Applicability:
The Act is applicable to every non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. The ESI scheme is also extended to hotels, restaurants, news papers, Cinemas and road motor transport undertakings employing 20 or more persons. The existing wage limit for coverage under the ESI scheme is Rs.15,000/- per month. The Act continues to apply even after the number of persons employed is falls below the minimum coverage limit.
Registration:
The Employer has apply for registration under the Act with the ESIC, Regional office of the concerned area in Form 01 along with necessary documents such as
· Factory License,
· Memorandum and Articles of Association/Partnership Deed
· VAT / CST Certificate
· Latest Building Tax / Property Tax Receipt etc.
On receipt of all the required documents ESIC will register the employer and allot code number. The employer shall mention the code number in all further communication with the ESIC.
Contribution:
The employer shall contribute 4.75% of the wages and employee’s share is 1.75% of the wages.
The monthly contribution has to be remitted on or before 21st day of the subsequent month.
Returns:
Half yearly returns have to be submitted in Form – 5 by the employer on or before 12th May and 11th November respectively. The Annual information has to be submitted in Form 01-A.
Records:
The employer shall maintain following records:
· Register of employees in Form – 6
· Accident Book in Form – 11
· Inspection book under Regulation 102A
· Copies of returns of declaration forms
· Copies of returns of contributions, Challans etc.
· Other general correspondence.
