- Home |
- Employees’ State Insurance
Employees’ State Insurance
Exertion HR Employees' State Insurance (ESI) services
The ESIC scheme provides financial protection in the form of health benefits to employees, including maternity benefits, medical benefits, disability benefits, and more.
- ESI is one of the largest social security schemes globally, under the Ministry of Labour and Employment, Government of India.
- Our services include assistance with maternity benefits under the ESI Act.
- We conduct diagnostic reviews of it’s compliances and rectify any non-compliances identified.
- We provide guidance on contractor compliances and ensure accurate calculations for salary-based contributions.
Our team helps businesses with compliance under various subcodes and manages monthly contributions and compliances.
FAQ'S
Can an employee opt out of ESIC coverage?
ESIC Coverage is a social security and health insurance scheme governed by the Employees’ State Insurance Act, 1948. It provides medical, cash, maternity, and other benefits to employees and their dependents in case of sickness, disablement, or other contingencies. It applies to employees in factories or establishments with 10 or more employees, earning wages up to a specified limit.
- Opting Out: If an employee's salary exceeds the prescribed limit, currently set at INR 21,000 per month, they can choose to opt out of ESIC coverage. Once the employee's salary exceeds this threshold, they are no longer eligible for ESIC benefits and can request to be excluded from ESIC deductions.
How can employees check their ESIC contribution and benefit details?
- E-pehchan Portal: Employees can check their ESIC contributions by logging into the E-pehchan portal. This portal serves as an online platform where employees can access various ESIC related services. By providing their unique ESIC number and authenticating their identity, employees can view their contribution history, including the amount deducted from their wages and the corresponding employer contributions.
How are maternity benefits provided under ESIC?
- Duration of Maternity Leave: Female employees covered under ESIC are entitled to maternity leave for a period of 26 continuous weeks. This period of leave is applicable before and after childbirth. The 26-week duration includes any holidays falling within this period.
- Extended Maternity Leave: In certain situations, such as medical conditions or advice, the maternity leave under ESIC can be extended beyond 26 weeks by an additional month. This extension is provided if authorized by the appropriate medical authority.
- Maternity Benefit Amount: During the maternity leave period, eligible female employees receive maternity benefits from ESIC. These benefits include cash compensation equal to 100% of their average daily wages for the duration of their leave.
- Eligibility Criteria: To be eligible for maternity benefits under ESIC, female employees must have contributed to the ESIC for a specified duration preceding their maternity leave. The contribution period required for eligibility depends on the specific regulations outlined under the ESIC Act and rules.
Can an employee avail of ESIC benefits if they are working in a different state than their registered ESIC office?
- Yes, the employees can avail themselves of all ESIC benefits, irrespective of their location.
How are ESIC contributions calculated, and who contributes to the fund?
Here’s how ESIC contributions are calculated:
- Calculation of ESIC Contributions: ESIC contributions are calculated based on the gross salary paid to employees. The employer and the employee both contribute a specific percentage of the wages to the contributory fund.
- ontribution: As per the ESIC Act, the employer is responsible for contributing 3.25% of the wages paid to the employees. The employer is obligated to deduct their contribution from the employees' wages and deposit it into the ESIC fund.
- Employee Contribution: Employees covered under ESIC also contribute to the fund. As of now, employees contribute 0.75% of their wages towards ESIC. This amount is deducted by the employer from the employees' wages and remitted to the ESIC fund along with the employer's contribution.
- Utilization of the Fund: The contributions made by both the employer and the employee are utilized to provide insurance cover to the employees during difficult times. The fund is used to provide healthcare benefits, sickness benefits, maternity benefits, disability benefits, and other social security provisions to eligible employees and their dependents.