Employee State Insurance Registration is applicable to all the companies with having more than 10 employees drawing a maximum monthly salary of Rs. 15000/-. ESI Registration is to be done with Employee State Insurance Corporation who manages and offer various medical and monetary benefits to these employees. It is a 17- digit unique identification number allotted to each factory/establishment/ registered under this Act.
What is ESI Registration
Employee’s State Insurance (ESI) Scheme runs under an independent authority- Employee State Insurance Corporation which falls under the jurisdiction of the Ministry of Labour & Employment. This scheme is designed to provide the socio-economic protection to employees working in a company. Medical benefits, sickness benefit, maternity benefit and various other benefits to the employees and their family are covered under this scheme. The scheme also extends the financial assistance and medical care to the employees along with their family member insured under ESI Act. The employer and employee need to make contribution to the ESIC and hence, it can be called as self- financing scheme. The employer needs to register under ESI Scheme which can be taken online at www.esic.in (Government portal) once the employer falls under the obligation of taking this registration.
Check whether your entity is covered under ESIC:
(having more than 10 employees)
Non-Seasonal factories employing more than 10 employees
Shops
Hotels
Restaurants
Cinemas including preview theatres
Road-motor transport undertakings
Newspaper establishments
Establishments engaged in Insurance Business
Non-Banking Financial Companies
Port Trust
Airport Authorities
Warehousing establishments
Private Medical Institutions, Educational institutions and
On contract and casual employees of Municipal Corporation/Municipal Bodies employing 10* or more persons in certain States/UTs.
Benefit of ESIC
Medical Assistance
The scheme provides the medical assistance and treatment to the insured person covered under this said act along with his/ her families as and when required. The benefit is given in kind by the state government through Model Hospitals run by ESIC (except in Delhi) without linking to employee’s wages and contributions.
Impairment Benefits
Disabled employees can get are eligible for getting 90% of their monthly salaries as disablement benefits.
Dependent Assistances
During the employment tenure, in case of sudden death of the employee, the dependants of the deceased employee will receive 90% of his/her monthly salary.
Cremation Expenses
An additional amount of Rs.10,000 towards funeral expenses is provided to the family of the deceased employee.
Maternity Benefit
This benefit is designed for Pregnant women to whom the benefits are payable up to 26 weeks. The said period can be extended by 30 more days on medical instruction. To enjoy the benefit, employees are required to contribute their wages/ salaries for 70 days in the preceding 2 contribution periods.
Sickness Aids
With 70% of the monthly wage, absence from work due to illness can be taken for a maximum of 91 days per year
Confinement Expenses
Confinement expenses can be availed in case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme,
Addition
In addition to these there are few other benefits which may be termed as Need-Based Benefits/ Aid:
– Vocational Rehabilitation
– Physical Rehabilitation
– Old Age Medical Care
– Extended Sickness Benefits
– Enhanced Sickness Benefit
Documents required for ESI Registration
MOA and AOA of the company
LLP Agreement in case of an LLP
A cancelled cheque of the bank account of the company
Registration certificate as obtained under – Factories Act and Shops and Establishment Act
Mobile number and email id of Proprietor, Partner or the Company’s Directors as the case may be.
PAN card of the business establishment
Attendance register of the employees
Rent agreement, in case of rented property along with Utility Bill
Certificate of registration in case of a company and LLP and partnership deed for a Partnership firm
Address proof of the Proprietor, Partner or the Company’s Directors as the case may be
List of all employees working in the establishment along with employee details such as :
– Full Name,
– father’s name,
– Mobile Number,
– Date of Birth,
– Date of joining,
– Salary,
– Postal Address,
– Name of the Nominee,
– Grade,
– Identity proof such as PAN or Aadhar Card,
– Bank Account Number etc.
List of Directors of the company
Scanned copy of the Property Tax bill
List of Shareholders (as on date) in the company
Scanned copy of the licenses received by the company such as GST Certificate etc.
Digital signature of the Proprietor, Partner or Director as the case may be
Filing dates for ESI
Payment: 15th of every month
Returns: May 11th and November 11th
Filing dates for PF
Payment: 15th of every month
Returns: May 25th of every month
Why Choose Vallabh Consultancy
Answering some basic questions.
Making an Online Payment.
Mailing the required documents.
For ESI Registration
Day 1 - 2 Data Review
- Seeking Data from applicant and reviewing it
- Resolving Queries related to documents
Day 5 - 6 Final Application filing
- Making applications for registration under ESIC
Day 3 – 4 filling up Form and Client confirmation
- Filling the form for registration
- Gather the necessary documents
- Seeking confirmation from client for submission of the form
Day 6 onwards Notification from Government Awaited
- Government processing time
Explore ESI Registration
This scheme is specially designed by the government to provide full medical and financial assistance to the employee who is registered under the ESI Act. This scheme helps the employee to get compensation of the loss of his/her wage during his/her absence from work due to sickness, health issue, maternity, or employment inquiry. The benefits listed in the scheme extends to insured person’s family members also.
The scheme is primarily designed out of contribution made by employer & employee every month at a fixed percentage of the salary paid. Under this scheme, State Government also contributes 1/8th Share of the total cost of the Medical Assistance.
No, the scheme will remain enforced till he continues to be part of the same organization irrespective of the fact that he/ she is earning more salary than 21000/- per month.
To verify the details of the employee, the ESI Scheme issues a Unique Identification number to each employee or worker which is called as Insurance number and the same can be used for all operational purposes.
The universal rule to be qualified for ESI (Employees’ State Insurance) registration is to have 10 or more employees/workers. However, in few states and regions, ESI is applicable only if there are more than 20 employees.
Once the company/entity falls under the eligibility criteria, the registration needs to be taken within 15 days from the date it become eligible. This is the statutory responsibility of the shop/establishment or an entity.
There are few documents which an entity registered under ESIC Scheme needs to maintain regularly for filing ESI returns. They are as under:
1. Attendance register
2. Form 6
3. Register of wages
4. Register of any accidents on the premises
5. Inspection book
6. Monthly challans and returns submitted for ESI
a) Employer’s contribution: A sum equal to 4.75% of the wages payable to an employee, rounded off to the next higher rupee
b) Employee’s contribution: A sum equal to 1.75% of the wages payable to an employee, rounded to the next higher rupee;
In compliance with the Notification published in the Gazette of India dated 6.10.2016, the rates of employer’s and employee contribution for the initial twenty-four months from the date of implementation of the Act are subject to the following:-
(a) Employer’s contribution – A sum (rounded to the next higher rupee) equal to 3% of the wages payable to an employee; and
(b) Employee’s contribution – A sum (rounded to the next higher rupee) equal to 1% of the wages payable to an employee.
Every entity covered under this scheme needs to comply with mandatory filing such as regular deposit of monthly contribution to file half-yearly returns and report to ESIC authority for any changes or amendment made in business activity, address, ownership and management, etc.
No, the benefits under this scheme is non-transferable.
In respect of an employee the contribution shall be paid in a properly registered bank of the Company, within 21 days of the last day of the calendar month in which the contribution is due for any period of wage (Reg. 29 & 31).
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