Employees State Insurance
Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.
Employees’ State Insurance Corporation (“ESIC”) is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of ESI Scheme. The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the scheme against financial distress arising out of events of sickness, disablement or death due to employment injuries.
Having 20 or more employees in your firm or you wish to Voluntary Registration ? Apply for ESI registration with TAXAJ
It usually takes 3 to 5 working days.
- Drafting documents
- Filing of forms with Authorities
- Issue of ESI allotment letter
- Documented Follow-up
- Business hours -CA support
- Any business entity employing 20 or more employees
- Any business voluntarily wishes to comply with ESI & provide the benefits to employees
- Purchase of plan
- Upload documents on Vault
- Drafting of documents
- Submission of documents and application with Department
- Receipt of Registration letter
Name, Contact Number and Email Id of Stakeholder.
Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
Specimen Signatures of Stakeholder.
Latest Electricity Bill/Landline Bill of Registered Office.
NOC from owner of registered office. (If Owned)
Rent Agreement from Landlord. (If Rented/Leased)
PAN, TAN, COI of the Business Entity
Authority Letter in the name of a Authorised Person for ESI
Employees List along with their KYC for whom ESI is to be complied thereupon.
Cancelled Cheque in business name
Apply for ESI Registration now
Features of the scheme
Complete medical care and attention are provided by the scheme to the employee registered under the ESI Act, 1948 at the time of his incapacity, restoration of his health and working capacity. During absenteeism from work due to illness, maternity or factories accidents which result in loss of wages complete financial assistance is provided to the employees to compensate for the wage loss. The scheme provides medical care to family members also. As on 31 March 2017, 2.93 crore employees are covered under this scheme with the total number of beneficiaries summing up to 12.40 crores. Broadly, the benefits under this scheme are categorised under two categories:
1) Cash Benefits which includes sickness, maternity, disablement (temporary and permanent), funeral expenses, rehabilitation allowance, vocational rehabilitation and medical bonus, and
2) Non-Cash Benefits through medical care.
The scheme is self-financing and being contributory in nature. The funds under the ESI scheme are primarily built out of the contribution from the employees and employers payable monthly at a fixed percentage of wages paid. Currently, the employee contribution rate is 1.00% of the wages and that of employers is 4.00% of the wages paid. For newly implemented areas, the contribution rate is 1% and 3% respectively for employee and employer for the first 24 months. The employer makes the contribution form its own share in favor of those employees whose daily average wage is Rs 137 as these employees are exempted from own contribution The employer is required to pay his contribution and deduct employees’ contribution from wages and deposit the same with ESIC within 15 days from the last day of the calendar month in which the contribution fall due. The payment can either be done online or through designated and authorized public sector banks.
What is ESIC Registration?
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Any factory or business establishment having 10 or more than 10 employees, irrespective of salary, have to register with ESIC. ESI contributions must be made for all employees having a salary of less than Rs.21,000 per month. Employees with less than Rs. 21,000 monthly wages get health and sickness benefits through this statutory scheme. The state government also contribute 1/8th share cost of the medical benefit.
Who needs to register for ESI? (What establishments needs ESI registration?)
The following establishments having 10 or more employees attracts ESI coverage.
2. Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’
3. Cinemas including preview theater
4. Road Motor Transport Establishments
5. News paper establishments
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 hospitals, nursing homes, diagnostic centers, pathological labs)
Rate of Contribution towards ESIC:
Currently the employee’s contribution rate towards ESIC (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.
However, this rate keeps on changing from time to time.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration.
ESIC registration is a statutory responsibility of the employers of the factory. It is mandatory according to the rules and regulation of the ESI Act 1948.
- What is the procedure for registration of an employer?
An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.
Is it mandatory for the employer to register under ESI?
Yes, it is a mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.
What are the compliance requirements?
Every employer covered under this act has to comply with various compliances such as the deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership, and the management, maintenance of registers and records etc.
Whether the benefits grant to insured employees are transferable?
No, right to receive any benefits under this act is not transferable.
What is the ESI Scheme?
It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the ’employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
What is a Code number?
It is a 17 digit unique identification number allotted to each of the factory/establishment registered under the provisions of the Act. Such a number is generated through ESIC portal on submission of the pertinent information by the employer or generated on receipt of Survey report from the Social Security Officer.
Is there any provision for ‘exemption of a factory or establishment’ from ESI coverage?
Of course, an exemption is permissible from the operation of provisions of the Act subject to the condition that the employees in a factory or establishment covered are otherwise in receipt of benefits substantially similar or superior to those provided under the ESI Act. The appropriate Government may grant an exemption to such factory or establishment for a period of one year at a time prospectively in consultation with ESI Corporation. Application for renewal is to be made three months before the date of expiry of the period exemption.
What is the time limit for payment of contribution?
The contribution shall be paid in respect of an employee into 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).
What are the consequences of the non-late payment of employees’ contribution deducted but not paid?
Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted (Sec. 40(4). Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘ Breach of trust’ and is punishable under IPC 406.
Which Cities do you provide your services?
Team Taxaj provides ESIC Registration all across India. You can obtain ESIC registration in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur or any other cities easily with us.