ESI Policy India

ESI Policy India

Company Name: [Company Name]
Effective Date: [Effective Date]
Policy Owner: [Policy Owner]
Approved By: [Approved By]
ESI Code Number: [ESI Code Number]

PURPOSE & SCOPE
- This policy outlines the Organization's obligations under the Employees' State Insurance Act, 1948, for providing social security and health insurance benefits to eligible employees. It applies to all employees drawing wages up to the ESI wage ceiling of Rs. 21,000 per month.
- The HR and Payroll departments shall ensure that all eligible employees are registered under the ESI scheme within 10 days of joining and that contributions are remitted by the 15th of the following month.

CONTRIBUTION RATES & WAGE DEFINITION
- The employee's contribution rate is 0.75% of gross wages, and the employer's contribution rate is 3.25% of gross wages, totalling 4.00%. Employees earning up to Rs. 176 per day are exempt from their share of contribution.
- ESI coverage operates in two contribution periods (April-September and October-March) with corresponding benefit periods (January-June and July-December). Once covered, an employee remains covered for the full benefit period even if wages exceed the ceiling during the contribution period.

BENEFITS UNDER THE ESI SCHEME
- Covered employees and their dependants are entitled to medical benefits at ESI hospitals and dispensaries. Additional benefits include sickness benefit (70% of wages for up to 91 days), maternity benefit (full wages for 26 weeks), and disablement benefit (90% of wages during temporary disablement).
- Dependants' benefit in the form of a monthly pension is payable to the dependants of an insured person who dies as a result of an employment injury or occupational disease. Funeral expenses up to Rs. 15,000 are also payable.

EMPLOYEE OBLIGATIONS & CLAIM PROCESS
- Employees shall obtain their ESI Pehchan Card and register their family members with the nearest ESI dispensary. To claim sickness or disablement benefits, employees must submit the prescribed forms and medical certificates to the local ESI office through the HR department.

COMPLIANCE & RECORD KEEPING
- The Organization shall maintain all ESI records, including the Attendance Register (Form 12), Accident Book (Form 11), and Inspection Book, as prescribed under the ESI (General) Regulations, 1950. Non-compliance shall attract penalties under Section 85 of the ESI Act.