ESI Registration
Esi registration stands for employee state insurance, which is managed by the employee state insurance corporation (ESIC). This is an autonomous body governed by law under the ministry of labour and employment. This is completely online process for registration of Indian workers to provide with a huge variety of medical, monetary and other benefits from the employer, it is the digital process and no documents are required to be uploaded for registration. Any factory and company having more than 10/20 employees, having maximum salary of Rs. 21000/- has\ to mandatorily register itself with the ESIC. Under ESI scheme, the employee contribution is 17.5% and employer contribution 4.75% respectively.
WHAT IS THE PROCESS OF ESI REGISTRATION:-
- LOG IN THE ESIC PORTAL:An employer needs to get himself registered on the ESIC portal-> An employer can register on the ESIC portal by clicking on theEMPLOYER LOGIN option on the home screen-> On the next page, click on the “sign up” button-> After clicking on thesign up button, the employers need to fill in the details and submit the form.
- CONFIRMATION MAIL:After submitting the form for sign up to the portal, the employer will receive a confirmation mail send to the registered mail id and mobile number entered at the time of sign up – >The email will contain the username and password details for registering as an employer and employee under the ESIC scheme.
- EMPLOYER REGISTRATION FORM-1:Next, log in the ESIC portal by clicking on the EMPLOYER LOGIN option on the home screen and entering the username and password received in the email. This will redirect to the page having the option of “NEW EMPLOYER REGISTRATION” –>Click on the “NEW EMPLOYER REGISTRATION” option –> Next, select the Type of unit from the drop-down list and click on the submit button-> The employer registration- form 1 will appear and the employer needs to fill in the details.
- PAYMENT FOR REGISTRATION: After submission of the registration form, form-1 a message will be displayed on the screen for payment of advance contribution, click on the PAY INITIAL CONTEIBUTION link -> The initial contribution amount will be displayed, select the ONLINE option and click on the SUBMIT button ->The “challan number” will be displayed on the screen. Note down the challan number and click on the “continue” button -> The PAYMENT GATEWAY page will open where the employer needs to select the mode of payment and fill the amount to be paid.
- REGISTRATION LETTER: On the successful payment of six months advance contribution, the system generated registration letter (C-11) is sent to the employer on email which will contain a 17 digit registration no. by the ESIC department -> The registration letter (C-11) is a valid proof of registration of the employer.
BENEFITS OF ESI REGISTRATION
- MEDICAL BENEFITS-Medical benefits to an employee and his family members.
- FUNERAL BENEFITS-Amount of Rs. 10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employments.
- DEPENDANT BENEFITS- If the death of the employee happens while on work- 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee.
- SICKNESS BENEFITS-Sickness benefits at the rate of 70% in the form of salary, in case of any certified illness and which lasts for a maximum of 91 days in any year.
- MATERNITY BENEFITS-Maternity benefits to the women who are pregnant.
- Certificate of registration in case of company, and partnership deed in case of a partnership.
- The compensation details of the employees.
- List of directors of the company.
- List of the shareholder of the company.
- List of all the employees working in establishment.
- PAN card of the business entity as well as the employees working under the entity.
- Memorandum of association and articles of association of the company.
- Register containing the attendance of the employees.
- A cancelled cheque of the bank account of the company.
- Registration certificate obtained either under the- factories act, or shops and establishment act.
COMPLIANCE AFTER ESIC REGISTRATION
- Maintaining the attachment register.
- Maintaining a complete register of wages for workers.
- Inspection book.
- Monthly return and challan within 15th of the succeeding month.
- Maintain a register that records any accidents that happened on the premises.
After the registration under the ESIC the employers have to file ESI returns half-yearly. The following documents are required for the filling of the return:
FAQs (Frequently Asked Question)
Q1.WHAT IS ESI REGISTRATION?
Ans.-ESI is a Employee state Insurance registration is mandatory for companies with 10 or more employees. Esi provides social security to employee through medical care, disability benefits, maternity benefits and more.
Q2.HOW TO APPLY FOR ESI REGISTRATION?
Ans.Employer can apply for ESI REGISTRATION online visiting the ESIC website and filling out the application also the employer must provide various details such as their business, employee and bank account details.
Q3.WHO IS ELIGIBLE FOR ESI REGISTRATION?
Ans.Employers who have 10 or more employees in their organization are eligible for ESI registration and employees must earn a salary of up to Rs 21,000 per month to be eligible for ESI benefits.
Q4.WHAT ARE THE BENEFITS OF ESI REGISTRATION?
Ans.-ESI registration provides various benefits to both the employer and the employee, ESI registration provides medical care and benefits for employees in case of sickness, maternity, disability and death due to employment injury.
Q5.WHAT DOCUMENTS REQUIRED FOR ESI EGISTRATION?
Ans.The documents are required for ESI registration include the employers PAN CARD, ADDRESS PROOF, BANK ACCOUNT DETAILS such as an ADHAR CARD, SALARY DETAILS AND PHOTOGRAPHS.
Q6.WHO NEEDS TO REGISTER FOR ESI?
Ans.Any establishment or business entity having 10 or more employees (20 or more in certain states) must register for ESI.
Q7.WHAT IS THE TIME LIMIT FOR THE REGISTRATION OF ESI AFTER THE ESTABLISHMENT BECOMES ELIGIBLE?
Ans.This registration must be done within 15 days from the date establishment becomes eligible for Registration.
Q8.HOW IS THE ESI CONTRIBUTION CALCULATED?
Ans.The contribution towards ESI is calculated as percentage of the employee wage, where the employee’s contribution is deducted from their wages and the employer contributes the remaining portion.
Q9.CAN THE ESI REGISTRATION BE CANCELED?
Ans.Yes, if an establishment ceases to exist or no longer falls within the purview of ESI, the registration can be canceled.
Q10.CAN A REGISTERED ESTABLISHMENT CHANGE ITS ADDRESS?
Ans.YES, A registered establishment can request a change in address by submitting the required documents to the appropriate ESIC office.
Q11.IS IT MANDATORY FOR EMPLOYEES TO CONTRIBUTE TO ESI?
Ans.Yes, both the employer are required to contribute to ESI, the contribution rates are shared between them.
Q12.IS IT MANDATORY TO RENEW THE ESI REGISTRATION?
Ans.No, this registration does not require renewal. Once registered, it is valid until the establishment is eligible and complaint with ESI regulations