Instabill
|
5 Recent Amendments in ESI Act 1948
Evidently, the provisions of the Employees’ State Insurance Act 1948, provide for financial assistance to workers. Such assistance is accessible to the workers of an organization having ESI registration, in case of certain health-related issues that the workers might face, such as-
- An illness,
- Maternity leaves,
- Acute or chronic disablement,
- Occupational injury or ailment
- Sudden demise while at the job.
Often such issues impact the immediate loss of wages and resultantly financial crisis.
Certain social securities benefits under the ESI Act intend to balance or nullify the subsequent physical or monetary loss in such mishappenings.
Recently, the government has amended the ESI Act 1948 and has introduced certain new provisions for the workers and employers. These new provisions are made effective from 1st October 2019.
Here are the 5 noteworthy Changes made in the ESI Act.
#1. Compulsory ESI registration of employees
As per the new provision, the employees of the organized sector are now compulsorily required to obtain ESIC registration online within 10 days from the date of their appointment. Henceforth, the ESIC online portal shall now allow a maximum 10 days only to the employers for providing ESI registration to their new joinee.
#2. Compulsory ESI registration Card
Another new provision of the ESI Act states that the employees who have already obtained the esic registration will now have to collect their Biometric scanned ESI registration Permanent Card from the nearest ESIC Branch Office. The employers are now required to provide the ESI registration Card to all their employees, which will serve as the evidence of ESI registration.
#3. Timely deposit of ESI Contribution
As per the ESI Act, a certain contribution has to be deposited against employees as well as employers within the due date. Now a new rule suggests that ESI contribution against employees has to be deposited within 42 days from the end of the month of the ESI contribution. The employer shall not be able to deposit the employee’s ESI contribution after 42 days, and shall have to bear the penalty of ₹10,000/-.
#4. Threshold limit for employee’s ESI contribution
Another new provision has now introduced a threshold limit for employee’s ESI contribution. Accordingly, the employees whose salary is ₹176/- per day or less need not to pay ESI contribution. Their share of ESI contribution shall be born by the Government. Nevertheless, the Employer shall still have to bear their share of ESI contribution.
#5. Special ESI registration Programme
The Government with a view to widening the ESI Social Security Coverage to more individuals has also begun an initiative for ESI registration. Within this Programme, special ESI registration will be conducted of the employers as well as employees from December 2016 to June 2017. Moreover, the coverage of the ESI scheme shall be extended to all the districts of India, but in a phased manner.
Along these lines, the government has planned to enhance the coverage of the ESI scheme to provide financial assistance to more & more employees of the organized sector in India.
In case you require any sort of assistance regarding the ESI registration feel free to contact us at 8881-069-069.
Now, you can download E-Startup Mobile App and Never miss the latest updates relating to your business.
