ESI Registration
To register with ESIC Registration Online, the applicant has to present a registration certificate, business PAN Card & address proof, bank statements, and employee details, a MOM and AoA of the company along with their compensation. We at Ritedger help and guide you register ESIC online India. Basically, ESIC stands for Employee State Insurance Corporation and is an autonomous body regulates and governs the Employee State Insurance in India under the Ministry of Labor and Employment.
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Overview of ESI Registration
Advantages of ESI Registration
Medical benefits are provided to the workers at the rate of 70% of the employee’s salary and if the illness or sickness exceeds for more than 91 days in one year, the same is also certified to the employee.
Along with the insured person his family members are also provided with medical benefits.
To women, maternity benefits are provided in the form of paid maternity leaves
An insured person holds ESI insurance for about three years is offered with unemployment benefits or allowances such as providing 50% of the salary for one year
In case the insured employee death happened while in employment, 90% of the salary of that employee is provided to his family, and importantly the funeral expenses of the insured person are provided if the death of the employee covered as per ESIC company registration
After retirement or in old age, the ESIC provides Medical benefits to them which is very useful.
If the insured person has any permanent disablement, 90% of his salary is given in the form of an insurance benefit as a monthly payment
Eligibility for ESI Registration
Following company or business employing more than 10 employees are eligible to obtain ESI and PF registration online:
As above mentioned, if the company holds ten or more employees or workers during the previous year should mandatorily obtain ESIC Registration certificate. But in a few states, the ESIC applicability is limited, means when the company holds more than 20 employees.
The insurance is deducted from the employee’s salary for those who are earning a monthly income more than Rs. 21000 that includes basic wages and dearness allowance.
Nevertheless, ESIC rules and regulations are different for the state to states, and therefore, certain rules and regulation also varies.
ESI scheme offers several advantages to employees as per the rules and regulations of ESI with a large network of hospital, dispensaries and medical clinics to provide needed medical care as quickly as to the insured person.
It is mandatory for an entity to obtain an ESI company registration certificate within 15 days of getting into the eligibility category.
Documents Required for ESI Registration in India
- Any License or registration certificate granted under Shops & Establishment Act
- MOA & AOA if the applicant is a Company
- If the applicant is a Partnership Firm, Partnership deed is required
- In case the applicant is a Limited Liability Partnership, LLP Agreement is required
- Certificate of incorporation of production of manufactories and Registration certificate for other companies
- PAN of the company
- PAN and Aadhar card of employees
- Nominee details of the insured person
- Bank statement of the company
Registration Procedure of ESI Registration in India
- Visit the official website of ESIC
- The applicant should sign up with unique user-id and password, as it needed for further actions such as return filing or other same kinds of activities.
- Login into the official website using the registered user-id and password to complete the registration process.
- Fill all the information in the online application and submit it along with prescribed fees of the advance contribution for the next six months.
- The registration certificate is issued with a 17 digit unique registration number by epf & esi registration department once the application process is successfully completed
ESI Monthly Contribution
The scheme to register for esic is a contributory scheme for both employee’s and employer’s and it is required at a specific rate. The rates are amended regularly. Mentioned below is the monthly contribution rate which is contributed by both employer and employee mandatorily:
- The employee has to contribute about 0.75% from his salary to the ESI Fund
- The employer has to contribute about 3.25% of the basic salary paid to workers.
Employees whose daily wage is up to Rs137 are not entitled to be a part of the contribution. Nevertheless, it is the responsibility of the business owner or company or employer to contribute their own shares monthly in respect of these workers or employees.
Post-Registration Compliances
Once the business or organization is covered under ESIC online registration process, it is mandatory for the entity to comply with required guidelines as prescribed by the Act:
- Attendance register maintenance
- Complete information or report on the register of wages for employees
- Monthly challan and return within 15th of every month
- If the register which has records of the employee get destroyed due to any accidents that occurred on the registered premises.
Frequently Asked Questions
ESI is compulsory for companies or business which has 10 or more workers before it was 20 later it was revised to 10. ESI contribution is needed for all the employees whose earning is less than Rs. 21,000/month.
All employees whose monthly salary excluding bonus, overtime, leave and encashment does not exceed more than Rs. 21,000/month, are qualified to get all the benefits under the ESIC scheme. Employees whose daily earning average wage up to Rs.176 are relieved from ESIC contribution.
Employees whose monthly salary is about Rs 21,000 or below are applicable under the ESI Act. The monthly salary limit for coverage under the Act had been raised from Rs 15,000 to Rs 21,000 per month in December 2016..
The ESI scheme is a self-financing scheme and is primarily built out of funded from employers and employees collectable monthly at a fixed rate of wages paid.
Once the entity is registered under the ESIC act, it is issued with 17 digits unique identification number and it is known as ESIC Code.
Basic wages comes under ESIC is the total of Basic salary plus Dearness Allowances that excludes the overtime done by the employee.
Yes, it compulsory for the entities to get the ESIC Registration Certificate by registering under ESIC. The applicant can register through online on the official website of ESIC.
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