ESI Registration and Filling

Obtaining ESI registration could be an obligatory responsibility of the employers of an institution. ESI Registration is provided by an autonomous body named ESIC that is ruled by the provisions of the ESI Act 1948.

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Who needs to obtain ESI Registration in India?

Under section 1 (5) of the ESI Act, 1948, the following entities need to obtain ESIC Registration;

Cinemas

Shops

Restaurants or Hotels only engaged in sales.

All Road Motor Transport Establishments

Every newspaper establishments (which are not covered under the factory act)

Private Educational Institutions

What is ESI Registration?

The Employee State Insurance Act of 1948[1] is an act that provides benefits to employees in case of sickness, maternity and employment injury. After that, to provide those benefits to the employees by the employer, there was a need to set up a provision to provide certification to companies providing these benefits to its employees. ESI Registration is the certification that needs to be obtained by such companies employing over ten people (20 in some states) taking wages of Rs. 15, 000.

ESI Registration is compulsory for companies having 10 or more employees.

Established under the ESI Act, 1948, ESIC (Employees’ State Insurance Corporation) provides benefits to employees in the event of their sickness, death, disablement, injury, etc. The finance of this scheme comes from contributions from both employees and employers. Any employee who earns a monthly income of less than Rs. 21000 per month is covered under this scheme. Apart from employees, the family members of employees are also provided benefits under this Act. Any establishment that employs 10 or more employees is mandated by law to register under this Act. The contribution of employers in this scheme is 4.75% and that of employees is 1.75%, thus making a total of 6.5%.

eStartIndia is the best online legal services platform in ESI Registration in India, offering a variety of registration services like GST registration, FSSAI registration, Professional Tax registration, TAN registration, MSME registration, PF registration, IEC Code, Digital Signature, Trade License to name a few.

eStartIndia will help you to ESI Registration from the comfort of your home, offering you services that are very technical and as per individual needs.

Get a free consultation for ESI Registration with Our Top Rated Experts with simple Registration.

Benefit

Benefits of ESI Registration

ESI Registration ensures that employees enjoy the following advantages under the Employees’ State

Medical Aid

From the very first day of employment, registered ESI members and their families are entitled to enjoy the benefits of complete medical care and insurance.

Maternity Aid

Pregnant women are entitled to maternity benefits that are payable up to twenty six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.

Disablement Benefits

Disabled employees can get 90% of their monthly salaries as disablement benefits.

Sickness Benefits

Absence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.

Dependent Benefits

In the unfortunate event of the demise of an employee during the employment, the dependents of the deceased will receive 90% of his/her monthly salary.

Funeral Expenses

The family of the deceased employee is entitled to an additional amount of Rs.10, 000 towards funeral expenses.

Confinement Expenses

In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed. In addition, some of the need-based benefits:

Vocational Rehabilitation

Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.

Physical Rehabilitation

Available to employees in the case of physical disablement due to an employment injury or occupational hazards.

Old Age Medical Care

An annual payment of Rs.120 ensures medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS. Insured ESI members retiring on account of permanent disabilities are also entitled to the same benefits.

Extended Sickness Benefits

ESI members suffering from chronic diseases can avail the extended sickness benefit for up to 2 years, provided the sick leave of 91 days are expired. Among other conditions, the criteria for eligibility for this benefit include that the concerned ESI member should have been working for at least 2 years at the onset of the sickness and its subsequent diagnosis.

Enhanced Sickness Benefit

This benefit was introduced in 1976 as a measure to encourage ESI employees to undergo vasectomy or tubectomy for family welfare. Registered ESI members willing to undergo the sterilisation procedures are eligible for enhanced sickness benefit of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital. Extension of this benefit can also be availed in case of post-operative complications

Eligibility

Eligibility for ESI Registration in India

The general rule to be eligible for ESI (Employees' State Insurance) 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.

Document

Documents required for online ESI Registration

ESI registration requires the following documents to be submitted by the employer along with the application:

To register for ESI (Employees' State Insurance) 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 of 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.

Advantage

Advantages of ESI Registration

Medical Aid

ESI registered persons are awarded full medical care as also their family member’s right from the day of entering employment which provides insurance.

Maternity Benefit

Maternity Benefit for confinement/pregnancy is payable for Twenty Six (26) weeks, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding Two Contribution Periods.

Disablement Help

In case of any disablement of an employee 90% of the monthly salary is paid as a disablement benefit.

Sickness Benefits

In case of any sickness of an employee 70% of the monthly salary is paid as a sickness benefit subject to a maximum capping of 91 days in a year.

Death Benefits

In case of death of an employee 90% of the monthly salary is paid as a death benefit to employees’ dependents

Funeral Expenses

An amount of Rs.10, 000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.

Confinement Expenses

An Insured Women or I.P.in respect of his wife in case confinement occurs at a place where necessary medical facilities under the ESI Scheme are not available.

Vocational Rehabilitation

To permanently disabled Insured Person for undergoing VR Training at VRS.

Physical Rehabilitation

In the case of physical disablement due to employment injury.

Old Age Medical Care

For Insured Person retiring on attaining the age of superannuation or under VRS/ERS and person having to leave service due to permanent disability insured person & spouse on payment of Rs. 120/- per annum.

Documents required for ESI Registration for Company's

Self-attested copy of PAN card (mandatory).

Address Proof.

Self-attested copy of Bank statement.

Copy of Board Resolution.

A copy of the license of a certificate of registration under Shops and Establishments/or Factories Act.

Details of employees, details of the employment position, details of salary.

Date of commencement of business or production evidence.

Copy of COI and MoA and AoA/Partnership Deed/Trust Deed depending on the business entity.

List of Shareholders.

List of Directors.

Canceled copy of Cheque.

Address Proof of Partners/Directors/Proprietor:

PAN and

Passport; or

Aadhar card; or

Driving license

For Employer Address Proof:

Self-attested copy of Telephone/Mobile or Electricity bill; or

Registered Title deeds or

Rent Agreement

ESI Registration Process

Step 1

Document Preparation – eStartIndia will prepare your application of ESI Registration along with the collection of required documents and employee data.

Step 2

Application submission – eStartIndia will submit your ESI Registration application for processing along with the necessary documents.

Step 3

Application processing and approval – eStartIndia will be constant touch with the ESI Registration office while the application is in a process in case any further documents are required.

Step 4

ESI Registration Code – eStartIndia will receive 17 digit code which is unique for every organization.

Step 5

Congratulations! Your work is done.

ESI Return Filing

After obtaining ESIC Registration, you have to file ESI Returns twice a year.
Furthermore, you need to attach the following documents to file ESI Return;

Employees Attendance Register

Form 6 – Register

Monthly returns and challans

Offences and Penalties

The ESI Act prohibits the following activities by the employer and considers them as offences if committed at any point of time which is liable for punishment under this act;

If the employer fails to pay any contribution which under this act

In case they deduct or attempts to take away a part or whole portion from the wages of an employee

If the employer tries to reduce the wage, privilege or any other benefit of the employee which contradicts with Section 72 of this act

Also, performing any tasks like dismission, discharging, reducing or punishing an employee in contradiction with section 73 of this act

In case they fail or refuses to submit any return prescribed under relevant regulations

Furthermore, if the employer tries to obstruct the inspector or another official midst of his/ her duty

In case the employer is found non complying with any of the provisions of this act

Furthermore, in the case of above-mentioned offences the following penalties are imposed on the employer;

Imprisonment not less than one year in case of failing to pay the employee’s contribution which was deducted by the entity at the time of employment of such employees

Or a jail term not less than six months in case of any other offence along with a fine of Rs. 5000

Also, if the court seems fit, they can extend the term of imprisonment up to one year or a fine up to Rs. 4000 or both.

Below mentioned is the stepwise procedure of ESI Registration

After collecting all the required documents, the company can apply for ESI registration by presenting the Employer’s Registration Form (Form-1).

A PDF format of the ESI Registration form is available online. Enter the form with correct details and submit it on the official website to get registration under ESIC.

After all verification process, a 17-digit unique registration number will be provided to the business entity.

Once you receive the 17-digit unique registration number, immediately ESI filings can be done.

Employees registered under the ESI scheme will receive an ESI card after submitting the required form along with photographs and complete information of the family members.

The ESI registration process is one-time process or it is permanent, and the number is valid for the lifetime of the entity, if anything you want to change, such as new employee addition or so on, you need to be approach the ESI.

ESI Return Filing Process

Companies running under ESIC’s registration have to file their returns every year. During this process, they have to submit all the changes done or happened in the preceding year. The entity also has to present the details of ESI contribution paid and it has to be done in every six months. The last date of submission of ESI return is 11th of November for the period of April to September and 11th of May from October to March.

Here is the list of needed Documents for filing ESI returns.

Attendance register

Monthly challans and returns submitted for ESI

Inspection book

ESI Returns can be filed two times every year after the registration. An employer can fill the ESI return through the official website of ESIC. Every employer has their own 17 digits permanent code number which is issued by ESIC at the time of registration. To enter into the ESIC official website, this unique number is used as a user id and password as issued to you.

Once entering the website, choose the monthly contribution section and surf to view RC and click it.

Here you can find the complete details of the contribution paid by the employer and the details of the wages of the employees.

Verify the complete details carefully. If there is any short payment of contribution for any employees, then generate supplementary challans using the option ‘modify challan option’ under the section of monthly contribution.

You can create miscellaneous challan if there are any payments to be made on omitted wages which is not related to identify workers.

Then click Self Certification which is under the monthly contribution section and check mark the declaration and click the submit button. You have to upload chartered Accountant certificate before submitting, in case you have 40 or more employees.

For more information on ESI registration and filling, consult Vyapar formations.
Our team will guide you through the complete process of ESI registration and filling required for your company.