Employees state Insurance Act Scheme, 1948

ESI Scheme

Employees state Insurance Act, 1948 is the first social security benefit scheme launched in the Independent India with an aim to provide medical benefit to employees in case of sickness, Injury during the course of employment

ESI Scheme is administrated and supervised by Employee state Insurance Corporation have been constituted under ESI Act, 1948.

Benefits Employees state Insurance Act Scheme

  1. Medical Benefits
  2. Maternity  Benefits
  3. Disability  Benefits
  4. Sickness Benefits
  5. Dependents Benefits
  6. Funeral Expenses Benefits
  7. Confinement Expenses Benefits

Lex N Tax is know for the Best ESI Registration services in jankpuri, ESI Registration services in west Delhi &

ESI Registration Services in Delhi NCR.

Power & Duties of Employees state Insurance Corporation (ESIC)

As per Section-19 of ESI Act-1948 the ESIC have the power to promote and take measure for the improvement of the health and welfare of insured person and for the re-habilitation and re-employment of Insured person.

Section-29 of ESI Act-1948, Give Power to ESI to

a) Acquire and hold both movable & immovable property, sell or otherwise transfer the property

b) It can invest or reinvest any money which are not immediately required for expenses  and realize such investment

c) It can raise loan or discharge loan with the prior approval of central Government

Applicability of ESI Act -1948

As per Section-2 of ESI Act, 1948 shall be applicable to all establishment where Number of employees is 10 or more without the aid of power and the establishment where no. of employees is 20 or more working with the aid of power.

Salary Limit for ESI Deduction

With effect from 01.01.2017 every employee whose gross salary is up to Rs 21000/- shall be eligible for availing the benefit of ESI scheme

Rates under ESI Act -1948

Employer contribution to ESI Shall be 3.25% of Gross salary & Employee contribution to ESI is 0.75 % of gross salary. (w.e.f 01.07.2019)

Both Employer & Employee contribution to ESI Act-1948, shall be remitted to ESI fund by 15th of every month.

Creation of Fund

Section-26 of ESI Act, 1948 clearly state that all contribution paid under this act and all other money received by corporation under this act shall be remitted in fund called ESI fund which is totally controlled by ESIC

Utilization of Fund

1) Payment of benefits and provision of medical treatment and attendance to insured person and where medical benefit is extended to family in accordance with the provision of act.

2) Payment of fees & allowance to members of the corporation.

3) Payment of salaries, Leave & Joining time allowances, travelling & compensatory allowances,   Gratuity and compassionate allowance, Pension, Contribution to provident fund and other benefits of officer or servant of organization.

4) Meeting the cost of auditing the Accounts of corporation and valuation of assets and liabilities.

5) Meeting the cost of ESI court set up under this act.

The benefits of ESI Scheme shall be availed by Family of employee and definition of family as mentioned in Section 2 (11) of Employee State Insurance Act-1948. Family Include

 1) A spouse

 2) A minor child whether legitimate or adopted

 3) A child who is wholly depend on the earning of insured person and who is

      a) Receiving education till he or she is attain the age of 21 year

      b) An unmarried Daughter

4) A child who is disabled by the reason of any physical or mental abnormality or injury and is wholly dependent on the earning of the insured person as long as Disability continue

5) Dependent parent whose income from all sources is upto the limit specified by Central Government

6) In case insured person is unmarried and his /her parent is not alive a minor brother or sister wholly dependent of insured person.

Lex N Tax always ready to support you and gives Best ESI Registration in Delhi NCR.

Penalty and Damages

  1. If someone made false statement than that will be fined Rs.2000 with imprisonment.
  2. Punishment for failure to pay contribution as of 3 years of imprisonment with penalty. (employee)
  3. Power of recover of damages employer will be fined with penalty. (employer)
  4. Power of court to make orders as if court passed an order and employer is not taking initiate then he or she can be liable for penalty of 1000 for everyday u/s85 with imprisonment.

Why Choose Lex N Tax Associate

1) Team of Lex N Tax Associates consist team of professionals like Chartered Accountants, MBA, Advocates who are proficient in handling EPF & ESI Registration.

2) Lex N Tax provides Best ESI Registration in Delhi NCR.

3) We are the leading firm in case of GST Refunds, TDS Compliances, Income Tax Cases, and PF & ESI Compliances.

4) Lex N Tax always ready to solve yours doubts regarding how esi scheme works, what is esi scheme in india, ITR filing, GST etc.

~By Deepa

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