What Is Employee State Insurance Corporation?
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. ESI Registration is done through TaxOSmart.
Choose ESI Registration because :
Provides complete medical care to employees , Includes employee's dependants also, Mandatory for units with 10 employees
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.
What Is Included In Our Employee State Insurance Registration Package?
ESI Consultation
Employer Registration
Employee Registration
Documentation
Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
Copy of bank statement
Advantages Of ESI Registration
Complete Medical Benefits
Provides comprehensive medical care for employees and their families.
Includes Dependants
The coverage extends to dependants, ensuring their healthcare needs are met.
Used at ESI Dispensaries/Hospitals
Employees can avail medical services at various ESI dispensaries and hospitals.
Reimbursement for Payments
Any medical payments made can be reimbursed under the ESI scheme.
Supports Disabled Employees
The scheme takes into account the specific needs of disabled employees.
Access to Medical Care
Employees have access to medical care in designated ESI dispensaries and hospitals.
Getting ESI Registration
Establishments or Factories must get themselves registered within 15 days of the Act becoming applicable to them by submitting an Employer's Registration Form (Form-01) to the relevant Regional Office.
Obtaining Code Number
A 17-digit identification number called the Code number will be provided which must be used in all Correspondence relating to the Scheme. Form 3 (Return on Declaration) must also be submitted along with Form 1.
For Employees
At the time of joining the insurable employment, employees are required to fill in a Declaration Form (Form1) and submit two copies of a family photo to the employer, which must be submitted to the relevant ESI Branch Office by his employer.
Insurance Number
The employee will then be allotted an insurance number for the purpose of his identification under the scheme.
Temporary Identity Card
The employees will also be issued a temporary identity card for availing medical benefit for him/herself and his/her family for a duration of three months.
Permanent Photo Identity Card
Thereafter, he will be provided with a permanent photo identity card. A person once registered need not register again when there is a change of employment. The same registration can be transferred from one employment to another.
Eligibility for ESIC Registration
If a company/organisation/business establishment employs 10 or more employees/workers, and in the case of Maharashtra and Chandigarh more than 20 employees, ESI registration is required. The company should register itself with the ESIC.
As for workers or employees, they are covered or entitled under ESI when they earn less than Rs.21,000 per month and Rs.25,000 in the case of a person with disability. The worker contributes 1.75% of their salary, while the employer contributes 4.75% towards the ESI scheme. Please note that these rates are revised from time to time. Workers whose daily average wage is up to Rs.50 are exempted from contributing to the ESI fund; however, employers will continue to contribute towards these workers.
Concerns Related to ESIC Registration
The ESI scheme is a self-financing scheme from the contributions. The ESI scheme funds are primarily built out of contributions from employers and employees monthly at a fixed percentage of wages paid. The State Governments also contribute 1/8th share of the cost of Medical Benefit.
- The following establishments employing 10 or more persons attract ESI coverage:
- Shops
- Hotels or restaurants not having any manufacturing activity, but only providing service.
- Cinemas
- Roadside Motor Transport Establishments
- Newspaper Establishments
- Private Educational Institutions and Medical Institutions
- In some states, the minimum number of employees required for coverage is 20 or more. A few State Governments have not extended the scheme to include Medical & Educational Institutions.
- Any sum deducted from wages under the ESI Act will be deemed to have been entrusted to the employer by the employee for the purpose of paying the contribution for which it was deducted. Non-payment or delayed payment of the Employee’s contribution after being deducted from the wages of the employee amounts to ‘Breach of Trust’ and is a criminal offense punishable under Section 406 of IPC.
ESI Registration
Ideal for Start-ups Going for Funding & Growing Business
