What is ESI?
The word ESI stands for Employee’s State Insurance which is a self-financing social security and health insurance scheme for the workers of India. The Employee’s State Insurance Corporation (ESIC) manage its fund according to the rules and regulations stipulated there in the ESI Act 1948. For availing its benefits you need to obtain ESI Registration.
What is ESIC?
It is the autonomous corporation by a statutory creation under the Ministry of Labor and Employment, Government of India. The corporation can raise the loans and take measures for discharging such loans with the prior sanction of the central government as it is a legal entity. Moreover, it acquires both the movable and immovable property.
What is the ESI Scheme?
It is the most popular scheme amid employees engaged in different economic sectors in entire India. The autonomous and self-financing social security and labor welfare organization (ESIC) administrate and regulate the ESI scheme as per the rules and regulation given in the Indian ESI Act of 1948.
What is ESI Registration?
ESI Registration is the proper registration under the ESI scheme of ESIC. This Registration ensures the availability of wide range of medical, monetary and other benefits to the employees of any employing entity having 10 or more employees. The facility of ESI is very elegant for improving the health, morale etc and can boost the performance and retention.
When is ESI Required?
ESI Registration is required when a company or an organization having ten employees or more with individual wage or salary falling under the limit of INR 15000 per month. After the registration process, ESIC gives recognition to its employees through alloting the unique identification code which is of 17-digit.
The registered employing entity has to contribute 4.75% of the total salary( monthly) which is payable. Whereas the eligible individual employees need to contribute only 1.75% of their individual monthly salary to the ESIC Funds. It shall be deducted every month in a year. Employees who are getting only INR 100/- per day shall not contribute to the ESI scheme.
Benefits of ESI Registration
The large network of branch offices, dispensaries and hospitals located all over India provide various benefits of ESI Registration that are given below:
- When the certified sickness of employee lasting for a maximum of 91 days in any year then sickness benefits in form of salary at the rate of 70%.
- An array of medical benefits and facilities to the employee and his/her family.
- Maternity benefit to pregnant woman employees in form of paid leaves for three months.
- In the case of death of the employee caused by an occupational hazard then ESIC is liable to pay 90% of his/her salary to the dependents every month.
- When the employee is disabled to do work then 90% of the monthly salary will be paid.
- Other benefits like funeral expenses compensation, physical rehabilitation, vocational rehabilitation, old age medical facility will be given to the concerned employee.
ESI Registration Procedure and Requirements
Registration procedure contains mainly two tasks:
- The employer of the company needs to fill the complete form (Employer’s registration Form-01) to the ESIC, along with the necessary documents.
- The eligible employee is required to fill in the form-I along with the documents and a family photograph to the employer.
What are the documents required to submit to the ESI Office by the employer for getting registration?
The list of documents which are to be submitted along with the Registration Form are:
- Certified documents of company incorporation and business or profession of the company.
- Address Proof
- PAN CARD
- Company bank account
- All certificate related to tax and applicable documents
- Documents submitted by the employees to the employer.
- Document containing details of the employment, salaries, attendance etc of the concerned employees.
- Other documents if in case, ESI Office demand.
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