What is Employee State Insurance?
Employee State Insurance(ESI), which is managed by the Employee State Corporation. It is a kind of self-governing body, which is made by the law under the ministry of labour and employment. The ESI scheme started for the Indian workers. The Indian workers are given lots of benefits; such as, medical, monetary, and other benefits, which is provided by the employers. Any company with more than 10 employees (in a few states the count of employees is more than 20) having salaries with the maximum amount of Rs. 15000, have to register themselves with ESIC.
In this scheme, the employer has to contribute 4% of the total monthly salary which is payable to the employees. On the other hand, every month the employee has to contribute 1% of their monthly salary per year. The exemption of the contribution is given to those people who have a salary of fewer than 100 Rs per day.
A Few Benefits of ESIC Registration:
There are several benefits to this scheme, such as:
- Benefits for sickness, which is given at the rate of 70%. It is given when any medically certified sickness is certified and lasts for 91 days in a year.
- Medical benefits for employees and their family members. Maternity leaves, which are paid for pregnant women.
- If any employee dies while working, 90% of his salary is given to his nominees.
- In the case of disability caused while working, 90% of the salary is given to the nominees.
- Old age medical expenses are provided to the workers
- Funeral expenses
What Comes Under The ESIC?
- Restaurants and Hotels (which are engaged in sales)
- Road Motor Transport Establishment
- Private Education Institutions
- The Establishment of Newspaper (come under the factory act)
Documentation Required for ESIC Registration:
The documentation required for the registration of ESIC are:
- The registration certificate of ESIC obtained either under the factory’s act or the Shop and Establishment Act
- The registration certification in case of the company, or partnership deed in the partnership case
- The articles and memorandum of the association required
- Employees who are working in the Establishment
- Business’s PAN card and the PAN Card of all the employees
- The details of the compensation of all the employees
- The bank account’s cancelled cheque of the company
- The director’s list of the company
- The shareholder’s list of the company
- The attendance register is required of the employees of the company
When the documentation collection is done, now it is the time to follow the procedure for ESI Registration:
- Download and fill Form No 1 (the Employers registration form)
- After downloading the PDF version, and filing it, you need to submit it on the website along with the documents mentioned above
Click Here To Register in ESIC
Process After The Form Verification:
- When the verification is done, after that you will receive a unique 17 digit number by the government
- The employees, who have completed the registration of this scheme will give to the employers the filled form and photographs of his family for completing the process. It is a part of the process, from which the ESI card is provided to the applicant
- The changes for the company and employee get initiated to the ESI
Returns Filed Every Year When The Registration is Done:
When the registration is done, the ESI returns need to be filed two times every year. To file the returns, below-written documents are required:
- Attendance register of the employees
- Register of Form 6
- Wages Registration
- Challans and Returns on a Monthly Basis
- Register for the accidents done in the premises of the organization
Read how to Fill PAN Card Application Online?