As per the new ESIC circular “the provision of regulation 31 shall be read as 45 days instead of 15 days for the contribution payable for the month of February and March only.”
The Director of the ESI Corporation (ESIC) relaxed the filing period of ESI contribution for both the employers and employees. It is due to the critical pandemic situation of Coronavirus /COVID-19. This relaxation will not create any change for any existing employees working in companies and contributing to the ESI.
The ESI contribution rate for FY 2019-20 is 4% (ie, employer – 3.25 % + employee – 0.75%).
The employee’s wage limit was increased from Rs 15,000 per month to Rs 21,000 per month in December 2016 to get eligibility for the ESI coverage.
The ESI Act applies to all the business places that have 10 or more employee. It also applies to both the organised and unorganised sectors.
A registered employee under the ESI can enjoy the following benefits:
- Medical, maternity, disability and dependent benefits as per the ESI Act, 1948.
- Full medical care to all registered employee during his incapacity, restoration of his health and working capacity.
- Financial assistance to compensate for the loss of wages during his leave because of sickness, maternity and employment injury and during the hospitalization in any ESI hospital.