{"id":148,"date":"2020-09-14T11:29:42","date_gmt":"2020-09-14T05:59:42","guid":{"rendered":"https:\/\/total-sols.com\/blog\/?p=148"},"modified":"2020-09-14T12:06:05","modified_gmt":"2020-09-14T06:36:05","slug":"top-3-features-that-msme-startup-business-entrepreneurs-should-make-note-while-computing-esi","status":"publish","type":"post","link":"https:\/\/total-sols.com\/blog\/top-3-features-that-msme-startup-business-entrepreneurs-should-make-note-while-computing-esi\/","title":{"rendered":"TOP 3 FEATURES THAT MSME\/STARTUP\/BUSINESS ENTREPRENEURS SHOULD MAKE NOTE WHILE COMPUTING ESI"},"content":{"rendered":"\n

ESIC\nis a self-financed social security and healthcare insurance scheme for the\nworking class, which has benefited a large number of workers in the unorganized\nsector who cannot afford the medical expenses. \nESIC is mandatory for a company with 9+ employees.<\/p>\n\n\n\n

The ESIC department may leverage data from various sources and\nissue notices which may come as a bolt from the blue.  Here are the top 3 mistakes\ncompanies should avoid while computing their ESIC applicability.<\/p>\n\n\n\n

1.         Erroneous Employee numbers: \n<\/strong><\/p>\n\n\n\n

For\nexample, a company XYZ applied for coverage from April 2020 when its employee\non roll was 12.  However, during\ninspection, the ESIC enforcement officer traced back records to January 2018 where\nthe number of employees already exceeded 10 by counting:<\/p>\n\n\n\n

  1. Employees on Roll -5
    1. Contract Employees including your Housekeeping Security &\nManpower 6<\/li><\/ol>
      1. Directors drawing salary 3<\/li><\/ol><\/li><\/ol>\n\n\n\n

        Totalling\n14<\/p>\n\n\n\n

        The\nabove scenario may attract penalty from the ESIC officer dating effective from\nJanuary 2018 even though the numbers have dropped below the threshold limit of\n10 later on.<\/p>\n\n\n\n

        • Leveraging data from departments such as PF, INCOME TAX & PT\nthey are catching discrepancies in Employee number . Information gathered from\nLabour Department, Professional Tax monthly returns, PF returns etc this will\ngive the number of employees.  ESIC\ndepartment will survey based on this and during the course of survey will\nmatch the Employee Attendance System\/ Attendance Registers of both the contract workers as well as\non-roll employees with the data leveraged from above-named PF returns,\nProfessional Tax monthly returns etc.  Sometimes\nthey further probe by taking a view of your balance sheet, salary statement,\nattendance register, professional tax registration copy, professional tax\nreturns, shops & establishment registration copy.  Huge discrepancies between the employee\nnumber declared in any of the above documents and that on record with ESIC may\nlead to fines<\/li>
        • Some key points to be\nnoted while computing the ESIC is that ESIC is applicable on gross salary with\na ceiling limit of Rs. 21,000\/-(Rs. 25,000\/- in case of physically challenged).  Employer contribution is 3.25% and employee\ncontribution is 0.75%.  If gross salary\nis above Rs. 21,000, (Rs. 25,000\/- in case of physically challenged) ESIC is not\napplicable.<\/li><\/ul>\n\n\n\n

          TOP SIX BENEFITS OF ESIC<\/strong><\/p>\n\n\n\n

          The ESIC was established to provide medical\ninsurance for eligible workers\/employees and to his\/her immediate family\nmembers.  Here are the top 6 benefits\nthat an employee\/worker registered under ESIC is eligible for:<\/p>\n\n\n\n

          MEDICAL BENEFIT:\u00a0<\/strong> Some key features:<\/p>\n\n\n\n

          1. Medical benefits are\nextended to the family members namely dependent brothers, parents and sister\n(until marriage).<\/li>
          2. No limit on the\nexpenditure of the treatment.<\/li>
          3. On annual payment of Rs.\n120, the retired, permanently disabled insured employees and their spouses are\neligible for free medical treatment benefits.<\/li>
          4. The employee\/worker\ninsured can opt for treatment at the nearest ESI facility available to them.<\/li><\/ol>\n\n\n\n

            SICKNESS BENEFIT:\u00a0<\/strong> <\/p>\n\n\n\n

            • About 70% of wages are\npayable to the insured worker\/employee for sickness up to a max of 91 days\/year\n(Member should have contributed for at least 6 months).<\/li>
            • Extended sickness\nbenefit of 80% of wages is provided up to two years in case of select (34)\nmalignant long-term diseases.<\/li>
            • Enhanced sickness\nbenefit amounting to full wage for a period of 7 days (male), 14 days (female)\nfor sterilization.<\/li><\/ul>\n\n\n\n

              MATERNITY BENEFIT:<\/strong><\/p>\n\n\n\n

              For pregnant employees\/workers, a period of 26\nweeks extendable by another month maternity benefit is paid @ full wages for\nthe above period (employee must have contributed at least 70 days).<\/p>\n\n\n\n

              DISABLEMENT BENEFIT<\/strong><\/p>\n\n\n\n

              1. Temporary disablement\nbenefit:  @ the rate of 90% of wage until\ndisablement lasts.<\/li>
              2. Permanent disablement\nbenefit: @ the rate of 90% of wage proportionate to the nature of disablement.<\/li><\/ol>\n\n\n\n

                DEPENDENT BENEFITS<\/strong><\/p>\n\n\n\n

                Paid at the rate of 90% of wage to the\ndependents in case of death due to employment injury or occupational hazards.<\/p>\n\n\n\n

                FUNERAL EXPENSES<\/strong><\/p>\n\n\n\n

                A sum of Rs. 15,000\/- payable to dependents or\nindividual who performs last rites on the death of the employee\/worker.<\/p>\n\n\n\n

                OTHER BENEFITS<\/strong><\/p>\n\n\n\n

                In addition, vocational and physical rehab, old\nage medical care and Rajiv Gandhi Shramik Kalyana Yojna unemployment allowance\nscheme are also some of the benefits of ESIC.<\/p>\n\n\n\n

                Thus, ESIC is a boon to employees\/workers who cannot afford medical treatment to avail free good quality medical facilities for both himself\/herself and to their family members.<\/p>\n","protected":false},"excerpt":{"rendered":"

                ESIC is a self-financed social security and healthcare insurance scheme for the working class, which has benefited a large number of workers in the unorganized sector who cannot afford the medical expenses.  ESIC is mandatory for a company with 9+ employees. The ESIC department may leverage data from various sources and issue notices which may […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[21,20,24,22,23],"class_list":["post-148","post","type-post","status-publish","format-standard","hentry","category-accounts","tag-benefits-of-esi","tag-esi-computing","tag-maternity-benefit","tag-notices","tag-sickness-benefit"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=148"}],"version-history":[{"count":2,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/148\/revisions"}],"predecessor-version":[{"id":150,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/148\/revisions\/150"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}