ESI stands for Employee State Insurance and it provides self-financing security social security and health insurance scheme for Indian workers. ESI is an autonomous body under the Ministry of Labour and Employment, Government of India. ESI registration is mandatory for entities and establishment covered under the ESI Act and having 10 or more person employed in such establishment whose salary does not exceed Rs 21,000 per month. ESI registration is the statutory responsibility of the employer.
ESI returns are filed on half-yearly basis on 11th of every November and May. ESI contribution is deposited on a monthly basis on 15th of every month. The purpose of ESI is to provide medical benefits to employee and their family, and to provide monthly income to dependent in case employee death on duty. Once registered under ESI, the registration cannot be cancelled even if number of employees reduces from 10. Once registered will remain active till the lifetime of entity.
Every entity is required to complete ESI registration within 15 days from the date of applicability of the same. ESI online registration should be done as soon as the number of employees exceed ten and the salary drawn is less than Rs. 21,000.
Workforce prefer to work in an entity which is registered under ESI since it provides benefits to employee and coverage in many unfavourable situations like death on duty. ESI registration increases the entity’s credibility and boost morale of employees.
ESI offers host of services like medical benefits, sickness benefits, maternity benefits, dependent benefits, and death & disablement benefits. Employee share wef from 1st July 2019 is 0.75% of gross salary and employer contribution is 3.25 % of gross salary.
Basic purpose of registration is to provide basic health expenses coverage to employee who draw less salary. However, under the Rajiv Gandhi Shramik Kalyan Yojana, unemployment allowance is payable to an insured person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment, or permanent invalidity.
Arrange and provide basic documents as per the list provided by us.
Make the payment of registration fees
An application is to be filed online
Get the ESI Registration certificate
ESI stands for Employee state insurance. This scheme is regulated by the ESIC Act of 1948. ESI Registration is maintained by Labour welfare Organization name ESIC. The basic aim of ESI registration is to provide benefits to the employee in case of Sickness, Maternity, Disablement and death.
All Factories and establishment as defined under the act having 10 or more employee drawing salary less than Rs 21,000 are required to obtain the registration under ESI.
ESI registration online is possible via the link https://registration.shramsuvidha.gov.in/user/login. Download the ESI registration manual for establishment registration and follow the steps given in the manual.
ESI Act requires establishments to register within 15 days if employee strength reaches 10. Failure to comply with the provision can invite penalty, and it also amounts to criminal offences which is punishable under section 85 of the act.
ESI is deducted on the Gross salary of the employee. Employee contribution is 0.75% of gross salary while employer contribution is 3.25 %.
ESI payment needs to be deposited by 15th of every month. ESI return is filed on a half-yearly basis, and the due dates are 11 May and 11 November.
Registration under ESI cannot be cancelled until and unless the entity winds up the business and closes down. ESI Commissioner can consider special cases where employer undertake that there is no employee left, and in future, no employee will be hired. After the presentation of all relevant documents to the satisfaction of the commissioner, cancellation may be granted.
Once registered under ESI, all the compliances need to be done in spite of the fact that the number of employees reduces from 10.
All the employees that are covered under the ESI registration scheme are entitled to a family pension.
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