Sunday, 17 November 2019

New ESI Updates From 1st October 2019

ESIC registration




1. New employee registration within 10 days



  • Ideally, an employee must be added to the ESI subscription on the day that he joins. But this is not usually the case. In most cases, the new employees are added to ESI at the end of the month, when salary calculations are being done. But the new ESI update states that new employees have to be registered to ESI within 10 days of their joining the company. Thereafter, it will not be possible to add new employees to ESI. Since the ESI portal itself will not accept the new registration post 10 days.
esi changed in 2019


2. ESI contribution to be done within 42 days



  • Generally, the ESI contribution of one month has to be paid by the employer latest by the 15th of the succeeding month. Exceeding this due date results in the payment of penalty and interest on the employer. But the new ESI updates state that this monthly ESI payment can be done latest within 42 days. Once this date is passed, employers will not be able to make online ESI payments. An alternative payment method for this has also not been given yet.

new esic changes oct


3. Average daily wage revision as per Code on Wages



  • In the Code on Wages, it was stated that the National Minimum Wages would be Rs 176. Hence, the ESI department has stated that employees with a minimum wage of less than Rs 176 per day, do not have to give their ESI contribution. Their ESI contribution would be paid by the government on their behalf. The employer contribution would be paid by the employer as normal. So the notice on the ESI portal states that “Revised exemption of contribution for average daily wages of Rs 176 or less has been made effective from 1st September 2019”. Thus, the employee’s contribution for October challan would be considered zero. The earlier average daily wages was Rs 137.

esic for employee


4. ESI ID Card issue for employees



  • ESI would earlier issue an ESI Pehchan Card for member identification. This was later replaced with a printed form with the employee’s picture attached. This was then used by employees to get medical benefits at ESI hospitals and dispensaries. This format has again been replaced by an ID card. All employees will now have to visit their ESI branch office and get their ESI ID Card issued.

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