Filing of contribution in respect of employees who are on ESI leave
Contents News/Article Date:9th January 2023
Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948
Applicable to which State: All the States and Establishments covered by the ESI Act
Type: ESIC Headquarters Circular No. 48.S – 11 .13.04.2018/INSPN/.SROK/Vol III issued by Deputy Director
Pertains to: Establishments and Insured Members
Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing, and Regulatory Compliances right from its inception in 2004 since then, it has brought in a lot of efficiencies and technological upgradations with experts on its role, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory, and Payroll compliances by providing customized solutions to all its elite clients.
Karma Management Global Consulting Solutions Pvt Ltd does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 744 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding postgraduate medical seats.
And in this instance: ESIC has informed that their audit party frequently observes that contribution is being filed by the employers in respect of the period during which the employees are on ESI leave.
The ESI makes it clear that to avoid recovery of wages paid to employees by ESI corporation to compensate for the loss of wages during the period they are on ESI leave, employers have to ensure that they are not filing contributions for those days.
Thus employers have to verify the attendance register carefully before filing contributions for any month. The number of days employees are paid ESI leave salary, should be excluded.
Subject: Filing of contribution in respect of employees who are on ESI leave
Attached is the notification