Employee State Insurance Corporation it is denoted as ESIC, which provides various benefits to employees and their family. ESIC filings are done Monthly. An organization with 10 or more employees, irrespective of the salary mark, need to register under the ESIC scheme. The employer must ensure that the purpose of the ESIC, that the benefit and betterment of the employees, is served without fail. ESIC Return is to be filed on or before the 15th of the following month. The Employee contribution rate is 0.75% of wages and 0.25% for employer (w.e.f. 01/07/2019). These rates keep on changing over time.
Who can be called as “principal employers”?
- In a factory
- Occupier
- Owner
- Legal representative of the occupier /owner
- Managing agent of the occupier/owner
- Manager of the factory
- In case of organizations
- Head of the Department
- The Specified Authority
Who can be called as “employees”?
- If the individual is employed directly by the employer or is employed in any department
- Employed within the premises for work
- By employees of the immediate employer
- Employed outside the premises for work
- Employed by the directors of the company
- Employees lent for fire to the principal employer
Benefits of ESIC Return Filing:
- Medical benefits: Complete medical care benefits are provided to the insured employees and their family members.
- Sickness and Disabled: Sickness Compensation is provided at the rate of 70% of wages to the insured employees and disability compensation is provided to the insured employees at a rate of 100% of the wages.
- Maternity benefits: It is provided at a rate of 100% of the wages
- Other benefits: It includes funeral expenses, vocational rehabilitation, physical rehabilitation, old age care, etc. are provided to the insured employees
Non-Payment or Late Payment of Employee Contribution: Employee Contribution is the amount deducted from employee’s wages is deemed to have been entrusted to the employer. A higher responsibility rests with the employer to deposit the contribution with ESIC. Non-payment or delayed payment of employee contribution amounts to ‘Criminal Breach of trust’ which is punishable under IPC Sections 406, 409 and an offence under Section 85(b-g) of ESIC Act and may attract fine upto Rs.5,000/-. A simple interest at a rate of 12% per annum shall be liable to an employer who fails to pay the contribution within the limit specified in the regulation