Understanding ESIC Applicability for Contractual Labor

• Contractual labor is covered under ESIC if employed through a contractor in a covered establishment.
  
• The principal employer is ultimately responsible for ensuring compliance.
  
• Contributions are required if the labor earns up to the prescribed wage ceiling.
  
• Both contractor and principal employer may be held liable for dues.
  
• ESIC coverage ensures access to medical and statutory benefits for contract workers.
  

Registration and Code Management

• Contractors must obtain a separate ESIC code if employing eligible workers.
  
• Principal employers may include contractual employees under their own ESIC code if contractors are unregistered.
  
• Sub-codes may be issued for different contractor-managed branches.
  
• The contractor must submit employee details and wage data accurately.
  
• The principal employer should maintain records of the contractor’s code and filings.
  

Wage and Contribution Calculation

• Calculate the gross wages of each contractual worker as per the ESIC wage definition.
  
• Deduct 0.75% from the employee and add 3.25% as employer share.
  
• Ensure that no excluded components are subtracted from gross wages.
  
• Maintain monthly wage sheets and deduction registers for all contractual staff.
  
• Recalculate contributions if there are changes in wage or working days.
  

Monthly Filing and Remittance Process

• Generate a challan using the contractor’s or principal employer’s ESIC portal login.
  
• Enter the names, insurance numbers, and wage details of all contractual labor.
  
• Pay the total contribution by the 15th of the following month.
  
• Obtain and retain the TRRN and confirmation of payment.
  
• Submit the contribution return with correct period and employee mapping.
  

Documentation and Compliance Verification

• Keep a copy of the contract agreement specifying ESIC responsibility.
  
• Maintain attendance, wage, and deduction records for each worker.
  
• Collect and update E-Pehchan cards for all enrolled contractual staff.
  
• Submit records for verification during ESIC inspections or audits.
  

Coordinate with contractors to ensure no duplication or omission in filings.