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
Quick & Easy100% AccuracyGet Expert AdviceComplete services under one roofEmployee State Insurance Corporation is an autonomous body created by an act of Parliament under the Ministry of Labour and Employment, Government of India.
This scheme is for Indian workers who are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees) who have a maximum salary of RS.21000 has to mandatorily register itself with the ESIC.
Further in the press conference held on 14.05.2020 finance minister has highlighted the following provisions of labor law code foe expansion of ESI coverage for benefit of workers:-
1. Extension of ESIC coverage pan- India to all districts and all establishments employing 10 or more employees as against those in notified districts/ area only.
2. Extension of ESIC coverage to employees working in establishment with less than 10 enployees on voluntary basis.
3. Mandatory ESIC coverage through notification by central government for employees in hardazous industries with less than 10 employees.
ESIC registration
As per the government notification under Sec 1(5) of the ESI Act the following entities are required to be registered with ESIC:
1. Shops
2. Restaurants or Hotels only engaged in sales.
3. Cinemas
4. Road Motor Transport Establishments
5. Newspaper establishments (which is not covered under the factory act)
6. Private Educational Institutions
RATE OF CONTRIBUTION
Employee State Insurance Corporation is an autonomous body created by an act of Parliament under the Ministry of Labour and Employment, Government of India.
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For Employees
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 are given to the insured person & their family members (in some cases). These medical benefits are given in the form of patient treatment or attendance in the hospital or dispensary, clinic or other institution.
Maternity Benefit for confinement/pregnancy for Twenty Six weeks, which is extendable by further one month on medical advice at the rate of full wage.
If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee. Funeral expenses are also given to the family.
In case of disability of the employee for not less than 3 days shall be entitled to the benefits under this scheme.
For Employers:
The employer has to just make a contribution of 3.25% and in return the employer will get compensation for work related accident and disability.
Since the protection against the work related accidents and disabilities are provided by the scheme. Employers can just focus on the betterment of their organization without worrying about uncertainties.
Getting an ESI Registration for the industrial unit/ organization is the legal liability of the employer under the Section 2A of the ESI Act 1948, read with the Regulation 10-B of the same Act. The ESIC Registration has to be obtained within 10 days from the date of commencement of operations at the industrial unit/organization.
The most primary advantage of the ESIC registration is that you can cover the monetary risks of your employees along with their dependents that might occur owing to ill-health or their decease.
As per the Act, if the contribution by the employer is not deposited within the stipulated time, then an interest of 12% p.a. is levied.
PLUS TAXES(18%)
PLUS TAXES(18%)
PLUS TAXES(18%)
1. A registration certificate obtained either under the:
a. Factories Act
b. Shops and Establishment Act
2. Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
3. Memorandum of Association and Articles of Association of the Company
4. A list of all the employees working in the Establishment with their DOJ and Rate of Salary.
5. PAN Card of the Business Entity
6. The compensation details of all the employees
7. A cancelled cheque of the Bank Account of the Company
8. List of Directors of the Company
9. List of the Shareholders of the Company
10. Register containing the attendance of the employees
11. Form No – 1 (Employers Registration Form) is to be downloaded and filled.
12. After downloading the PDF version of the form and filling it, it has to be submitted on the website itself along with the above-mentioned documents.
13. Declaration Form of each employee along with their 2 Postcard size photographs (Optional)
For ESI compliance the employer has to maintain following records:
1. Muster roll, wage record and books of Account maintained under other laws.
2. Accident Register in new Form-11 and
3. An inspection book.
4. The immediate employer is also required to maintain the Employees’ Register for the employees deployed to the principal employer.
After the registration, ESI Returns have to be filed twice a year. You can avail our return filing services for simplifications of all these tasks. The following documents are required for the filing of the returns:
1. Register of Attendance of the Employees
2. Form 6 – Register
3. Register of wages
4. Register of any accidents which have happened on the premises of the business
5. Monthly returns and challans
