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As per Employees' State Insurance Corporation (ESIC) circular no. P-11014/3/2022-Bft-II (Part-1), the provision for seeding and authentication of Aadhar of Insured Persons has been implemented in the ESIC to create ABHA No. (Ayushman Bharat Health Account) which is a unique identity and shall identify a person and update his health records across multiple Healthcare service providers.

You are requested to please ask your employees to seed their Aadhaar numbers with ESIC Insurance Number.

Click here to read the Poster I

Click here to read the Poster II

The ESIC vide circular No. P-11014/3/2022-Bft-II, directed all regional offices to correct the particulars as provided by insured person.

Click here to read the notification

The Employees’ State Incorporation Corporation (ESIC), vide Circular No. F. No. I-21013/l/2022/ICT, released guidelines for an employer to seed Aadhaar Number of an employee during the process of registrations.

Click here to read the notification

CategoriesESINo Commentson Latest ESIC Updates w.e.f. 1st October 201913,787 viewsShare

What is the ESI Act of 1948?

The Employee State Insurance Act of 1948 provides social security that Indian employees can avail of in certain health-related occurrences during the employment period. It’s self-financing and contributory in nature. This Act aims to protect the employees, who are registered under the Act, against health eventualities that the employees are generally exposed to, like sickness, maternity, disablement- temporary or permanent, or death due to employee injuries. This Act also includes providing medical care to family members.

The fund contributed to this Act, by the employees and the employers payable monthly at a specified rate of the Wages/Salary/Pay, are managed by the ESIC (Employees’ State Insurance Corporation).

ESI Contribution Rate w.e.f. 01.07.2019:

• By the Employer: 3.25%
• By the Employee: 0.75%

Earlier the ESI Contribution Rate was  4.75% for Employer whereas  1.75 % for Employee.

There are 6 social security benefits provided to employers under this Act:

1. Medical Benefit

2. Sickness Benefit

• Extended Sickness Benefit
• Enhanced Sickness Benefit 

3. Maternity Benefit

4. Dependants Benefit

5. Disablement Benefit

• Temporary
• Permanent

6. Other Benefit

• Funeral Expenses
• Vocational/Physical rehabilitation
• Old-Age Medical Care

Read Here: Nagaland Minimum Wages (W.E.F June 2019)

ESI Eligibility

Employees with monthly wages of Rs.21,000 and below are covered in this Act. Earlier, the wage limit was Rs.15000 which was increased to Rs.21,000 from 2017.

Employees with daily average wages not exceeding Rs.176 are exempted from paying employee ESI contribution.

The scheme applies to factories and other establishments stated under the Act and notification issued by the Government.

Salary/Wages/Pay Components for estimating the ESI Contribution

The ESI Contribution is calculated based on the Gross Monthly Salary/Wages/Pay of employee/employer. Gross Salary is employee/employer earning before any deductions made.

Gross Salary includes :

• Basic Pay,
• Dearness Allowance (DA),
• City Compensatory Allowance,
• House Rent Allowance (HRA),
• Incentives
• Attendance and overtime
• Payment for Unsubstituted Holidays
• Meal Allowance
• Uniform Allowance
• Other Special Allowances

It does not include Leave Encashment, Gratuity on Discharge/Retirement, Retrenchment Compensation, Washing Allowance, and Annual Bonus.

Read Here: Kerala Minimum Wage (W.E.F May 2019)

New ESIC Changes w.e.f. 1st October 2019

1. New Employee Enrollment:

The new employee has to be registered online through the ESI portal on the date of appointment and a maximum of 10 days of the Date of Joining, the portal will allow the registration. After 10 days, the portal will not allow the registration. If the new employee is already registered in ESIC then no new number is supposed to be issued as the old card will still work even if there’s a change of job.

Generally, the new employees were enrolled in ESI at the end of the month.

2. ESI Permanent Card for Employees:

The new update allows the employees to get their biometric ESI Permanent Card. They have to visit the ESI Branch Office and complete the formalities and after that, they can collect their cards from their nearest ESI Branch office.

Earlier, a yellow card was used to be issued that was later replaced by a printed form (e-Pehchan Card) that used to be collected from the HR Department allowing medical benefits from the ESIC Hospitals and Dispensaries. Now the yellow card called ESI Permanent Card is back. Get a printed form (e-Pehchan Card) from your HR Department and submit to ESIC Office. While registering online, you’ll be able to see the last date to get your card with the complete address of the ESIC Office you have to reach to get your biometric registration.

The benefit of this Permanent Card is that whenever you change your job, you can still use the same ESI Card to avail of the medical facilities provided under the ESI scheme.

3. ESI Contribution Deposit Period:

The ESI Contribution must be deposited within the due date. And the maximum days are 42 days from the end date of contribution period in which you can deposit the contribution against the employee because, after the due date, you’ll not be able to deposit as the portal will restrict you from doing so.

Earlier the ESI Contribution against the employee was supposed to be deposited within the next 15 days of the next month of the due date. After which you were still able to deposit with paying some penalty and interest. But the latest ESIC update restricts you from doing so.

4. Exemption of Wage Contribution Update:

According to the Code on Wages, the National Minimum Wage was revised to Rs.176 per day which is not legally binding on States. Taking this into consideration, the ESI department has stated that if any employee daily wage is less than Rs.176, they don’t have to pay their employee ESI Contribution. Their contribution will be instead paid by the Government. But the employer still has to pay their share contribution.

Earlier the exemption limit for payment of employee contribution was Rs.137 per day.

If you face any issue regarding ESI then consult with ESI PF Consultant in Delhi.

This is pertaining to the fact that the Deputy Director of ESIC has issued a circular vide number 51/N/19/15/DBMisc/Bfts on date 25.10.2022. Such circular has mandated the management/ employer to insert the correct unique bank account number of employees registered under the Employees State Insurance Corporation (hereinafter referred to as “ESIC”).

In the above-mentioned circular, it is categorically required that the employer is bound to insert the correct and unique bank account of Employees who avail of the services provided under ESIC.

The above compliance is required to be done to avoid misuse and reduce any conflict of interest between the concerned insured persons and their vested interest therein. Any such incorrect/false/ improper data inserted by the Employer in the ESIC portal will be strictly observed by the ESIC department.

Further, the ESIC has strictly observed that if multiple employees’ are tagged in a single bank account number, then the liability for such non-compliance shall attract criminal charges like the offense of “cheating” as defined under section 415 Indian Penal Code, 1860.

Therefore it is a bona fide suggestion to ascertain that bank and other details of the employees are properly and correctly fed into the portal of the ESIC and that individual bank accounts of employees’ are inserted correctly for the employer.

What is ESIC ?

“An act to provide for certain benefits to employees in case of sickness, maternity, disablement and death due to employment injury and to make provisions for related matters. And Provide medical care to insured persons and their families.”

ESIC Eligibility and Contributions

• Monthly Gross Wages less than Rs. 21,000/- per month.
• Employees’   :    .75% on Gross monthly wages.
• Employer   :    3.25% on Gross monthly wages.

ESIC Insurance Benefits to employees

• Sickness Benefit
• Disablement Benefit
• Dependants’ Benefit
• Maternity Benefit
• Medical Benefit

Other benefits being provided to the beneficiaries are Confinement Expenses, Funeral Expenses, Vocational Rehabilitation, Physical Rehabilitation, Unemployment Allowance and Skill Up gradation Training.

Eligibility conditions, duration & scale of benefits

SICKNESS BENEFIT

A.Sickness Benefit

Eligibility: Payment of contribution for 78 days in corresponding Contribution Period.

Duration & scale of benefits: Up to 91 days in two consecutive Benefit Periods.

Rate: 70% of the average daily wages.

B.Enhanced Sickness Benefit (For Vasectomy/Tubectomy)

Eligibility: Payment of contribution for 78 days in corresponding Contribution Period.

Duration & scale of benefits: 14 days for Tubectomy & 7 days for Vasectomy, extendable on medical advice.

Rate: 100% of the average daily wages.

C.Extended Sickness Benefit

Eligibility: For 34 specified long term diseases, continuous insurable employment for two years with minimum 156 days’ contribution in four consecutive Contribution Periods.

Duration & scale of benefits: 124 days during a period of two years. This may be extended up to two years on medical advice.

Rate: 80% of the average daily wages.

DISABLEMENT BENEFIT

A.Temporary Disablement Benefit

Eligibility: From day one of entering insurable employment for disablement due to

employment injury.

Duration & scale of benefits: As long as temporary disablement lasts.

Rate: 90% of the average daily wages approx.

B.Permanent Disablement Benefit

Eligibility: From day one of entering insurable employment for disablement due to

employment injury.

Duration & scale of benefits: For whole life.

Rate: For permanent total disablement – 90% of the average daily wages. For permanent partial disablement – Proportionate to the loss of earning capacity as determined by medical board.

DEPENDANTS’ BENEFIT

Eligibility: From day one of entering insurable employment in case of death due to

employment injury.

Duration & scale of benefits: For life to the widow or until her re-marriage. To dependant children till the age of 25 years. To dependant parents etc. subject to conditions.

Rate: 90% of the average daily wages shareable in fixed proportion among all dependants.

MATERNITY BENEFIT

Eligibility: Payment of contribution of 70 days in two consecutive contribution periods.

Duration & scale of benefits: Up to 12 weeks which can be further extended upto 16 weeks on medical grounds in case of confinement. Up to 6 weeks in case of miscarriage. Extendable by 1 Month on medical advice in case of Sickness arising out of Pregnancy, Confinement, Miscarriage.

Rate: 100% of the average daily wages.

MEDICAL BENEFIT

Eligibility: ‘Reasonable medical care’ for self and family from day one of entering insurable employment.

Duration & scale of benefits: Reasonable medical care till he/she remains in insurable employment.

Medical Benefit under the ESI Scheme has now been extended to the widow/spouses of deceased/retired/superannuated Insured Persons as well as to the widow/spouses of Insured Persons who ceases to be in an insurable employment on account of Permanent Disablement, and also to widows of Insured Persons who are in receipt of Dependants’ Benefit.

OTHER BENEFITS

A.Confinement Expenses

Eligibility: An Insured Woman or an I.P. in respect of his wife is eligible if confinement occurs at a place where necessary medical facilities under ESI Scheme are not available.

Duration & scale of benefits: Up to two confinements only.

Rate:  @ Rs.1000/- is paid to an insured woman or in respect of the wife of an insured person in case she does not avail medical facilities of the scheme for child delivery.

B.Funeral Expenses

Eligibility: From day one of entering insurable employment.

Duration & scale of benefits: For defraying expenses on the funeral of an Insured Person.

Rate: Actual expenses subject to a maximum of ` 15000/- .

C.Vocational Training

Eligibility: in case of disabled insured persons under 45 years of age with 40 percent or more disablement.

1. Physical Rehabilitation

Eligibility: In case of physical disablement due to employment injury.

Duration & scale of benefits: As long as a person is admitted in an artificial limb centre.

Rate: 100% of the average daily wages.

1. E. Unemployment Allowance – Rajiv Gandhi Shramik Kalyan Yojna (RGSKY)

Eligibility: In case of involuntarily loss of employment due to closure of factory, retrenchment or permanent invalidity due to non-employment injury and the contribution in respect of him have been paid/payable for a minimum of three years prior to the loss of employment.

Duration & scale of benefits: Maximum twelve months during life time.

Rate: 50% of the average daily wages.

F.Skill Up gradation Training under RGSKY

Eligibility: In case of involuntarily loss of employment due to closure of factory, retrenchment or permanent invalidity due to non-employment injury and the contribution in respect of him have been paid/ payable for a minimum of three years prior to the loss of employment.

Duration & scale of benefits: For a duration of maximum 6 months.

Covid Pandemic Benefits

Eligibility: In  case  the  IP  or  family  member  being  infected  with  COVID-19  takes  treatment  in  any private institution, the reimbursement of expenditure may be claimed.

Cash Benefit

In case the Insured Person abstains from his work being infected with COVID-19, he can claim  Sickness  benefit  for  his  period  of  abstention  as  per  his  entitlement.  Sickness benefit is paid @ 70% of average daily wages for 91 days.

In case any Insured person becomes unemployed, he may avail relief under Atal Beemit Vyakti Kalyan Yojana (ABVKY) under @ 50% of average per day earning for a maximum 90 days.  For  availing  this  relief,  the  Insured  Person  can  submit  his  claim  online  at www.esic.in.

In  case,  any  Insured  Person  becomes  unemployed  due  to  retrenchment  or  closure  of  factory/ establishment as per ID Act, 1947, he may claim unemployment allowance for a period of 02 years subject to qualifying conditions under RGSKY.

In the event of unfortunate demise of any Insured Person, funeral expenses of Rs 15000/- are paid to the eldest surviving member of his family.

How to Login IP Portal Secure Login By Insured person?

IP Portal Login through www.esic.in

Sign Up process for IP

Sign Up process for IP

IP Portal Login

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