It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the 'employees' in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.

The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his health and working capacity. It provides financial assistance to compenstate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.

Yes, it is the statutory responsibility of the employer under Section 2 –A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.

The Factory or Establishment to which the Act applies is to be registered by logging into ESIC Portal i.e. www.esic.in The employer is supposed to sign up, providing company name, principle employer’s name, State and region as well as e mail address. The employer trying to register would get a password into his mail id. The employer can log in to www.esic.in and his mail ID can be used as user ID and the password received has to be accessed from the mail box to be used to register his unit by providing information in the Portal. Automatically a 17 digit code number is generated after successful registration.

It is a 17 digit unique identification number allotted to each of the factory/establishment registered under the provisions of the Act. Such a number is generated through ESIC portal on submission of the pertinent information by the employer or generated on receipt of Survey report from the Social Security Officer.

Contribution shall be paid in respect of an employee in to a bank duly authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution falls due for any wage period.

Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted (Sec. 40(4). Non-payment or delayed payment of the Employee's contribution deducted from the wages of the employee amounts to ' Breach of trust' and is punishable under IPC 406.

The Employer has to submit following records:

1. Accident Report: Notice of Accident to the concerned Branch office in Form -12 should be submitted on-line within 24 hours.
2. Abstention verification Report: It is required to be submitted to the Branch office as and when it is sought by the Branch Manager in respect of any IP.
3. Records including attendance, wages and books of accounts etc. in respect of principal employer and records of immediate employer as required by the Labor Laws.

At the time of joining the insurable employment, an employee is required to provide his and his family details to the employer along with a family photo so that the employer can register the employee online. This exercise of registering an employee has to be a onetime exercise in life time of an employee. The insurance number generated on the first occasion of registration is to be used throughout his life time irrespective of change of employment including change of place.

On registration under the scheme the employer can take a print out of the temporary identity certificate, affix the photo provided by the employee and authenticate it for use which is valid for a period of 3 months. As soon as possible but not later than a month, the insured person along with his entire family should get themselves enrolled to obtain a “Pehchan Card”. This identity card serves as a means of identification both for availing medical benefit at dispensary/ hospital and availing cash benefits at the ESI branch Office. Any changes in his residence/ dispensary/ employment can be carried out by the employer in the Portal as and when arises.

The present wage-limit for coverage under the Act, is upto Rs.21,000/- per month (with effect from 1.01.2017).

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. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

The following is the step by step procedure to make payment and file monthly contribution (ie. Monthly Return) under ESIC:

• 1

  Log in to ESIC Portal with your log in credentials

• 2

  Click Monthly Contributions under Monthly Contribution heading

• 3

  Select the month, year, contribution details type as monthly contributions and enter Employer’s Code Number and then submit

• 4

  Once you submit, a separate window will be opened to fill the data. Enter the No. of days, Total monthly wages and then click next button for filing details in next page. Employee Contribution will be calculated and displayed. This is rounded to next higher rupee. Click Save button, so that Employer can make changes later on or provide details of remaining IPs contribution.

• 5

  After entering all the contribution data in all the pages, submit the details by clicking ‘Preview’ button, you will get Contribution Submission Summary Page. Before clicking the submit button, please verify the data field, Contribution will be Submitted and you will get Create Challan Link. (Please note-Once Contribution is submitted it can’t be modified. Employer can modify details only by filing supplementary contribution).

• 6

  Click on Create Challan Link, if you want to create a challan or you can create the challan from revenue menu. Click on submit to generate the challan number.

• 7

  Once you submit the button, a challan number will be generated and click continue to make payment by accessing the payment gateway. Select the bank and make payment. Once the payment is made, a receipt will be generated and transaction completed successfully message will be displayed. That’s the monthly payment and return filing is done.