Employee estate Insurance Corporation abbreviated as ESIC, it is social security and health scheme which covers sickness, disablement or death issues of the employee and there family also; it is in the welfare of employee for Indian workers. ESIC comes under Employees’ State Insurance Act, 1948; it is founded in 24 February 1952 by the Ministry of Labor and EmploymentGovernment of India.

ESIC (Employee Estate Insurance Corporation)  

ESIC Registration Applicability:

The ESIC scheme is applicable to all factories and other establishments as defined in the Act 1948, these things are covered under the scheme:

  1. Any organization which has 10 or more then 10 employee it comes under ESIC and the limit for 20 employees in Maharashtra and Chandigarh.
  2. The Wages/Salary limit for the same is Rs.21,000/- per month (Twenty One Thousand), the earlier limit for the same is Rs.15000/- and it has been changed to Rs.21,000/- from 01-January-2017.
  3. In the case of employee disability the wages/salary limit is Rs.25,000/- (Twenty Five Thousand) per month.

 

ESIC contribution rates:

 

Particulars Current Rate Old  rates
Employer Share 3.25% 4.75%
Employee Share 0.75% 1.75%
Total 4% 6%

The ESIC contribution rates has reduced w.e.f 01-July-2019, 6 % to 4%.

Benefits of ESIC Services:

  • Medical Benefit: ESIC covers of individual medical expenses by provide reasonable medical facility; it’s effective from the date of employment.
  • Disability Benefit: In case of employee permanent disablement or injury, ESIC ensures the employee paid their wages or salary.
  • Maternity Benefit: ESIC provides a total of 100% of the average daily wages for a period of to 26 weeks from the time of going into labor and 6 weeks in case of a miscarriage. 12 weeks of pay is provided in the case of an adoption.
  • Sickness benefit: 70% of the salary is getting paid at the time of sickness the maximum period is 91 days for the same.
  • Unemployment Allowance: ESIC provide monthly allowance, for a maximum period 24 month due to involuntary loss of employment.
  • Dependent’s Benefit:In case employee death due to an injury at the place of employment, ESIC will provide monthly payments among the surviving dependents.

ESIC Registration:

The following documents are required for ESIC Registration:

  • Certificate of Registration of the P.L company
  • License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act
  • Employees Details with their monthly compensation
  • List of partners or directors of the company or establishment
  • The company’s bank statements
  • Address proof and PAN Card of the business establishment or company

EPF (Employee Provident Fund)

The Employee provident fund abbreviated as EPF, it is social security scheme providing a monetary benefit to all salaried individuals after their retirement, or before retirement for financial emergency it comes under the Employees’ Provident Funds and Miscellaneous Act, 1952.

EPF Registration Applicability:

  1. Any organization having more than 20 employees mandatory to take EPF Registration.
  2. The Maximum limit for salary is Rs.15,000/- (Fifteen thousand) after the EPF Deposit is voluntary basis.

EPF contribution rates:

Category Employer Contribution Percentage % Employee Contribution percentage %
Employee’s contribution 12%
Employees Provident Fund 3.67%
Employees’ Pension Scheme (EPS) 8.33%
EPF admin A/c Charges .5%
EDLI A/c Charges .5%
Total 13% 12%

Benefits of EPF Services:

  • It helps in saving money for the long term period.
  • It helps an employee financially during an emergency.
  • Your company or employer’s contribution to the EPF account is free from taxes.
  • Provide the handsome amount of money at the time of employee retirement.
  • Provide the good interest rate; the current interest rate is 8.65%.

 EPF Registration:

The following documents are required for EPF Registration:

  • Certificate of Registration of the P.L Company.
  • License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act.
  • Employees Details with their monthly compensation.
  • List of partners or directors of the company or establishment.
  • The company’s bank statements
  • Address proof and PAN Card of the business establishment or company
  • Consent letter of the company
  • Previous EPF No if have