What Is ESI Registration?

Employee State Insurance (ESI) is administered by the Employee State Insurance Corporation, which is an autonomous body under the Ministry of Labour and Employment, Government of India. The employer provides this as an initiative for its employees, and it comes as a financial, medical, and other benefits such as reimbursements.

Currently, any establishment, industry or organization that has more than 10 employees and a minimum investment of Rs. 21,000 has to compulsorily register with the ESIC. We have discussed all the details related to ESI registration process and documentation.

 Benefits Of ESI Registration Process Include

• Medical Benefits: Total health reimbursement for insured persons and their relatives without any expenditure maximum.
  
  
• Maternity Benefits: Women are entitled to paid maternity leave, with the option to extend based on medical advice.
  
  
• Death of a Worker: 90% of the insured person's salary is paid to their family if the worker dies while working.
• Funeral Expenses: For an insured employee, Rs. 10,000 is given for the funeral expenses.
  
  
• Senior Health Benefits: Medical care and benefits to retirees and older.
  
  
• Disability Benefits: Monthly payments of insurance benefits for insurance participants who become permanently disabled.
  
  
• Sickness Benefits: 70% of salary for sickness lasting more than 91 days in a year, certified.
  
  
• Unemployment Benefits: People insured for over three years are entitled to unemployment benefits.
  
  
• Penalty for Non-Compliance: Penalty for Non-compliance with ESIC regulations, such as online employer registration and filing of ESI return – INR 10,000

Taxation For ESI Registration

• Eligibility: ESI covers establishments with 10 or more persons earning up to ₹21,000 per month (₹25,000 in respect of a person with disability).
  
  
• Employer’s Contribution: The employer pays 3.25% of the worker’s monthly wages.
  
  
• Employee’s Contribution: The employer pays 0.75 per cent of the monthly wages of the employee.
  
  
• Taxable Wages: ESI is deducted from the combined wages which are considered as gross salary, and include a basic salary, bonus, allowances, and other types of earnings upto the wage limit.
  
  
• Payment Frequency: Payments must be made monthly through the ESIC portal.
  
  
• Late Payment Penalties: Late payments will attract a penalty/interest as per the rules of ESIC.
  
  
• ESI Benefits: Persons covered under ESI aggregate benefits like medical care, maternity benefits, and benefit during sickness, benefits in the case of disability and death benefits.
  
  
• Exemption: ESI contribution exemption for employees earning above the wage limit

Documentation for ESI Registration:

• Certificate of Registration under Factories Act or Shops and Establishment Act
• For companies: Registration certificate
• For partnerships: partnership deed.
• Copy of the Bank Statement.
• License copy in the name of establishment
• Articles and Memorandum of Association for Companies
• Details of all staff member employed in the establishment.
• Copy of the Electricity Bill.
• Copy of Rent/Lease Agreement.
• PAN Card of Business Entity and all Employees working for the entity.
• Copy of Board Resolution.
• Salary details of all employees.
• Cancelled the check from Company's Bank Account.
• Name of the directors of the Company
• View the Company’s Register of Members.
• Employee attendance register.

Besides the mentioned documents, some other information needed is ESI registration:

• Employee Insurance Number.
• Date of Appointment.
• In case an employee is not registered with ESIC:
• Name of the employee.
• Father/ husband name of concerned employee.
• Date of Birth.
• Date of appointment.
• Nominee details (name, address, mobile number, email ID, relationship details, etc).
• Account Details (e.g., account number, branch, bank, IFSC code, etc.).
• Employer code number.
• Previous employer compensation details.
• Previous employer name.
• Previous Employer's Insurance number.
• Telephone number of last employer.
• Previous employer and address of previous employer
• Current employer: Brief description of the employer for the audience.
• Employer code number.
• Employer Insurance number.
• Name of the current employer.
• Where to find your present employer.
• The employee's contact number.

ESI Registration Process:

Step 1: Registration

• Register on the ESIC Portal
• Employers must login through ESIC portal for employers from their end.
• Select Sign Up under the Employer Login.
• Complete the form and hit Send.

Step 2: Confirmation Mail

• A confirmation email will be sent to the registered email ID and mobile number.
• The Email will provide the User name and password related to employer and employee registration under ESIC scheme.

Step 3: Form-1 of Employer Registration

• Use the username and password provided to log into the ESIC portal.
• Choose 'New Employer Registration' from its drop-down list.
• Select the ‘Type of Unit’ and press ‘Submit’.
• Provide details on 'Employer Registration – Form 1' on the unit/ employer and employees.
• Fill in the form and select 'Submit'.

Step 4: Registration Fee Payment

• And after submission of Form-1, it will be redirected to the page of 'Payment of Advance Contribution'.
• Enter the amount to pay and choose a payment method.
• Make a six-month advance payment.

Step 5: Registration Letter

• After payment an employer will receive a system generated Registration Letter (C-11) with 17 digit Registration Number.
• This letter is a proof of registration.

Step 6: Compliance after Registration under ESI

• Keep a roll call for attendance.
• Maintaining the ledger of salaries for the workers.
• Maintain an inspection book.
• Filing returns and challans by 15th of the next month.
• If you have a record for work accidents, keep it.
  

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