ESI Registration

ESI RESGISTRATION:

Description: ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation (ESIC). The law under the Ministry of Labour and Employment, Government of India.

The ESI scheme was started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits under the ESI Act from the contributions made by both the employer and employee towards the ESI scheme.

ESIC Registration Eligibility:

Any non-seasonal factory or establishment having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC within 15 days from the date of its applicability.

Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.

Entities Covered under ESIC

• Shops
• Restaurants or hotels engaged only in sales.
• Cinemas
• Road motor transport establishments.
• Newspaper establishments (which is not covered under the Factory Act).
• Private medical institutions.
• Private educational institutions.

ESIC Registration:

Step-1: Login to ESIC Portal: Employer need to register himself on the ESIC portal with the employer login ID, then click on signup button and the employer need to fill all the Details and submit the form.

Step-2: Conformation mail: After signing up to the portal the employer will receive an conformation mail sent to registered mail ID. The email will contain the username and password details for registering as an employer and employee under the ESIC scheme.

Step-3: Employer Registration Form-1: Next, log in to the ESIC portal by clicking on the ‘Employer Login’ option on the home screen and entering the username and password received in the email. This will redirect to the page having the option of ‘New Employer Registration’.

Click on the ‘New Employer Registration’ option, Next, select the ‘Type of Unit’ from the drop-down list and click on the ‘Submit’ button.

On the Employer Registration Form-1 (ESI Registration Form), the employer needs to enter the details pertaining to the unit of the employer, employer details and click on submit.

Step-4: Payment for registration: The employer needs to fill the amount to be paid and select the payment mode.

The employer will need to pay the advance contribution for 6 months.

Step-5: Registration letter: On the successful payment of six months’ advance contribution, the system generated Registration Letter (C-11) is sent to the employer which will contain a 17-digit Registration Number by the ESIC department.

The Registration Letter (C-11) is a valid proof of registration of the employer.

DOCUMENTS REQUIED FOR ESIC REGISTRATION:

• Registration Certificate obtained either under the:
• Factories Act, or
• Shops and Establishment Act.
• Certificate of incorporation of the establishment, which are as follows:
• Certificate of Company Registration in case of a company.
• Partnership deed in case of a partnership firm.
• GST certificate of the establishment.
• Memorandum of Association and Articles of Association of the company.
• Address proof of the establishment. Any one of the following can be submitted as address proof:
• Utility bills (Electricity bill, gas connection bill or telephone bill of the establishment not exceeding three months)
• Rental agreement of the land on which the establishment is situated
• Property tax receipts of the land on which the establishment is situated
• A list of all the employees working in the establishment.
• PAN Card of the business establishment as well as all the employees working in the establishment.
• The compensation details of all the employees.
• A cancelled cheque of the bank account of the company.
• List of directors of the company.
• List of the shareholders of the company.
• A register containing the attendance of the employees.

Benefits of ESIC Registration:

• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness and which lasts for a maximum of 91 days in any year.
• Medical benefits to an employee and his family members.
• Maternity benefit to the women who are pregnant (paid leaves).
• If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee.
• Same as above in case of disability of the employee.
• Funeral expenses.
• Old age medical care expenses.

Compliances After ESIC Registration

• Maintaining the attendance register.
• Maintaining a complete register of wages for workers.
• Inspection book.
• Monthly return and challan within 15th of the succeeding month.
• Maintaining a register that records any accidents that happened on the premises.