ESI Registration – Benefits, Eligibility, Documents & Process
Introduction to Employee State Insurance (ESI)
The term ESI is an abbreviation of Employee State Insurance. This is a programme that is managed under the purview of the Employee State Insurance Corporation. ESI functions as a self-governing body. It has been created under the aegis of the Ministry of Labour and Employment of the Government of India. The scheme has been created to benefit Indian workers working in different sectors. As a part of the scheme, the employees are offered a wide array of monetary, medical and other such benefits by their employer.
If a business firm has more than 10 employees or 20 depending on the state, who do not earn more than 21,000 rupees a month they would be eligible to register themselves with ESIC (Employee State Insurance Corporation).
The ESI contribution rate of employer and employee are revised time to time. As per the present scheme, the employer has to pay itself 3.25% (w.e.f 01/07/2019) of the employee’s salary each month and the employee has to contribute 0.75% of their salary for the same period.
To get the advantages of Employee State Insurance scheme, the employer has to register under ESIC and ensured person’s (employee’s) registration in ESI portal that is going to get the benefits from it. Now employers can submit their application online for registration under ESI Act.
Benefits of ESIC Registration
The employees who register under ESI scheme could get the several social security benefits such as:
- Medical Benefit
- Sickness Benefit
- Maternity Benefit
- Disablement Benefit
- Dependants Benefit
- Other Benefits such as Funeral Expenses, Confinement Expenses, Vocational Rehabilitation, Physical Rehabilitation, Old Age Medical Care
ESIC registration in Karnataka provides employees a lot of benefits as has been alluded to already. For instance, they can achieve sickness cares to about of 70% of their wage. This is applicable in case of all certified diseases and ones that last for not more than 91 days in a year. They are also entitled to gain medical benefits along with their family members. Women get maternity benefits when they are pregnant. These are regarded as part of their paid leaves. If an employee dies while working, 90% of the salary would be provided to their dependents each month following the death.
These same benefits are also provided in case the employees become disabled when they are working. The scheme also offers coverage of burial costs. The beneficiaries of the plan also get coverage for medical expenses at old age.
Entities Covered under ESIC Scheme
According to Section 1 (5) of the ESI Act, the following entities are required registration under ESI Act:
- Factories, Workshops, Plants
- Road motor transport companies
- Hotels and eateries selling products and services
- Newspaper formations that are not included in the Factory Act
- Cinemas theaters
- Private educational institutions
Eligibility Criteria for ESI Registration in India
Apart from what we have mentioned already, there are some other eligibility factors in this case.
- If an employee earns a gross salary of less than 21,000 a month, they can take part in the programme with assistance from their employer.
- Any establishment that has registered with EPFO (Employees’ Provident Fund Organization) can also become a part of the same.
- In case of industrial units, where employees have a high chance of injuries and other health issues in the business premises and where all of them earn less than 21,000 a month, this is a mandatory requirement.
Documents Required for ESI Registration
The following documents are required for ESIC registration:
- Registration certificate procured either under the Shops and Establishment Act or the Factories Act
- Compensation specifics of all employees
- Partnership deeds in case of partnerships, and Certificate of Registration in case of companies
- A cancelled cheque from the bank account of company is required for the verification purpose)
- Articles of Association and Memorandum of Association of the company
- The list of the directors of the company
- The list of all the employees
- The list of the company shareholders
- PAN (Permanent Account Number) cards of the employees as well as the PAN card of the employer
- Register of employee attendance
ESI Registration Process
For applying ESI registration, the applicant has to follow the steps to obtain the certificate:
- Visit ESIC website
- Do Sign Up in website, receive Username & Password
- Enter login details on ESIC portal
- Select New Employer Registration and Select Unit Type
- Fill details in the Employer Registration Form – Form1
- Pay initial contribution
- After filing the Form, verification has to be carried out towards the organization. Once verified, a 17-digit unique identity number will be granted to the organization.
- ESI filing has done for company. Receive Registration Certificate/Letter C-11
- Register your employee details and ensured them for Employee State Insurance
- Get employees ESI card by submitting photographs and details of family members
How We can Help You with Online ESI Registration?
We can help you complete the ESIC registration in Bangalorein just 12 days. We PatsonLegal also offer several other benefits in this regard. We offer free consultation at the time when you call us. We collect documents from your side, ask for information and prepare the entire ESI application and process it thoroughly at each and every step of ESI registration. We have professional experts who would be taking care of the final registration process. We’ll help obtaining registration certificate for your organization and deliver you through our executives or email. Our experienced CAs and CSs are helping entities for getting their new registrations, filing monthly and annual returns to make the effectiveness of company ESI scope.