ESI Registration

ESI Registration Overview

Employees State Insurance Corporation of India is an integrated social security scheme enacted in 1948 to provide social security to workers/employees which guaranteed to provide full medical facilities to their immediate dependents or family members. Furthermore, it also promises adequate cash benefits to insured workers/employees for loss of wages or earning capacity in times of physical distress arising out of sickness, employment injury or unemployment.

Eligibility under ESI

Any Factory/Establishment/Firm where manufacturing process is carried on and which employs more than 10 persons will come under the coverage of ESI Act and must register with the ESI. Under Sec 1(5) of the Act, the Scheme has been extended to the shops, Hotels, Restaurants, Cinemas including cinema theatres, road motor transport undertakings, newspaper establishments, private medical and educational institutions etc. Thus, in effect, permanent employees, temporary employees in the formal sector and employees in unorganized sector are covered. There must exist an employer-employee relationship by which the employer deducts 0.75% amount from the wages of the employee adds another 3.25% of the employees’ wages and is expected to make the payment to the ESIC. Hence, self-employed persons such as those who run auto-rickshaws, street vendors, etc., will not be covered under the Act. The existing wage limit for coverage under the Act is Rs. 21,000/- per month (with effect from 01.01.2017)

Benefits under ESI Act

  • Medical Benefit
  • Sickness Benefits
  • Maternity Benefits
  • Dependants Benefits
  • Disablement Benefits
  • Other Benefits

Other Benefits

  • Funeral Expenses
  • Confinement Expenses
  • Old Age medical aid
  • Extended medical benefits
  • Enhanced medical benefits

Contribution Period

There are two contribution periods each of six months duration.

  • 1st April to 30th September
  • 1st October to 31st March

Documents required for taking ESI Registration

  1. Name and address of the Establishment with pin code.
  2. Aadhar Card of Principal Employer
  3. Mobile number (Aadhar linked) & email id of establishment.
  4. Pan of Establishment
  5. Pan of Principal Employer
  6. Digital Signature of the Authorised person
  7. Copy of GST Registration
  8. Bank Account details of Establishment
  9. Date of Commencement of Business & Nature of work carried out in the Establishment
  10. Revenue demarcation(Nearest Road or Street) & nearby police station
  11. Registration Certificate(Shop Registration Certificate or Registration under Factories Act)
  12. Aadhar, Pan, Mobile number(Aadhar linked) & Date of Joining of Manager
  13. Copy of Rent Agreement(if functioning in a rented building) or Ownership certificate issued by the local body(if functioning in own bulding)
  14. Date on which the employee strength become 10.

Penalty if not registered

In case of any non-compliance by an employer, such as failure to get esic employer registration online or not fulfilling esi return filing procedure, he shall be liable for a fine of INR 10,000/-.

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