Questions About Benefits And Importance of ESIC for Start-ups & SMEs Answered
ESIC and its importance and benefits for an organisation. When we started to grow as a team we kept ourselves notified on SpiderG App to help us save fines. And SpiderG App just did the needful by notifying us about the various registrations timely. Like for PF we got notification when we were 20. We get timely notifications of taxes to be paid and we have our notifications for PF, ESIC payments to be made on every month’s 15th. We kept our team in the loop for every possible experience we had, and we always discussed about possible new developments.1. What is ESIC Employee State Insurance Scheme?
ESIC is a social security and health insurance scheme for Indian workers and employees in the organised sector which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc to the employees and their family. Governed by Labour Law and managed by Employee State Insurance Corporation i.e. known as ESIC as per the ESI ACT 1948 . To know more about ESI follow the link.
2. How the Scheme is funded?
The ESI scheme is self-funded built upon funding from employees and employer payable monthly at a fixed percentage of wages paid.3. Who all come under the ESI ACT?
All factories where 10 or more persons are employed attract coverage under Section 2(12) of ESI Act. Further, according to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI coverage.(i) Shops (ii) Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’. (iii) Cinemas including preview theatres; (iv) Road Motor Transport Establishments; (v) Newspaper establishments. (that is not covered as factory under Sec.2(12)); (vi) Private Educational Institutions (those run by individuals, trustees, societies or other organisations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centres, pathological labs). In some states coverage is still for 20 or more persons employed under sec 1(5). A few State Governments have not extended scheme to Medical & Educational Institutions.
4. When is ESI Required?
Any organisation falls under the category mentioned in the above details with the employee base more than with the salary range of Rs. 21,000/-Wage limit was increased from Rs. 21,000/- from Rs. 15,000/-in the year 2016
5. Benefits of ESI?
ESIC supports through its branch offices, dispensaries and hospitals located all across India.Sickness benefits in form of salary and medical benefits and facilities to the employee and his/her family.Maternity benefits, Disability benefits covering both temporary and permanent disablement benefits. And others benefit like covering funeral expenses, rehabilitation, old age medical care etc. To know details about the above benefits you can follow the link
6. Documents Required for registration?
Certificate of Incorporation LLP/Pvt. Of the companyAddress Proof, Pan Card, Company’s Bank Account and all Tax related Certificates, KYC documents of employees to the employerRegisters containing information about the employment, salaries, attendance, etc. of the employeesCopy of the recent bank statement of the company.Any other documents demanded by ESI office of your region.
As and when you grow SpiderG App helps you keep your records clean, employees happy and sage and taxes paid. Just download our App from play store or log on to www.spiderg.com .
If you are new to our blogs let me just take you through the substance we are sharing here. We are sharing our experience as a start-up and hurdles we came across as a young organisation. We decided to come up with our very own blogs of experience we face as an organisation to encourage the youth to move ahead in the business would more efficiently than we did earlier. We will soon feature blogs by CEO, CTO and our team mates sharing their experiences with you.If you are our repeated visitors, we thank you for following our feeds.
Chief People Officer @SpiderG