E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.70/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Labour Welfare Fund
Applicable-All the employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rs.2, 500/- (Rs. Two Thousand Five hundred) only per month or / and those who exercise either by the nature of the duties attached to the office or by reasons of the powers vested in them, functions mainly of a managerial nature are liable for contribution to the Labour Welfare Fund.
Amount of Contribution
The amount of contribution payable every six months in respect of every employee shall be 75 paise, only if the name of such employee stands on the register of an establishment on 30th June and 31st December, respectively; and in respect of an employer for each such employee shall be 2.25 paise payable every six months in form no A.
(c) Rs. 1.50 every six months per employee, as share of Govt. of Delhi as matching contribution, an amount equal to twice the employee's contribution. It will-be paid only on receipt of the statement in the prescribed format from the Welfare Commissioner of the Delhi Labour Welfare Board showing the total amount of employee's contribution and employer's contribution in respect of employees of each establishment In form No B
Every employer shall pay to the Board both the employer's contribution of 2.25 paise and the employee's contribution of 75 paise, before the 15th day of July and 15th day of January.
Board simple interest-
(a) in the case of a failure to pay any amount of unpaid accumulations or fines realised from the employees:-
(i) for the first three months, at one per cent, of the said amount for each completed months, after the last date by which he should have paid it according to the notice; and
(ii) thereafter, at one and a half per cent of that amount for each completed month, during the time he continues to make default in the payment of that amount;
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