In India for the welfare of workers/ labors the government launched a scheme named Employee State Insurance, it is a socio-economic scheme that protects the worker and their dependents. The employees state insurance is also a health insurance plan for workers it offers medical & disablement benefits to worker/ labors.
The Employee state Insurance is governed by the Employee State Insurance Act (ESI) 1948, it is managed by the Employees state insurance corporation (ESIC) . The main function of ESIC is to manage the funds as per the rules in the ESI act 1948.
ESIC is regulated and managed by the Ministry Of Labour And Employment.
Who can apply for Employees State Insurance( ESI) scheme?
The Employees State Insurance (ESI) act itself says who are eligible for this scheme according to the act if an employee wants to seek benefits under this act he must fulfill the criteria mentioned below
- An individual who is employed in a non seasonal factory that has more than 10 employees.
- Earlier if an employee earns less than Rs.15000 per month he is eligible for the scheme, but with effect from 1st January 2017, the limit was raised to Rs 21000 so as per new rules if the employee wage is less than Rs 21000 then he is eligible for this scheme.
The Employees State Insurance (ESI) registration is mandatory if an entity has more than 10 employees or more low earning employees.
The Employees State Insurance Corporation (ESIC) registration can also be done through www.companyvakil.com
When Employees State Insurance (ESI) registration is mandatory?
When a company / any kind of entity employees more than 10 employees then it is mandatory for that entity to register with ESIC. The employee who earns monthly an income less than Rs 21000 must contribute 1.75% of salary to ESI and the employer must pay 4.75% for Employees State Insurance. The entity which comes under the ambit of ESI must register within 15 days from the time of the Employees State Insurance Act.
Employees State Insurance (ESI) Registration Process and required documents?
The registration of Employees State Insurance (ESI) involves a lot of steps
- A certificate of registration of the company/establishment or A registration certificate or license obtained under the shops and establishment act or the factories act.
- Certificate of registration of MOA /AOA in case of a private limited company, LLP
- A certificate of registration of all the entities and also for the commencement of production of factories
- A complete list of employees with their monthly compensation
- A complete list of partners, directors, shareholders of that entity
- The bank statement of that entity and the document of commencement of operations
- The address proof and the PAN card of that entity.
Procedure for Employees State Insurance (ESI) registration?
- Once the entity has all the documents mentioned above then it can apply for registration in form 1
- The employee can upload all the documents is the PDF format and submit them to the official website of ESIC
- The next step will be the Employees State Insurance Corporation(ESIC) verifies all the documents submitted
- After the verification process, the ESIC will provide a 17 digit registration number to that entity
- Once the entity got 17 digits unique number then they can file for ESI filings
- Employees registered under this will get an Employees State Insurance (ESI) card after submitting a form with their photograph and family details
- The registration is permanent and the 17 digit number is valid for the lifetime of the entity.
- Any new changes made in the entity regarding employees need to be initiated to the Employees State Insurance (ESI)
Documents required for Employees State Insurance (ESI) returns:
These are the documents required for Employees State Insurance returns
- Attendance register
- Register for form 6
- Inspection book
- Register for any kind of accidents on the premises
- Register of wages
- Monthly challans and return submitted to ESI
Benefits under Employees State Insurance Corporation (ESIC) registration?
These are the benefits under Employees State Insurance Corporation (ESIC) registration
- Sickness benefit
- Enhanced sickness benefit
- Extended sickness benefit
- Permanent Disablement benefit
- Temporary disablement benefit
- Dependent benefit
- Medical care to the widow in receipt of dependant benefit
- Maternity benefit
- Confinement expenses
- Funeral expenses
- Unemployment allowance under Rajiv Gandhi sharmik kalian yojna
Frequently Asked Questions
- What is an Employee State Insurance (ESI) scheme?
Employee State Insurance scheme, is a socio-economic scheme that protects the worker and their dependants. The employees state insurance is also a health insurance plan for workers it offers medical & disablement benefits to worker/ labours.
- Whether registration is mandatory for an entity?
Yes, the registration is mandatory for an entity which has more than 10 employees and the employer with in 15 days must apply for Employee State Insurance (ESI) registration.
- Who regulates and governs Employee State Insurance (ESI)?
According to The ESI act, 1948 ESIC regulates it under the Ministry of labour and employment.
- What is Employee State Insurance (ESI) code number?
Once the registration is successful the ESIC will provide a 17 digit number for that entity.
- What is the validity of the Employee State Insurance (ESI) code?
The Employee State Insurance (ESI) code is valid till the lifetime of that entity.
- What is the time limit of contribution?
The contribution shall be paid to the employee with in 15 days of the last date of the calendar month.
- What if there is a delay in payment of contribution by the employer?
An employer who delayed in payment of a contribution to the employee within the time limit provided then the employer is liable to pay interest at the rate of 12% per annum for each day of delay in payment of contribution.
- What are the benefits under the Employee State Insurance (ESI) scheme?
These are the benefits under this scheme sickness benefit, maternity benefit, disablement benefit etc are available
- When an employee is eligible for the Employee State Insurance (ESI) scheme?
If the employee draws a salary of less than Rs 20000 per month and the entity which employee work should have more than 10 employees.