Employee State Insurance (ESI) Registration

State Insurance Corporation (ESIC) comes under the Ministry of Labour & Employment. It is created with the intent to provide social security to the employee and his/her family from Medical Treatment & Health Insurance.

Every factory or business which has 10 or more employees at any point of time is required to get ESI registration for the organization. The timeline is 15 days from the date of hiring 10th employee in the organization. ESI applies to the employees having a salary of Rs. 21,000/- per month or less.

An employer is liable for the Penalty of Rs. 10,000/-, If he fails to get ESI registration, or indulges in misleading facts or documentation to avoid ESI, payment or not filing ESI Returns.

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Documents Required

  • PAN card of the company and of Proprietor/Partner/Director
  • Aadhar card of Proprietor/Partner/Director
  • Registration Certificate – GST registration, shop &establishment, COI
  • Partnership Deed of partnership firm, MOA, AOA, COI in case of Company
  • Address Proof
  • Cancelled cheque
  • Digital signature of Proprietor/Partner/Director

Plans For Employee state Insurance Registration 4999/-

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Advantages Of Employee State Insurance (ESI) Registration

Risk Coverage

ESI covers the risk due to illness or death forthe employees.

Death/Disability Benefit

In case of the death/disability of the employee at work, 90% of the salary is given to his dependents per month.

Old Age Medical Care

Retiring employees gets Rs. 120/- annually towards old age medical care benefits. The facility also available to the employees opting for VRS/ERS or retiring on account of permanent disability.

Social Security

ESI provides social security to employees. It supports employees and their families in terms of medical treatment & medical insurance.

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Funeral Expenses

The family of deceased employee gets Rs. 10,000/- towards funeral expenses.

Sickness Benefit

ESIC provides 70% of the salary to the insured employee on certified sickness for a maximum period of 91days.

Unemployment Benefit

ESIC provides 50% of salary for upto one year and medical care from ESI Hospital in case of the permanent inability due to non-employment, injury, or involuntary loss of employment.

Maternity Benefit

Female employees get paid leave at the time of pregnancy.

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Faq

What is ESI?

Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers.

Is it mandatory to the employer to get the ESI registration?

It is the statutory responsibility of the employer under Section 2-A of the Act read with Regulation 10-B, to register the Factory/Establishment under the ESI Scheme within 15 days from the date of its applicability to them.

What is the procedure for ESI registration?

A registration certificate obtained under ESI registration or Factories Certificate.

Who is required to get ESI Registration?

Any factory and company having more than 10 employees with some states it is 20 employees who have a maximum salary of Rs. 21,000/-.

What is the penalty for net registering under ESI?

The penalty for net registering under ESI is extend to six months or with fine which may extend to Two thousand rupees or with both.

How are the employees registered under the Scheme?

At the time of joining the insurable employment, an employee is required to fill in a Declaration Form (form1) and submit a family photo in duplicate to the employer, which is to be submitted to the ESI Branch Office by his employer.

What is the Salary limit on which ESI is applicable?

Employees whose monthly wages are Rs 21,000 or below And The wage limit for coverage under had been increased from Rs 15,000 per month to Rs 21,000.

What is ESI scheme?

The ESI scheme is a self-financing scheme. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages paid.

What is ESI Code Number?

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labor and Employment, Government of India. This scheme is started for Indian workers.

Is there any exemption for ESIC Coverage?

Yes, of course the exemption is permissible from operation of provisions of the Act subject to the condition that the employees in a covered factory or establishment are otherwise in receipt of benefits substantially similar or superior to those provided under the ESI Act.

What is the Contribution of ESI by the employer & Employee?

The employee's contribution rate is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period.

Who are the persons not to be counted for coverage of a factory?

The following persons are not to be counted

  • a) A proprietor or a partner whether drawing salary or not;
  • b) A contractor lending the services of his employee;
  • c) An apprentice engaged under the Apprentice Act, 1961;
  • d) Persons employed on contract for service, e.g., legal, technical, tax consultants;
  • e) Persons employed in branch/sales offices etc. away from the factory premises are not to be counted for the purpose of coverage of the factory. However, they are to be covered as employees under Section 2(9), if their wages do not exceed the ceiling limit prescribed.

Blogs

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