Employee State Insurance (ESI) Registration

Employee State Insurance Corporation

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.

Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit.

Documents Required for ESI Registration

  • Name of the company
  • Date of setup of the company
  • Scan copy of company’s PAN (Proprietor’s, in case of proprietorship concern)
  • Scan copy of Licences available in name of the company. (like Service Tax, VAT etc)
  • Scan copy cheque of company’s bank A/c
  • Address of the company with address proof
  • List of Directors/Partners
  • Address proof of Proprietor/Director/Partner
  • Email address, Mobile Number of Proprietor/Director/Partner
  • Copy of First Sale Bill/Job Work Bill and first Purchase Bill
  • Monthly strength of employees from Date of setup
  • Current List of employees with details:
    • Name
    • Father’s Name
    • Date of Joining
    • Date of Birth
    • Mobile Number
    • Postal Address
    • Grade (Unskilled, Semi, Skilled)
    • Salary
    • Designation
    • ID proof (Aadhar and PAN)
    • Bank A/c number with IFS Code
  • Digital Signature of Proprietor/Director/Partner

ESI REGISTRATION HIGHLIGHTS

Employee’s State Insurance Corporation(ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides Employees with a comprehensive Social Security Scheme for protecting the employees during sickness, injury or disability.
Employee’s State Insurance Corporation(ESI) is a self-ESI provides employees registered the scheme with a host of medical and sickness benefits. Employees registered under the scheme can avail medical facilities and are also entitled for sick pay benefits.
ESI Registration for Employers having more than 10 employees. The Employer must contribute 4.75% of the Employees wages towards ESI. Once, registered the organization is allotted a 17 digit unique identification code.
ESI contributions must be made by the employer for all employees having a salary of less than Rs.15,000 per month. The employer must contribute 4.75% and employee must contribute 1.75% of the wages for ESI.
Organizations under ESI coverage must file annual return showing the changes if any during the preceding year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.
ESI Contributions must be paid by the employer in to a bank authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution is due.

FAQ LIMITED LIABILITY PARTNERSHIP

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

  • (i) Shops
  • (ii) Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
  • (iii) Cinemas including preview theatres;
  • (iv)Road Motor Transport Establishments;
  • (v) News paper establishments.(that is not covered as factory under Sec.2(12));
  • (vi)Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs).

In some states coverage is for 20 or more employees for wages. A few State Governments have not extended scheme to Medical & Educational Institutions.

Registration is the process, by which every factory/ establishment, to which the Act applies, is identified for the purpose of the ESI Scheme, and their individual records are set up for them.
Yes, it is the statutory responsibility of the employer under Section 2 –A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.

Anyone who claims to be an owner of a trademark can apply for trademark A In case the wages of an employee is increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on coverage of that employee is only after expiry of the Contribution period during the currency of which such increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/ announcement/ agreement.

Contribution shall be paid in respect of an employee in to a bank duly authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution falls due for any wage period (Reg. 29 & 31)