ESIC (Employees' State Insurance Corporation) compliance refers to adhering to the regulations and requirements set forth by the Employees' State Insurance Act, 1948, and the Employees' State Insurance Corporation (ESIC) for employers in India. ESIC compliance is mandatory for entities covered under the ESIC scheme, which provides social security and health insurance benefits to employees and their dependents. Here are the key ESIC compliances:
1. ESIC Registration:
- Employers with 10 or more employees (in some states, the threshold may vary) are required to register under the ESIC Act within 15 days from the date of applicability.
- The registration process involves submitting the ESIC registration form along with required documents to the local ESIC office.
- Upon successful registration, the employer is issued a 17-digit unique identification code known as the ESIC code number.
2. ESIC Contribution:
- Employers and employees contribute a certain percentage of wages towards the ESIC fund.
- The employer's contribution rate is higher than that of the employee, and both contributions are deducted from the employee's wages.
- Contributions must be deposited with the ESIC within the specified due dates.
3. ESIC Returns Filing:
- Employers are required to file monthly or semi-annual returns providing details of the wages paid and contributions made.
- Returns must be filed electronically through the ESIC portal within the prescribed time frame.
4. Maintenance of Records:
- Employers must maintain accurate records of wages, contributions, and other relevant details of employees covered under the ESIC scheme.
- Records should be updated regularly and made available for inspection by ESIC authorities when required.
5. Compliance with ESIC Rules and Regulations:
- Employers must comply with all ESIC rules and regulations issued by the ESIC from time to time.
- This includes adhering to contribution rates, filing returns on time, providing accurate information, and complying with other ESIC requirements.
6. Consequences of Non-Compliance:
- Failure to register under ESIC or comply with ESIC regulations may attract penalties and legal consequences under the ESIC Act.
Adhering to ESIC compliance ensures that employees and their dependents have access to healthcare benefits and financial protection in case of sickness, injury, or other contingencies. It also helps employers fulfill their obligations towards their employees' welfare and avoid penalties for non-compliance.