ESI Scheme Registration, Contribution and Allied Provisions

ESI Scheme Registration, Contribution and Allied Provisions: Any employer who becomes coverable under the Act can register online ( www.esic.in) and get registered. While registering online, the employer has to give correct and complete details. (the employer would be contacted through the email for communicating the access credentials to the employer portal, reset of password, etc.); once registered, the employer will be allotted a 17 digit employer code. Except for employers who supply manpower, all the employers can proceed with the compliance under the Act, without even visiting the ESI offices, as all activities, like registering the employees employed, filing contribution, generating challan for remitting contribution, filing periodical returns, etc. can be done online.

Should an employer who has operations all over the country, register only once where it’s head office is located, or should it get registered separately for each of it’s branch offices also?

An employer who is already registered under the ESI Act (who is having a 17 digit code) need not apply for registration afresh in respect of its branch offices located in different locations of the country. Instead, the employer can get a sub-code generated in respect of it’s branch offices (can be generated online) so as to comply with the provisions of the Act. Sub-codes need to be generated only in respect of offices located outside the jurisdiction of the Regional Office / Subregional office in which the main office is located. In other words, if the branch office is located in the same state in which the main office is also located, a separate sub-code need not be generated for the branch office; the branch can comply under the main code itself.

ESI Scheme Registration

Once registered, can an employer edit the details already furnished online ?

As regards details pertaining to the employer, like name of the employer, address, etc., the employer may submit a request online, supported by documentary evidence, and on approval by the competent authority, the change will get effected in the system. As regards details pertaining to the employees registered by the employer, except for the name and insurance number of the employer, all the other details, including dependant details, address of the employee, etc., can be edited by the employer.

How can an employer, who is registered under the Act, register it’s employees under the Scheme?

The employer, once allotted the ESIC registration number, can login to the employer portal and register it’s employees, as soon as they are employed by it. In case of first employment ( the employee has not worked anywhere before joining the employer), the employee has to register the employee under the ESI Scheme, submitting the details of the employee, his family members, place of residence of himself and that of his family members, the dispensary to which they want to avail medical treatment, etc; once registration is completed, the employee will be allotted an insurance number, which is unique and will be valid throughout the life of the employee, even if the employee changes job. In case, the employee is already having an insurance number, the employer has to enter that number and proceed with updating the details of the employee.

Can an employee, who is already having an insurance number, be allotted an insurance number afresh, when he joins a different organisation?

No. The insurance number is unique for each employee and is valid throughout the life of the employee, irrespective of his changing jobs. The eligibility criteria in respect of various benefits under the ESI Scheme is based on the number of days for which an employee is covered under the Scheme. The number of days for which an employee is covered under the Scheme is reckoned irrespective of the different employers under which the employee has worked. If an employee who is already having an insurance number is registered again, the employee might not satisfy the eligibility criteria in respect of various benefits, and as a result would be denied the benefits, which he /she would have got, had the fact of existing insurance number is disclosed.

Should the employer register all the employees employed by it under the Scheme, even if they are not entitled for benefits under the Scheme ?

No. As only those of the employees whose monthly remuneration (excluding overtime wages) does not exceed Rs.21,000 per month are entitled for coverage under the Scheme, the employer need to register those employees alone.

(However, for the purpose of coverage under the Scheme, i.e., whether the employer has employed ten or more employees, all employees employed by the employer, irrespective of the salary are reckoned).

Is it necessary to register temporary employees, casual labour, etc., employed by the employer apart from registering the employees on their roll ?

Yes. All employees, including casual labour, temporary employees, employees employed through contractors (outsourced) etc. have to be registered by the employer.

Who is responsible for the registration of contract employees employed in an organisation – the organisation where the contract employees are deployed, or, the contractor who has employed them?

The organisation which utilises the services of the contract employees need not register these employees under the Scheme, if they are already registered by the contractor. However, as the principal employer, that organisation would be responsible for the remittance of contribution in respect of such employees by the contractor under the ESI Act. So, the organisation employing outsourced employees should ensure that the contractor through whom these employees are employed is complying under the provisions of the Act.

What is the proof of registration of employees?

Once registered, in respect of employees who are being registered under the Scheme afresh, an insurance number is allotted and a Temporary Identity Card (TIC) is generated; this TIC is valid for a period of 3 months from the date of registration, within which the employee has to enrol for the Pehchan card. In case of employees who are already registered, their name would be linked to the current employer, which can be checked in the employer’s portal as well as the employees’ portal. Presently the TIC has to be linked with the Aadhar No. of the IP and his/her family members within the date mentioned on the TIC.

Whether any special provisions are there in respect of for physically disabled employees?

Yes. In respect of physically disabled employees, the wage ceiling is Rs.25,000/-, i.e., they are entitled to the benefits under the Scheme, till their monthly remuneration exceeds Rs.25,000 per month. As regards remittance of contribution, the employer is exempt from payment of contribution for four year in respect of the disabled employees (the Central government remits the contribution on their behalf). (However, the employee’s share need to be remitted by the employer).

What is the procedure for availing the special provisions in respect of physically disabled employees?

For availing the benefits of this provision, the disabled employee has to be registered as if he / she is an employee without any disability; subsequent to registration, the employer need to approach the branch office along with the documents in proof of the disability (for eg. certificate of disability issued by a Civil Surgeon). On submission of these documents, the branch manager would incorporate the details of disability in the system; once incorporated, these special provisions would come in to effect.

Are there any other exemptions in respect of any special category of employees ?

Yes. In respect of employees whose average daily wages is less than Rs.100 per day, the employee’s share need not be paid. However, the employer’s share (4.75% of the wages) need to be paid.

How is contribution to be paid by an employer arrived at and submitted ?

The employer has to file the details of contribution payable in respect of each month, latest by the 15st of the succeeding month, online. If the contribution is not filed and the amount payable remitted by 15st of the succeeding month, the employer would be liable to pay interest and damages for delayed payment. The employer can file the contribution in the respective screens in the employer portal, or it can use the prescribed spreadsheet template (MS-Excel) which can be downloaded from the employer portal and upload the template file, duly filled in.

Once contributions is filed and the amount payable arrived at, what is the mode of remittance of the contribution?

Once the contribution payable is arrived at, challan has to be generated for the said amount. Once the challan is generated, the same has to be paid online through the “Pay e-challan” link provided on the portal. (www.esic.in)

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