From 15th Feb 2020, new Companies registered through MCA Portal, need not comply with provisions of ESI Act till they reach threshold limit of ESI coverage or initial 6 months whichever is earlier. Submission of Mobile Number and Bank Account details shall be mandatory for registration of New employee and for settlement of benefits/claims reimbursements.
Employees State Insurance is a scheme initiated by the government to provide socio-economic protection to the working class and immediate dependents or family covered under the scheme. Insured persons are entitled to a variety of benefits in times of distress due to sickness, disablement, confinement (in case of insured women), etc. The Employee State Insurance Scheme is administered by the Employee State Insurance Corporation.
To make access to the scheme easier, ESIC set up its website on www.esic.in. Both employees and employers can log in to the ESIC portal to avail various services. The portal can be viewed in both Hindi and English.
The services provided on the portal are:
- Employers and Employee Registration
- Temporary Identification Card (TIC) Issuance
- Download E-Pehchan Card
- Online payment of Employers ESI Contribution
- Challan Generation for Contribution
- Cash Benefit Payment at Branch Offices
- Online Public Grievance
It is mandatory for an employer to get registered online on www.esic.in under the scheme within 15 days of the ESI scheme becoming applicable to his establishment.
The scheme is applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
To register, the employer shall submit the required information in the online screens and on successful submission, a 17 digit code will be generated. User ID and password will be mailed to the email address provided. An employer need not generate separate codes for different branches located in India but has to generate sub-codes for those branches that do not fall under the regional or sub-regional office of the main office.
The employer shall log in using the credentials that have been mailed to him and register the required minimum number of employees. If an employee is already registered as an Insured Person, employer shall enter his IP number and Date of Joining. If such person is not registered, the employer shall register him by providing the relevant details in the Employees Registration Form – 1.
In case, employer faces any problem, in registering a unit online, he can send an email giving the details of the problem encountered to [email protected]
After registering required minimum number of employees, employer may proceed to pay initial contribution. Payment maybe made offline or online. Once the challan gets realised from the bank, employer will receive the system generated Registration Letter (C-11) on registered Email ID and it can be used as a valid proof of registration of the unit under ESI Act.
ESIC Employee Log In : At the first time of employment, an employee may have to register under the scheme, all by himself, by providing the details required. On completion of registration procedure, a unique insurance number is generated which will be valid throughout the life of the employee, regardless of changes in employment.
The employee can later log in using ESIC Insurance Number (IP Number) as User Name and entering the captcha code.
ESIC Employer Log In: Employer can log in using the User ID and password mailed to him at the time of registration.
After registering, an employee gets a TIC (Temporary Identity Card) which is valid for 3 months within which he has to apply for the ESI Card (Pehchan Card). This card is used to avail the benefits of the scheme at empanelled hospitals and dispensaries.
To download the Pehchan card, employer needs to login to their account and fill in the worker’s details. Once the process is completed, a magnetic smart card will be issued to either the employee’s address or the employee may need to visit the ESIC branch to collect the same.
An e-Pehchan card may also be downloaded from the ESIC portal. An employer, after logging in, can find the e-Pehchan card of the respective employee in the ‘Employee’ section. It should be printed out and signed by employer or ESIC office, after employee signs and affixes family or dependents photograph.
After logging into the portal one can determine total contribution paid by him and his employer along with other benefits entitled under the scheme. From 1 July 2020, cash benefits/claims reimbursements will be settled only if the correct bank account details of the beneficiary are available in the system.
ESIC payment is currently enabled online only for SBI account holders. To make online payments employer has to log in to the ESIC portal and go to the ‘File Monthly Contribution’ hyperlink. After filling in the relevant fields, user is to submit the form and make payment. Payment may be made by generation of challan or via SBI Net Banking. Ensure saving the details of the transaction to avoid any future discrepancy. In case the status of the challan is not updated, employer may contact the grievance cell of the ESIC organisation.
The government reduced the rate of contribution under the scheme in 2019 from 6.5% to 4%. The revised rates are:
|ESI Contribution Rates||Previous Rate (%)||Revised Rate (%)|
|Total ESI Contribution||6.50||4.00|
The reduction is meant to increase the take home salary of workers and also enhance the ease of doing business.
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