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All About ESI

ESI is an autonomous organization under the Ministry of Labour and Employment, Government of India. Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers.

ESI Scheme

ESI (Employee State Insurance) operates following the ESI Act of 1948. It is a government scheme designed to provide social security benefits to workers. The administration of this scheme falls under the purview of the Employee State Insurance Corporation (ESIC). Employers must formally register their establishments with ESIC and furnish worker details for inclusion in the program.

Complying with the intricate regulations stipulated by the government can pose a significant challenge for employers. IndiaFilings' ESI experts are available to assist you with these matters.

Who requires ESIC Registration?

ESI Registration is mandatory for every factory and specified establishments who have 10 or more permanent employees and wages of such employees are less than Rs. 21,000/- per month.

Definition of Establishment

According to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI registration coverage

1. Shop

2. Hotels or restaurants not having any manufacturing activity, but only engaged in 'sales';

3. Cinemas including preview theaters;

4. Road Motor Transport Establishments;

5. Newspaper establishments. (that is not covered as a factory under Sec.2(12));

6. Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership of hospitals, nursing homes, diagnostic centers, pathological labs).

Penalty in case of failure to get ESI registration & ESI returns

In case of any non-compliance by an employer, such as failure to get esic employer registration online or not fulfilling esi return filing procedure, he shall be liable for a fine of INR 10,000/-.

Benefits of ESIC Registration

ESI Registration provides monetary and medical benefits to employees in case of sickness, maternity and employment injury and to make provisions for related matters.

Some of the benefits of ESI Registration are :

1. Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year

2. Medical Benefits to an employee and his family members

3. Maternity Benefit to the women who are pregnant (paid leaves)

4. If the death of the employee happens while on work 90% of the salary is given to his dependents every month after the death of the employee

5. Same as above in case of disability of the employee

6. Funeral expenses

7. Old age care medical expenses

ESI Contribution of Employer and Employees

Every month, employers are required to contribute 3.25 % and employee contributes 0.75% of the wages payable. Total ESI contribution i.e. 4% deposited to the ESIC fund.

Total ESI contribution is 4%

ESI contribution rates for employee and employers are as below :

Employee

Employers

3.25%

0.75%

ESI Registration Process

1. Upload the Necessary Documents on our web portal.

2. Choose the appropriate Package and Pay online with various payments modes available.

3. On placing the order, your application will be assigned to one of our dedicated professionals.

4. Our professional will fill up the required ESI registration form for the employee.

5. Upon verification, the ESI registration form will be submitted.

6. After ESI account is created, the ESI registration certificate will be sent to the applicant.

Documents required for ESI registration

1. Registration Certificate GST Certificate, Shopex, COI

2. Address proof Electricity Bill, Rent agreement, Telephone Bill, Water bill.

3. PAN card Of business entity and all partners/directors.

4. Cancelled cheque Cancelled cheque is required for authentication of bank details.

5. Digital Signature of anyone Director. (Pendrive) DSC will be affixed on the application form.

6. Additional Document In case of Company - COI/MOA, In case of partnership firm - Partnership deed.