This scheme basically is a health insurance scheme for Indian workers. Under this scheme a contribution is made by the workers and the employers to a fund which is maintained by ESI Corporation under the rules and regulations under ESI Act, 1948. Under this scheme the workers get medical and cash benefits for themselves and their families. At present ESI Corporation maintains more than 1500 hospitals for medical benefits to the workers and their dependents. Any non-seasonal factory who has employed ten or more workers (permanent or temporary), is covered under this scheme. For other establishments the limit is 20 or more. Though, some states have reduced the number of worker for other establishments from 20 to 10.
WHO IS COVERED UNDER ESI SCHEME?
With effect from 01.05.10, the worker who is drawing gross monthly salary excluding overtime, up to Rs.15000/=, is covered under this scheme.
BENEFITS UNDER ESI SCHEME
Following are the benefits to workers and their family as under ESI Scheme:-
- Unemployment Cash benefit to workers in certain cases.
- Maternity benefits to women workers.
- Disablement benefits to workers.
- In case of death of workers, the family pension is given to the dependent.
- Medical facilities are provided to workers and their dependents.
- Funeral benefits are given to the dependents of the workers.
CONTRIBUTION TO ESI FUND
4.75% of the total wages is paid by the employer and 1.75% of total wages is paid by the worker.
DEPOSIT OF ESI CONTRIBUTION
ESI contribution should be deposited on or before 21st of the month in which salary falls due. If the 21st is holiday then it can be deposited next day. The contributions should be deposited in any authorized banks, authorized by ESI Corporation in cash or by cheque or Demand Drafts in prescribed challan.
SUBMITTING OF ESI RETURNS
ESI returns are submitted with ESI Regional Commissioner half yearly. Half year means:- from 1st April to 30th September and 1st October to 31st March. Return relating April-Sept must be filed on or before 11th November and return relating to October to March should be submitted on or before 11th of May in form No. 6 along with ESI Challans.
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