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ESI Benefits for Sales Promotion Employees

Details for ESIC Sub code
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0% found this document useful (0 votes)
95 views2 pages

ESI Benefits for Sales Promotion Employees

Details for ESIC Sub code
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EMPLOYEES STATE INSURANCE CORPORATION

PANCHDEEP BRA WAN. C.I.G ROAD.


NEW DELHI - 110 002.
Website - [Link] ®(011) 23234092

No. P-1112114114/06-Rev-II Dated: 311112011

The Secretary
Confederation of Indian Pharmaceutical Industry
128, Lok Vihar Appts,
Vikaspuri
New Delhi-18

Sub : Extension of ESI benefits to the Travelling Sales Promotion Employees


(SPE)
Sir,
Kindly refer to your letter no. zo- December, 2010 on the above mentioned
subject.
In this connection, replies to the querries raised by you is as under :-
I Compliance and coverage Sales Promotion Employees (SPEs) posted in
different places falls under different regions/SROs either in the State where H.O
or plant is situated or in other States where establishment has no branch
office/sales office or plant but operate sales promotion activities only. Then
,-_. -. ~~-

;a) How the contribution can be For the purpose of Contribution : As per
deposited, returns be filed and instruction No. P-12/1113112112008-Rev-1I
benefits be extended to SPEs. dated 31112/2008, the employer is supposed
to obtain the sub-code number by submitting
the address of the nearest/immediate
controlling office which will ensure the
compliance in r/o the employee(s) of such!
cases or through head office.
For the purpose of filing the returns:
Returns are required to be filed In the
respective allotted Branch Office or at
branch office of ESI allotted to Head Office
of the company.
For the purpose of benefits: Benefits can
be availed from the dispensary/IMP opted
____ ~ +b_y_the employee in the Declaration Forms. -I

I b) Under such circumstances, In present scenario: As mentioned above at,


II how compliances can be made (a) :
as aforesaid and SPEs will be After the introduction of smart card. The i
benefited by different facilities registration of company, registration ofl
provided under the ESI Act, InJemPloyees, deposit of contribution through i
the present Scenario or after challan etc shall be online. The benefits can:
introduction of smart card
__ .
be availed anywhere across India. :
.... -----.J
: 2:

11 Sub-Code To obtain the sub-code number in respect of those travelling Sales


Promotion Employees who are posted outside the State where the Head office of
the company is situated.
a) IH~Wcan sub-code be obtained As per instruction No. P-12/l1/31/21/200il
when Establishment has only Rev-II dated 31112/2008, for the purpose of,
I Principal/H.O at one state or issuing the sub-code number, the employer I

I may be in another State from of the main covered establishment is I


where all ESI required to furnish the detail address of the I

compliances/formalities could nearest/immediate controlling office. But:


be made for implemented where there IS no nearest/immediate!
areas, but no sales Controlling office is there, then as per the I
office/branch office in rest of instruction dated 115/2000, the residential
the states address of the employee posted in that area
shall be taken for the purpose of allotment of
sub-code number.
I
b) For such reasons, how Col.3: Name and Address of the
information can be furnished Nearest/immediate controlling
in the prescribed Application office/residential address shall be mentioned
form as the case may be
under Col. No.3, 4, 6 & 8 Le
address of the branch, Name Col.4: As designated by the Controlling
of the Branch Head, Local office
bank A/cNo., Date of opening
branch office etc for obtaining Col.6: Not required, if not available
sub-code, as stated above
Col.8: Date of opening shall be the date .f
I posting the employee in that area.
~----------------------~--------------------------------~

III Exemption from State Govt.: Exemption from the State Govt in r/o the
employees posted in the non-implemented area is not required. Only the records
in r/o these exempted employees shall be maintained by the employer for
inspection by ESIC. But when the already covered employee is posted in the
non-implemented area then the exemption from the State Govt is to be sought.

It is hoped that the above information shall suffice your requirement.

This issues with the approval of Insurance Commissioner.

Yours faithfully,

JlI{~
(SUSHIL SACHDEV A)
ASSTT. DIRECTOR (REV-I1)

Copy to : 1) All RDs/JD IIcs - for further necessary action.


,,/2) System Division for posting in Website

Common questions

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An employer must provide the address of the nearest or immediate controlling office where possible. In its absence, the residential address of the Sales Promotion Employee posted in the particular area is used. Additionally, detailed information such as the name and address of the branch, branch head, and other administrative details (as mentioned in the application form columns like No. 3, 4, 6 & 8) are required .

For SPEs in regions with limited ESI infrastructure, the document suggests obtaining a sub-code for tracking and accounting purposes, using the employees' residential addresses if no controlling office is available nearby. The smart card system further aids these employees by allowing them to access benefits and manage compliance online irrespective of geographical limitations .

Maintaining employee records is crucial for state compliance as it ensures that employers hold the required documentation for exemption validation. It facilitates inspections by ESIC and guarantees adherence to both coverage and contribution mandates. Without proper record-keeping, compliance could be compromised, leading to potential legal and financial repercussions .

Before the introduction of smart cards, benefits needed to be availed through specific dispensaries or the nearest controlling office. Post-introduction of smart cards, employees are enabled to deposit contributions and file returns online, with benefits being accessible anywhere across India. This provides greater flexibility and convenience for Sales Promotion Employees (SPEs).

To obtain a sub-code number for Sales Promotion Employees (SPEs) who are working outside the state where the Head Office of their company is located, the employer must provide the address of the nearest or immediate controlling office as per instruction No. P-12/1113112112008-Rev-II dated 31/12/2008. If there is no nearest/immediate controlling office available, then the residential address of the employee posted in that area is utilized for sub-code allocation .

When applying for a sub-code in areas without a controlling office, necessary documentation includes the residential address of the employee posted in that area. In the application form, this address is noted under columns such as the Name and Address of the nearest/immediate controlling office, branch head name, and local bank account information if applicable. Specific column instructions were outlined in the source document .

The introduction of the smart card system within the ESI framework significantly enhances the administrative efficiency and utility access for employees, allowing them to avail benefits and process ESI matters online regardless of their location. It supports seamless healthcare service accessibility, thus potentially increasing the attractiveness of ESI schemes to both employers and employees by reducing bureaucratic hurdles and geographical constraints .

State Government exemption under the ESI Act is required when an employee already covered by ESI is posted into a non-implemented area. Records of these employees must be maintained by the employer for ESIC inspections; otherwise, for non-implemented areas, exemption from the State Government is not required as long as records are kept .

The Insurance Commissioner plays a pivotal role in the guidance provided within the document by approving and overseeing the instructions for ESI compliance. This includes strategizing the efficient handling of sub-codes and ensuring clarity and uniformity in the procedural execution across different states and regions, indicating the importance of centralized oversight and policy implementation .

For Sales Promotion Employees (SPEs) working remotely, ESI compliance is maintained by obtaining a sub-code for each region or area where an employee is posted, using either the address of the nearest controlling office or the employee’s residential address if no office exists in that area. Contributions can be handled via sub-codes and the returns filed with either the nearest branch office or the company's Head Office .

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