ESI Registration

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OVERVIEW

ESI Registration

Employees are the most important resources in any organization and to take the utmost care is the responsibility of the employer. The government has introduced various schemes for the benefit of the employees, one such scheme is Employee State Insurance i.e., ESI.

ESI provides various types of medical benefits to the employees during and after employment. In ESI, the employer contributes 3.25% of the Salary, and the employee contributes 0.75% of the Salary. This contribution is paid to the government through the monthly challans and the employee becomes eligible for the benefits under the ESI.

BENEFITS

Benefits of ESI Registration :

1. Employee and his family members get the medical benefits through ESI hospitals or ESI medical practitioners.
2. Maternity benefits in the form of paid leaves can be availed.
3. If any sickness lasts for 91 days, the employee gets 70% of the salary.
4. If an employee dies or becomes disabled during work then the employee or his dependents get 90% of the salary.
5. Employee’s dependents are paid funeral expenses.
6. Employee is also paid old-age medical expenses.
REQUIRED DOCUMENTS

Documents required ESI Registration

Following documents are required for ESI Registration :
  • PAN Card of the organization and employees.
  • Registration certificate of Factories Act or Shop and Establishment Act If any.
  • Incorporation certificate.
  • Memorandum of Association, Article of Association.
  • List of employees and their basic details, family details, and bank account details.
  • Canceled Cheque.
  • Salary of all the employees.
  • List of directors/partners.
process

Process of ESI Registration in India

The process of registration is as follows:
  • The first step is to register for login id and password at the ESIC’s website by clicking the signup button for employers.
  • At the next step, the employer will receive an email and message on a mobile number confirming the details and sending the login id and password for ESI login.
  • The next step is to log in using the login id and password received on the email id.
  • By clicking the employer registration, the applicant needs to select the type of units (Factory or Establishment).
  • After this Employer Registration Form-1 needs to be filled which contains the details like the organization’s details like PAN, date of commencement of the organization, the business of the organization, etc.
  • Further, Form-1 requires the details of the principal contact of employers, all the basic details of employees, etc.
  • After submitting the form, the employer needs to pay an advance contribution of six months online.
  • After the payment is made, the registration letter in form C-11 is generated which is the registration certificate.

Time Required

The time required for the submission of the documents is 5-10 days.

FREQUENTLY ASKED QUESTIONS

Explore ESI Registration

1. When ESI Registration is required?

The employer is required to register under ESI Act when organisation has more than 10 employees and the salary of employees does not exceed Rs. 21,000. It means that ESI will be contributed for only for the employees having salary up to Rs. 21,000.

2. What is the validity period of ESI Registration and how much digits do ESI Registration number contain?

The Registration is valid throughout the life of the organization.ESICode is 17-digit code.

3. What are the contribution rates for ESI?

For the following are the contribution rates: • Employer contributes 3.25% of the salary.
• Employee contributes 0.75% of the salary.
Earlier the contribution rates were as follows: • Employer contributed 4.75% of the salary.
• Employee contributed1.75% of the salary.

4. What is the exemption available to employee to contribute the ESI contribution?

The employee whose salary is less than Rs. 176 per day is exempted for his contribution.

5. Which entities are covered under ESI Act?

The following entities are covered under ESI Act: • Shops.
• Cinemas.
• Private educational institutions.
• Restaurants.
• Newspaper establishments, etc.

6. What are the compliances after ESI registration?

The employer needs to do the following compliances: • ESI monthly returns and challans.
• Register of attendance to be maintained.
• Register of Accident.
• Register of Wages.

7. Whether registration under ESI is required for business units on an organisation?

The ESI registration is required for each and every unit of an organisation having more than 10 employees and having salary up to Rs. 21,000.

8. What are the cases where ESI is not applicable?

ESI registration is not applicable where all the employees in the organisation are withdrawing salary more than 21,000.

9. Within what period employer needs to apply for ESI Registration?

The employer must apply for registration of ESI within 15 days of its applicability to the organisation.

10. What is the due date for depositing the ESI monthly challan?

The ESI is deposited monthly. The due date for depositing the ESI challan is 15 days from the end of the month to which the contribution relates. Late depositing of ESI challans attract interest rate of 12% p.a. each day of default and disallowance of ESI contribution while computing income tax.