Employee State Insurance (ESI) registration is a mandatory compliance requirement for businesses in India, governed by the Employee State Insurance Corporation (ESIC). This scheme provides social security and health insurance benefits to Indian workers earning a specified monthly wage, typically extending to their dependents. Depending on the business type and location, it applies to companies with 10 or more employees.
At SRN Filings, our team of experts is dedicated to assisting businesses in navigating the complexities of ESI registration. With our comprehensive understanding of regulatory requirements and a client-centric approach, we ensure a seamless and hassle-free ESIC registration online process for your establishment, securing the wide-ranging benefits of the ESI scheme for your employees.
ESI Scheme
ESI (Employee State Insurance) operates following the ESI Act of 1948. It is a government scheme designed to provide social security benefits to workers. The administration of this scheme falls under the purview of the Employee State Insurance Corporation (ESIC). Employers must formally register their establishments with ESIC and furnish worker details for inclusion in the program.
Complying with the intricate regulations stipulated by the government can pose a significant challenge for employers. SRN Filings’ ESI experts are available to assist you with these matters.
Definition and Scope of Establishments Under the ESI Act
The Employee State Insurance (ESI) Act categorizes an establishment as any organized entity involving men or women, regardless of its physical location. This includes retail outlets and commercial shops, which are mandated to enroll in the ESI scheme if they employ 10 workers or 20 in certain states, provided these employees earn up to Rs. 21,000 per month, or Rs. 25,000 for individuals with disabilities.
Who is eligible for ESI Registration?
According to the official notice, the following state government-affiliated entities fall under the scope of the ESI Act according to Section 1(5):
- Retail outlets
- Dining establishments or hotels solely involved in sales
- Movie theatres, including preview facilities
- Establishments related to road transportation
- Newspaper organizations (exempt from the Factory Act)
- Private healthcare facilities
- Private educational institutions
- Casual workers employed by Municipal Corporations or Bodies
These entities are required to register with the ESIC if they have a workforce of 10 or more individuals.
Furthermore, the Central Government has expanded the ESI Act’s Section 1(5) coverage to include the following central government-related entities:
- Retail outlets
- Hotels and dining establishments
- Establishments related to road transportation
- Cinemas, including preview theatres
- Newspaper organizations
- Businesses involved in:
- Insurance
- Non-Banking Financial Companies (NBFCs)
- Port trusts
- Airport authorities
- Warehousing
For these central government-associated entities, mandatory ESIC registration is required when employing 20 or more individuals.
Eligibility criteria for ESI registration
The eligibility criteria for ESI registration are as follows:
- Employees in establishments, factories, or shops with more than 10 employees are eligible for ESI benefits under Section 2(12) of the ESI Act, 1948.
- All workers and their dependents across various industries and sectors can receive ESI medical benefits from ESIC-run hospitals and dispensaries.
Women employees earning less than Rs. 21,000 per month and individuals with disabilities earning less than Rs. 25,000 per month are eligible for maternity benefits under the ESI Act. This includes medical and cash benefits, as well as paid leave for various conditions such as pregnancy (pre and post-delivery), medical termination, miscarriage, and adoption.
Advantages of ESIC Registration
ESIC registration offers employees a comprehensive suite of benefits, safeguarding their health, income, and family. Key benefits include:
- Sickness Benefit: Employees are entitled to receive 70% of their wages for up to 91 days a year during certified sickness periods.
- Extended Sickness Benefit: Employees can receive an extended benefit at 80% of their wages for up to two years for certain long-term and severe diseases.
- Enhanced Sickness Benefit: Full wage compensation is provided for employees undergoing sterilisation, with 7 days for Vasectomy and 14 days for Tubectomy.
- Medical Benefits: Comprehensive medical care is available to employees and their families, ensuring their well-being.
- Retired Medical Benefits: Retired employees and their spouses are eligible for continued medical benefits upon paying an annual premium of Rs. 120.
- Maternity Benefit: Pregnant women are entitled to total wages as maternity benefit for 26 weeks, extendable by a month, ensuring financial stability during childbirth.
- Dependents’ Benefit: In the unfortunate event of an employee’s death due to employment injury, 90% of the employee’s wages are provided to their dependents as a monthly payment.
- Temporary Disablement Benefit: Employees suffering from an employment injury receive 90% of their wages as a benefit until the disability lasts.
- Permanent Disablement Benefit: In cases of permanent disability, employees are entitled to a monthly payment of 90% of their wages based on the loss of earning capacity as assessed by a Medical Board.
- Funeral Expenses: A fixed sum of Rs. 15,000 is provided to the dependents or the individual conducting the last rites, assisting with funeral expenses.
Documents Required for ESI Registration
The following documents are required for ESI (Employee State Insurance) Registration, and they should be provided in digital or electronic format for online registration on the ESIC website:
For the ESIC registration online process, businesses are not required to submit physical documents. The necessary documents to be uploaded during the online registration include
- Business Registration Proof: One of the following based on the business type:
- Factories Act Registration Certificate.
- Shops and Establishment Act Registration Certificate.
- Establishment Incorporation Certificate, applicable as per the entity type:
- Company Registration Certificate for companies.
- Partnership deed for partnership firms.
- Goods and Services Tax (GST) Registration Certificate of the establishment.
- Company�¢??s Founding Documents:
- Memorandum of Association (MoA).
- Articles of Association (AoA).
- Establishment�¢??s Address Proof: One of the following can be provided:
- Recent utility bill (electricity, gas, or telephone not older than three months).
- The rental agreement for the establishment’s premises.
- Property tax receipt for the establishment’s location.
- Employee Details: A comprehensive list of all employees at the establishment.
- PAN Cards: PAN details of the business and all employed individuals.
- Employee Compensation Details: Information on the salary/wages of all employees.
- Banking Information: A cancelled cheque from the company’s bank account.
- Company Leadership Details:
- List of the company’s directors.
- List of the company�¢??s shareholders.
- Employee Attendance Register: Maintaining a record of employee attendance.
Compliances After ESIC Registration
After ESI (Employee�¢??s State Insurance) registration, an establishment must adhere to specific compliances and file requisite ESI returns. These obligations are crucial for ensuring seamless operation and adherence to regulatory standards. The mandatory compliances include:
- Attendance Register Maintenance: The establishment must diligently maintain an attendance register to record the attendance of all employees. This serves as a fundamental document for compliance and internal record-keeping.
- Register of Wages: A comprehensive register of wages for workers should be meticulously maintained. This register is vital for transparent documentation of salary details and ensures compliance with ESIC regulations.
- Inspection Book: An inspection book must be kept to record any inspection on the premises. This facilitates transparency and regulatory compliance during official inspections.
- Monthly Return and Challan Submission: The establishment must submit monthly returns and challans within the first 15 days of the succeeding month. This includes providing details of employees, their attendance, and the corresponding contributions to the ESIC.
- Accident Register: A register documenting accidents on the premises is mandatory. Accurate recording of accidents is essential for compliance. It facilitates a proactive approach towards workplace safety.
ESIC Registration Online Process
The process for ESIC registration has shifted from a manual to a completely online system, making it more accessible and efficient. Businesses looking to register under ESIC can now complete the entire process through the official ESIC portal. For those who find navigating online registration a challenge, SRN Filings offers expert assistance. Our team is well-versed in the intricacies of the ESIC online portal and can guide you through each step, ensuring a smooth and successful registration for your business.
Why Choose SRN Filings for ESI Registration?
SRN Filings’ team of seasoned professionals, including chartered accountants and legal experts, offers premier legal and compliance ESI PF registration services in India. We recognize the critical nature of an employer’s obligation for ESI registration and approach this task with the highest degree of diligence and attention to detail. Our Employee State Insurance Registration process is streamlined, efficient, and designed to save you time. Transparency is at the core of our service delivery, ensuring you receive regular updates throughout the process. Should you have any inquiries during the ESI registration or filing process, our expert team is readily available to provide you with the necessary support and guidance.