Employees State Insurance Registration

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. This scheme is started for Indian workers. Under this scheme, the workers are provided with a huge variety of medical, monetary and other benefits by the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have the maximum salary of Rs. 21000/- 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 employer needs to contribute only 0.75% of his monthly salary every month of the year. If the employee’s daily average wage is up to Rs.137, they are exempted from making the contribution; however, the employer must make their share of the contribution

Who needs to register for ESI? 

The following establishments having 10 or more employees attracts ESI coverage.

1. Shops
2. Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’
3. Cinemas including preview theaters
4. Road Motor Transport Establishments
5. News paper establishments
6. Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)

Documents Required For ESI Registration

In below all the documents is required:-

A registration certificate obtained either under the:  Factories Act ,.Shops and Establishment Act

Certificate of Registration in case of Company, and Partnership deed in case of a Partnership

Memorandum of Association and Articles of Association of the Company

A list of all the employees working in the Establishment

PAN Card of the Business Entity as well as all the Employees working under the entity

A cancelled cheque of the Bank Account of the Company

Digital signature( class 3)

What Are The Benefits Of ESI Registration ?

The benefits of registering under this scheme are varied. Some of them are:

Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year

Medical Benefits to an employee and his family members

Maternity Benefit to the women who are pregnant (paid leaves)

If the death of the employee happens while on work – 90% of salary is given to his dependents every month after the death of the employee

Same as above in case of disability of the employee

Funeral expenses

Old age care medical expenses