How it works!

basic
Fill Basic Details and Upload Documents

Fill required basic details and upload documents

payment
Payment

Payment of service and government fee for the service selected

ragistration-img
Expert Assigned

An expert will be assigned to your service.

ragistration-img
Delivered

Be Relaxed. We’ll get it done for you & update.

Overview

Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary and other advantages to workers. ESI is managed by an autonomous authority - Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment. By law, any company that has more than 10 employees mandatorily need to have ESI (In some states, the number of employees is 20) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC.

Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. Employees in receipt of a daily average wage upto Rs.176/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

 

What is ESI Registration

It is a vast social security scheme designed to accomplish the task of providing social protection to the ’employees’ in the organised sector against the uncertain events of sickness, maternity, disablement and death due to injury sustained in the course of employment and to provide medical care to the insured employees and their dependents.

The scheme provides complete medical care to the employees registered under the scheme during the period of incapacity for recuperation of health and working capacity. It provides monetary assistance to compensate for the loss of wages during the period of absence from work due to sickness, maternity and employment injury. The scheme provides medical care to the employees’ dependents also.

All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.

Applicability

The following establishments employing 10 or more persons attracts ESI coverage:

  • Shops
  • Hotels or restaurants not having any manufacturing activity, but only providing service.
  • Cinemas
  • Roadside Motor Transport Establishments
  • Newspaper establishments
  • Private Educational Institutions and Medical Institutions

In some states, the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

Procedure

Earlier, there was manual registration. Now, the ESIC registration is completely online. Following are the steps involved in ESIC Registration:

Step 1: Log In To ESIC Portal

  • An employer requires getting himself registered on the ESIC portal.
  • An employer can register by clicking on the ‘Sign Up’ button on the ESIC portal under the ‘Employer Login’-option on the home screen.
  • The employers need to fill in the details after clicking on the ‘Sign up’ button, and submit the form.

Step 2: Confirmation Mail

  • After submitting, the form for sign up to the portal the employer will obtain a confirmation mail sent, to the registered mail ID & mobile number entered at the time of sign-up.
  • For registering as an employer & employee under the ESIC scheme, the email will contain the username & password details.

Step 3: Employer Registration Form-1

  • Next, along with the username and password received in the mail, log in to the ESIC portal. This will pass on to the page having the option of ‘Tab - New Employer Registration’. Click It. 
  • Next, from the drop-down list select the ‘Type of Unit’ and click on the ‘Submit’ button. The ‘Employer Registration – Form 1’ will come out & the employer requires filling in the details. 
  • The Employer Registration Form-1 concedes details pertaining to the unit of the employer, details of the employer and employees. He needs to click on the ‘Submit’ button, once; the complete form is filled by the employer. 

Step 4: Payment For Registration

  • The ‘Payment of Advance Contribution’ page will open after submission of the Employer Registration Form-1, where the employer requires filling the amount to be paid & select the payment mode. The employer will need to pay the advance contribution for 6 months.

Step 5: Registration Letter

  • The system generated Registration Letter (C-11) is sent to the employer on the successful payment of six months advance contribution, which will contain a 17 digit Registration Number by the ESIC department.
  • The Registration Letter (C-11) is a valid proof of registration of the employer.

Documents

Following are the documents, which are required to be submitted by the employer along with the application for ESI registration:

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 or Trust Deed - dependent on the applying entity
  • Photocopy of registration

Certificate of commencement of production

  • Registration No. of CST/ST/GST

Returns to be filed

After the registration ESI Returns have to be filed twice a year i.e. May 11th and November 11th . The following documents are required for the filing of the returns:

  • Register of attendance of the employees.
  • Form 6 – Register.
  • Register of wages.
  • Register of any accidents which have happened on the premises of the business.
  • Monthly returns and challans.

Penalty

In case of any non-compliance by an employer, such as failure to get ESIC employer registration online or not fulfilling ESI return filing procedure, he shall be liable for a fine of INR 10,000/-.

Post-Registration

Once the entity is covered under ESIC, it needs to comply with mandatory guidelines as issued by the Act:-

  • Maintenance of attendance register
  • A complete register of wages for workers
  • Inspection book
  • Monthly return & challan within 15th of succeeding month
  • The register maintained to record any accidents that happened on the premises.

Benefits

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 upto 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 upto 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: Enhanced sickness benefit was an encouragement measure for ESI employees to undergo vasectomy or tubectomy for the welfare of the family. Extension of this benefit can be availed in case there are post-operative complications.

Request a Call Back

Helpful resources

gst
Udyam Registration or MSME About, Procedure, Benefits and Documents required

Udyam Registration is the new process of MSME/Udyog Aadhar Registration launched by the Ministry... Read More

22 Jul, 2021

By CA Swati Agarwal

Testimonials

What our
clients say about us