify the employee and to provide such employee the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured persons.
19. What is an identity card?
– On registration under the scheme the employer can give a temporary identity certificate, affix employee’s photo and authenticate it for use which is valid for a period of 3 months. This identity card functions as an identification both for claiming medical benefit at dispensary/ hospital and claiming cash benefits at the ESI branch Office.
20. What is the scale of Medical Benefit?
– The scale of medical benefit includes a complete medical treatment from start to finish.
21. Whether the disablement or dependant benefits have a minimum period of work requirement?
– No. There are no qualifying conditions or contributory conditions attached for claiming disablement or Dependants benefit. Even if he meets with an employment related injury on the very first day or on any day before he completes his first contribution period, the benefit can be claimed.
22. What is the benefit admissible to dependents?
- Dependent are also entitled to full medical care as and when needed, to artificial limbs, artificial appliances etc. as a part of medical treatment.
- The medical benefit is also admissible to the dependents during the period the employee is claiming unemployment allowance. If he dies during this period, his family continues to receive the medical benefit till the completion of those twelve months.
- Reimbursement of expenditure incurred on the funeral of the deceased employee.
- In case of the death of the insured employee due to employment injury, the widow, widowed mother and children are entitled to Dependants’ benefit.
- Any benefit due to the insured employee at the time of death is paid to the nominee.
23. Who are the persons to be counted for coverage of an establishment?
– So long as the establishment employs a minimum prescribed number of persons it will continue to be covered under the Act whether these employees are employed at one place or at places separate from each other, as they are engaged in the organised activity of the same establishment. Thus, all the persons including those working in branches, registered. office, and sales office etc. irrespective of location are to be counted.
24. Who is a Principal Employer?
– A. Principal Employer is :
- In the case of a factory, these: –
- Managing Agent of the owner or occupier
- Legal representatives on the behalf of a deceased owner or occupier
- Manager of a factory.
- In the case of Establishments belonging to or under the control of Government of India
B. The Authority Specified
C. The Head of the Department (In the absence of a specified Authority).
In the case of other establishments: Person responsible for the supervision and control of the establishment.
25. Who is an Immediate Employer?
– Immediate Employer can be any or all of those enumerated below: –
- One who executes any work inside the premises of the principal employer of a factory or an establishment.
- One who executes the work in a factory or establishment outside the premises supervised by the principal employer or his agent.
- One who gives on hire the services of his own employees to the principal employer of a factory or establishment.
- A Contractor
26. Who are the persons to be covered as “Employees”?
– Any person employed for wages in or in connection with a factory or establishment, and:
A. Directly employed by the Principal employer, in a Factory or establishment within the premises or elsewhere, or in any part, department or branch of the factory or establishment.
B. Employees of the immediate employer:
- Being employed in the premises on any work of the factory or establishment
- Being employed outside the premises on the work in a factory or establishment outside the premises supervised by the principal employer or his agent.
- Employees lent or let on hire to the principal employer on any work of the factory
- Paid Directors of a company.
But the following are Excluded:
- An Apprentice
- An employee receiving wages above the ceiling limit for coverage prescribed by the Central Government.
- Member of the Indian Armed Forces
27. What are the periods of contribution and benefit?
– The financial year from April to March has been divided in to two six monthly contribution periods i.e. 1st April to 30th September and 1st October to 31st March of the next year. The relevant period of benefit corresponding to each period of contribution commences three months after the end of the that contribution period i.e. Jan to June and July to December (The calendar year has been divided in to two six monthly benefits periods).
28. What is ‘Sickness Benefit’?
– If an e-The scale of medical benefit includes a complete medical treatment from start to finish. mployee requires medical treatment and is absent from work for medical reasons, Sickness benefit is paid for the period of absence after it is confirmed by the Authorised Medical Officer, for a period not more than 91 days in two consecutive benefit periods (say one year) @ 70% of standard benefit rate, subject to payment of contribution for not less than 78 days in the corresponding contribution periods.
29. What is Disablement?
– Disablement is a condition resulting from employment injury, which may render the employee temporarily incapable of doing his work and necessitate medical treatment (temporary disablement). It may reduce his earning capacity (permanent partial disability) or it may completely deprive the employee of his ability of doing any work (permanent total disability).
30. What is an ‘Employment related Injury’?
– It is a personal injury to an employee caused by an accident or an occupational disease arising out of and in the course of his employment within or outside India.
31. When do Dependants receive Benefits?
– Dependants’ benefit is a monthly pension paid to the dependants of an employee who dies as a result of an employment related injury or occupational disease.
32. What is maternity benefit?
– Maternity benefit is cyclical payments to an insured female employee for specified period of absence from work, due to confinement, miscarriage or sickness out of pregnancy, premature birth of child or miscarriage or confinement. The amount of maternity benefit is equal to the standard benefit rate.
33. What are funeral expenses? Who is to be paid?
– A lump sum amount not more than Rs.10000/- appropriated towards expenditure on the funeral of a deceased employee, is paid either to the eldest surviving member of the family or if he is without family or not living with his family at the time of death, then to the person who actually performs the funeral of the deceased employee.
34. What is Standard Benefit Rate?
– Means average daily wages calculated by dividing the total wages paid during the contribution period by the number of day for which these wages were paid.