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What is ESI Registration, and How to Apply Through LegalRaasta?

If you are an employee, then you government provides a scheme called the Employees’ State Insurance (ESI) registration. This is a mandatory process for eligible employers and employees for providing social security advantages such as health insurance, maternity benefits, and disability protection. This plan is offered in order to give employees full rights of employees by the government. Primarily, this scheme offers benefits including health insurance, maternity benefits, and disability protection. And this is required for establishments with 10 or more employees.

Mainly, for those employees which earns up to ₹21,000 per month. So, this scheme is mainly provided for employees who deserve these services. For those employees which wants to get registered, go with the online process and must be completed within 15 days of the scheme becoming applicable. So, in terms of getting your rights, you can easily go with apply for ESI registration online in India and also ensure that you are an eligible employee for this scheme, before getting it. In case of sickness, maternity, disability, or death of employees, this scheme helps them by providing their social security benefits.

So, in this blog, you will learn about the scheme of ESI Registration for employees, with its uses and benefits for many employees.

Contents

1. ESI Registration: Its Uses and Benefits

For employees in a company, this certification helps them a lot with its uses and benefits. This certification is known to be a social security requirement for eligible employers in India. This mainly provides medical and financial benefits to employees. Also makes them independent in times of illness, accident, or death brought on by work-related factors. So, for many employees and workers, this ESI certification becomes a better deal for their journey.

The government also provides this to ensure safety and net against health and financial contingencies.

So, some more benefits and uses of this ESI certification are mentioned below:

Uses and benefits for employees	Uses and benefits for employers
1. Through this ESI certification government ensures that complete medical care is provided to employees and their families, including outpatient services, specialist consultations, diagnostic tests, hospitalization, and surgeries at ESI hospitals with no upper limits.	1. The ESI registration is compulsory for businesses with 10 or more employees and businesses that make as much as ₹21,000 a month.. Ensuring adherence to the ESI Act, 1948, and avoiding penalties like fines or imprisonment.
2. Employees also get the Cash compensation at 70% of the average daily wage for a period of 91 days during certified sickness. So, benefits during sickness also.	2. Those employers that are registered under the ESI registration are exempted from the Maternity Benefit under both the Employees’ Compensation Act and the Act.
3. Also for female employees get paid leave at 100% of their average daily, which is also extendable to further by one month on medical advice.	3. This scheme also removes the burden from many employers of providing financial support during a worker’s physical distress, because ESI automatically provides this support to those.
4. Under this ESI certification, employees can also obtain financial support during the time of work-related injuries or occupational diseases. such as for the Temporary Disablement Benefit, the Permanent Disablement Benefit.	4. Contributions made by the employer to the ESI fund are deductible business expenses that lower the corporation’s overall tax obligation.
5. During the period of any employee’s death due to having injury from employment, their dependents receive a monthly pension equal to 90% of the deceased’s wages	5. The ESI certification comes with many social service benefits, which provide relief to the employees, job satisfaction, and loyalty. This directly helps them in their talent and reduces employee turnover.
6. Fifteen thousand rupees in total is paid to the relatives or the person who performs the last rites of the deceased employee.	6. If any company is showing its demonstration to the ESI guidelines, then this also helps in the company’s reputation as a responsible employer and helps attract skilled professionals.
7. Employees also get financial assistance and proper medical care in case of involuntary job loss due to factory closure, retrenchment, or permanent invalidity.	7. Following many labor laws and ESI registration can also provide access to various government incentives and smoother business operations.

2. What are the Steps of Getting the ESI Certification?

In terms of getting your ESI certification, as an employer, follow some steps in terms of making it yours. Firstly, you must have to register online on the ESIC portal, then fill out the given application form with your unit and employee details. Deliver the files that the site requests. Make the six-month advance payment, and receive a 17-digit registration number via email. Also note that the process includes signing up, creating a user ID and password, and then completing the employer registration form.

So, these are the short steps for getting your Employee State Insurance certification as an employer. For more detailed information on the process, read the points below:

Step 1: Create your account on the ESIC portal

Firstly, go to the portal of ESIC. There, you have to click on the button to sign up is visible on the home screen.. Then provide the required details and submit the form. After that, you received an email confirming it.

Step 2: Sign up to be an employer

Then use your new credentials in order to log in ESIC portal by selecting the new employer registration. Then choose your unit type and click submit.

Step 3: Fill out the registration form

Then choose “Employer Registration – Form 1”, and fill in all your details there. Then prepare your required documents and information, such as your company’s registration certificate, address proof, GST certificate, employee list with salary information, and bank details. Also, attach a signature if required.

Step 4: Make the upfront payment

The “Payment of Advance Contribution” page will then appear after providing your form. Then pay the advance contribution for the first six months.

Step 5: Receive your registration letter

Once the portal receives your payment successfully. The department of ESIC sends you an email with a system-generated Registration Letter (C-11). In there is a 17-digit ESI registration number, which serves as proof of your registration.

3. Which Businesses Require the ESI Certification?

Mainly, this certification is made for employers in terms of protecting the rights of their employees. Also for non-seasonal factories and specific establishments that have ten or more employees. Mainly provided for those employees whose monthly wages do not exceed ₹21,000, for these, the ESI certification is mandatory.

And there are more businesses also included in the list of this employee’s PF registration.

Know more about these businesses below:

Non-seasonal factories – This category includes those factories with 10 or more employees that are covered nationwide; for those, the ESI certification is mandatory.
Specific establishments – This category includes a list of businesses such as Shops, Hotels, and restaurants engaged only in sales, Cinemas, including preview theatres, Road motor transport establishments, Newspaper establishments, Private medical institutions and hospitals, Private educational institutions, and temporary and contract workers for municipal corporations or Municipal Bodies.
Establishments under Central Government coverage – This includes such as Insurance business, Non-Banking Financial Companies, Port trusts, Airport authorities, and Warehousing establishments.

4. Role of LegalRaasta Behind the ESI Certification!

We are a certified company offering a variety of services tailored for business founders and manufacturers. We also offer an ESI PF registration. With us, you can gain access to it without hassles. LegalRaasta makes available an ESI certificate for startups and growing companies that need it, both for owners and businessmen. Count on us as your pathfinder to growth and success because we shall make sure we deliver our legal services perfectly. A few providers are offering their services in this market space, though we happen to be one of them, making it easy for you to get this service.

5. Frequently Asked Questions

Why government provide the ESI certification for employees?

Ans. This certification is important because it provides employees with their full rights, such as medical care, maternity benefits, and disability coverage in the form of social security.

For whom is this ESI certification issued?

Ans. Mainly, this ESI certification is issued to employers who provide jobs to ensure equal rights to the employees.

What are the benefits of this certification for employers?

Ans. For employers, this ESI certification provides many benefits, such as increasing the reputation of their company by following ESI guidelines, also protect them from many fines and penalties, and due to having ESI guidelines many skilled professionals attracted towards the company.

Who issues this ESI certification?

Ans. The Employees’ State Insurance Corporation (ESIC) issues ESI certificates in India.

Is the process of getting this ESI certification hard?

Ans. No, the process of getting ESI certification is not hard for any employer or company. Follow some easy steps in terms of getting your ESI certification.

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