ESI Registration

Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary and other advantages to workers. ESI is managed by an autonomous authority - Employee State Insurance Corporation – which lies under the jurisdiction of Ministry of Labour and Employment.

By law, any company that has more than 10 employees mandatorily need to have ESI. In some states, the number of employees is 20.

At Vakilsearch, we assist you with online ESI registration. Our services comprise of:

Free first-time consultation
Data validation of all the submitted documents
Assign a dedicated affiliate to process the application
Get the PF and unique ESI Number within the shortest time possible

Benefits of ESI Registration

Under the ESI Act, employees are granted the following advantages:

MEDICAL

Every person registered and their families get complete medical care.

SICKNESS

For certified sicknesses, 70% of the salary is payable for a maximum of 81 days in one year.
In the case of long-term diseases, 80% of the salary is payable for 2 years.

MATERNITY

3 months of maternity benefit is granted with an extension of 30 days more in case medically advised.

DISABLEMENT

90% of the wage is payable if the worker is permanently disabled.
If there is a death on the premise, then the dependent is paid 90% of the salary every month.

ESI not only grants access to good medical care at all ESI hospitals but also medical reimbursement. Furthermore, under the Rajiv Gandhi Sharmik Yojana a worker who has been insured for 3 or more years is applicable for unemployment allowance.

Steps covered under ESIC Registration Process

Form Filling: The ESI registration form is filled by you completely and the necessary documents are submitted.

Verification: Every detail you provide is cross-checked to ensure there are no errors or omissions made. This may take a maximum of 12 days.

Submission: The ESI application along with other legal paperwork is submitted by us which requires 2 working days.

Your part of the ESI registration is completed at this point. The government reviews the application and processes your registration. Once granted, Vakilsearch sends you:

The 17-digit identification code number
Employee insurance number
Temporary identity card

Eligibility/entities covered under ESIC Registration in India

Under the ESI Act of 1948, many establishments are eligible for registration as long as they have the required number of employees in that state. The entities covered are:

Shops
Cinemas
Movie theatres
Medical institutions
Hotels or restaurants
Newspaper establishments
Private Educational institutions
Roadside motor transport establishments

For hotels and restaurants, it is mandatory to only offer the service and not have any manufacturing functions. In some states, medical and educational institutes are not included. For newspaper establishments, there is no coverage under the Factory Act.

Eligibility for ESI Registration in India

The general rule to be eligible for ESI registration is to have 10 or more workers. But in some regions, ESI is applicable only if there are more than 20 employees.

Other eligibility criteria that need to be fulfilled are:

Any employee whose gross salary is up to Rs. 21,000 per month can avail this with the help of the employer.
Establishment Registered with EPFO.
The contribution to ESI is 6.5% of the gross salary. It is divided as:
- 4.75% by the employer
- 1.75% by the employee

For industrial units, where there are chances of occurrence of injury or health issues at the business premise, all employees with salary less than Rs.21,000 compulsorily need to have ESI.

Documents required for online ESI Registration

To register for ESI, the employer has to submit the following documents along with the application:

The registration certificate or license issued by:
- Shops and establishment Acts
- Factories Act
Address proof
- Rent receipt of the occupied premises, mentioning its capacity
Copy of PAN card
Copy of bank statement
Photocopy of the last building tax/property tax receipt
Memorandum and Articles of Association or Partnership Deed or Trust Deed - dependent on the applying entity
Photocopy of registration
- Certificate of commencement of production
- Registration No. of CST/ST/GST

For ESI filings, monthly pay sheet is required for computing contribution amount for each employee.

DUE DATES FOR ESI:

Payment: 15th of every month
Returns: May 11th and November 11th

DUE DATES FOR PF:

Payment: 15th of every month
Returns: May 25th of every month

These were the documents filed by the company. The employee has to submit two copies of the family photo.

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ESI Registration