TAXAJ

Employees State Insurance

Employee State Insurance Corporation 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 wide variety of medical, monetary and other benefits from the employer. A company that has more than ten employees has to mandatorily register itself with the ESIC. In some states, the minimum mandatory number of employees is 20, with a maximum salary of Rs. 15000/- 

Employees’ State Insurance Corporation (“ESIC”) is a statutory corporate body set up under the ESI Act 1948, which is responsible for administering the ESI Scheme. The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the plan against financial distress arising out of events of sickness, disablement or death due to employee injuries.
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About This Plan

Having 20 or more employees in your firm or you wish to Voluntary Registration ? Apply for ESI registration with TAXAJ

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It usually takes 3 to 5 working days.

Buy Now
Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Drafting documents
  • Filing of forms with Authorities
  • Issue of ESI allotment letter
  • Documented Follow-up
  • Business hours -CA support
Who Should Buy
  • Any business entity employing 20 or more employees
  • Any business voluntarily wishes to comply with ESI & provide the benefits to employees
How It's Done

    • Purchase of plan
    • Upload documents on Vault
    • Drafting of documents
    • Submission of documents and application with Department
    • Receipt of Registration letter
Documents Required

  1. Name, Contact Number and Email Id of Stakeholder.

  2. Self Attested PAN, Aadhar & Passport size photo of Stakeholder.

  3. Specimen Signatures of Stakeholder.

  4. Latest Electricity Bill/Landline Bill of Registered Office.

  5. NOC from owner of registered office. (If Owned)

  6. Rent Agreement from Landlord. (If Rented/Leased)

  7. PAN, TAN, COI of the Business Entity

  8. Authority Letter in the name of a Authorised Person for ESI

  9. Employees List along with their KYC for whom ESI is to be complied thereupon.

  10. Cancelled Cheque in business name 

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Features of the scheme

The scheme provides complete medical care and attention 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 factory accidents resulting 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 of 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. The funds in ESIC are built out of the contribution from both the employees and employers. Both make a fixed monthly contribution of wages. Currently, the percentage of 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 employees and employers for the first 24 months. The employer contributes its share in favour of those employees whose daily average wage is Rs 137 as they are exempted from their contribution. The employer must pay his contribution within 15 days from the last day of the calendar month in which the contribution falls due. The employer must also deduct employees’ contributions from wages and deposit the same with ESIC.  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 that provides medical, sickness, maternity, and other benefits such as funeral expenses, free supply of physical aids, etc., to the employees and their families.

Any factory or business establishment having ten or more than ten 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 of the share cost of medical help.

Q. Who needs to register for ESI? (What establishments needs ESI registration?)

 

The following establishments having 10 or more employees attracts ESI coverage.

1. Shops

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) 

Q. 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. 

Q. Contribution Period and Benefit Period 

 

There are dual contribution periods of six months 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 regulations of the ESI Act 1948.

FAQ

Q. 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.

Q. What are the compliance requirements?
All the employers covered under this act must comply with various compliances; one is the deposit of monthly contribution. Other compliance that needs to be taken care of are filing half-yearly returns and reporting to ESIC authorities about any changes. The changes may be related to business activity, address, ownership, management, maintenance of registers and records, etc.
Q. What is a Code number?
It is a 17 digit unique identification number allotted to each of the factories/establishments registered under the provisions of the Act. Such a number is generated through the ESIC portal on submission of the pertinent information by the employer.
Q. Is there any provision for ‘exemption of a factory or establishment’ from ESI coverage?
An exemption is permissible from the operation of the Act's provisions. This exemption is subject to the condition that employees in a factory or establishment covered benefits in other ways like WCP. The Government may grant an exemption to such factory or establishment for one year prospectively in consultation with ESI Corporation. The renewal application is to be made three months before the date of expiry of the period exemption.
Q. 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 city easily with us
Q. Is it mandatory for the employer to register under ESI?
Yes, it is a mandatory requirement for every employer under this act to register their Factory/ Establishment.
Q. Whether the benefits grant to insured employees are transferable?
No, right to receive any benefits under this act is not transferable.
Q. What is the ESI Scheme?
ESIC is the Social Security against sickness, maternity, disablement and death due to employment injury. It is a comprehensive Scheme designed to accomplish the task of socially protecting the ’employees’. ESIC schemes also help in providing medical care to the insured employees their families.
Q. What is the time limit for payment of contribution?
ESIC contribution is paid for an employee into a bank duly authorized by the Corporation within 21 days of the last day of the calendar month. The contribution falls due for any wage period (Reg. 29 & 31).
Q. 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.