ESI Registration

Employees State Insurance

An autonomous body created by the law under the Ministry of Labour and Employment, Government of India is known as Employee State Insurance Corporation. This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer.

Applicability

Any Company / Organization having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.

Under this scheme, the employer needs to contribute an amount of 4.00% of the total monthly salary payable to the employee whereas the employer needs to contribute only 1.00% 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. 100/- per day.

Registering benefits under this scheme are varied. Some of them are:

1. Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year

2. Medical Benefits to an employee and his family members

3. Pregnant women get (paid leaves) as maternity benefits.

4. If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee

5. Same as above in case of disability of the employee

6. Funeral expenses

7. Old age care medical expenses

The documents required for the registration are –

1. A registration certificate obtained either under the:

a. Factories Act

b. Shops and Establishment Act

2. Deed copy in case of Parnership, LLP or COI (certificate of incorporation) in case of company form of business.

3. Memorandum of Association and Articles of Association of the Company

4. A list of all the employees working in the Establishment

5. Business Entity as well as all the Employees working under the entity’s PAN card.

6. The compensation details of all the employees

7. A cancelled cheque of the Bank Account of the Company

8. List of Directors of the Company

9. List of the Shareholders of the Company

10. Register containing the attendance of the employees

For Registration below process should be followed:

a. Form No – 1 (Employers Registration Form) is to be downloaded and filled.

b. Form should be submitted online on the site after filling the form and attaching the above mentioned document

Annual Compliance for ESIC

Every company/establishment registered under ESIC has to file half yearly returns and also annual returns. All the changes made to the employees during the year must be intimated to the department at the time of filing the ESIC annual return. After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:

1. Register of Attendance of the Employees

2. Form 6 – Register

3. Register of wages

4. Register of any accidents which have happened on the premises of the business

5. Monthly returns and challans