Employees’ State Insurance Act, 1948

Objective and Applicability of Employees’ State Insurance Act – The Employees’ State Insurance Act, 1948 primarily gives medical treatment and benefits to the insured persons under this Act and is applicable to any company engaging more than 10 employees drawing salary less than Rs.15,000/- pm.

Share of Contribution – Under this ESI Act, the employer pays – 4.75% and employee pays 1.75% of the wages/ salary.

Wages/ salary under the ESI Act – Wages/ Salary includes basic, Dearness Allowance, House Rent Allowance (HRA), overtime allowance, incentive, bonus, food allowance etc.

Payment of Contribution – Contributions have to be deposited by the employer by 21st day of the following month.

Procedure of Coverage Under the ESI Act – The Social Security Officer (SSO) of the ESI Corporation after inspecting a particular company and finding 10 or more employees drawing salary of less than Rs.15,000/- per month, covers the company under the Employees’ State Insurance Act, 1948. A notice under Form C-11 is issued to the company seeking explanation to the company as to why the company should not be covered under this Act. Once the aspect of coverage is decided, the ESI Corporation calculates the quantum of contribution and sends notice in Form C-18 asking for paying the contribution after giving an opportunity of hearing to the company. Upon hearing the company, order Under Section 45A of the ESI Act, 1948 is passed. This order can be either challenged Under Section 45AA of the ESI Act, 1948 before the Appellate Authority or can be directly challenged Under Section 75 of the ESI Act, 1948 before the Learned Judge, EI Court.

A labour law advocate in Kolkata specialised in ESI matter will be able to guide you more efficiently in this regard.

Voluntary Coverage of Employees – Voluntary coverage is not allowed unlike Provident Fund.