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Employee State Insurance (ESI) Registration

Mandatory for all organisations > 10 employees

Prices starting at Rs. 2500/- (all inclusive)

Employee State Insurance Corporation Scheme

The Employee State Insurance Corporation Scheme provides members financial protection in case of an untimely health-related eventuality. The scheme offers medical benefits, disability benefits, maternity benefits, unemployment allowance, etc.

 To ensure that these workers were protected in terms of health and finances, the Parliament implemented the Employees’ State Insurance Act, 1948 (ESI Act). It was the first major legislation that was meant to garner social security for workers. The ESI Act encompasses health related eventualities which workers are exposed to on a daily basis. This could include any type of sickness, temporary or permanent disability, maternity, diseases contracted from a workplace, death due to employment, and any type of injury that results in the loss of wages or earning capacity. The ESIC Act acts as a financial safety net for workers against these ailments.

When is ESI Required?

ESI Registration is required when a company/firm/organization employs 10 (in few Indian States and UTs, this number is 20) or more persons, and the beneficiaries’ monthly wage does not exceed Rs 21,000 are covered under the scheme.

The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theaters, road-motor transport undertakings and newspaper establishments employing 10 or more persons (in some states it is 20). The Scheme has been extended to Private Medical and Educational institutions employing 10 or more persons in certain States and Union Territories.

ESIC registration is a statutory responsibility of the employers of the factory. It is mandatory according to the rules and regulation of the ESI Act 1948.

Why choose LEGALSAHAYATA?

  • Lowest Price Guarantee
  • No Office Visit
  • No Hidden Cost
  • Legalsahayata charges only on work completion

Contribution

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Documents mandatory for PF registration

Any business that wishes to apply for PF needs to submit the following mandatory documents:

  • PAN card of establishment
  • Certificate of incorporation/Partnership deed
  • Factory License/ Shop act establishment
  • Cross cancelled cheque of establishment
  • Address proof that is in the name of the establishment. It can be:
    • Rent agreement
    • Water
    • Electricity
    • Telephone bill
  • Specimen signature of directors and authorized signatories
  • Digital signature of the authorized applicant
  • In case of voluntary registration, consent of the majority of employees

In some entities the underlying may also be needed:

  • First sale bill
  • First purchase bill of raw material and machinery
  • GST Registration Certificate
  • Bankers details
  • Record of a monthly employee strength
  • Register of salary and wages

To be Submitted by Employees:

  • Family Photo in Duplicate

You just need to collect the mandatory documents and send a copy of each document to us. The rest will be handled by the efficient team of Legalsahayata. From filing the form to verification processes and legal formalities, we handle it all!

Advantages of ESI Registration

  • It provides complete medical benefits
  • It includes dependents
  • It can be used at different ESI dispensaries and hospitals
  • Any payments made will be reimbursed
  • It takes the needs of the disabled into account

FREQUENTLY ASKED QUESTIONS

When an individual joins the company or organization, the employee is mandated to provide their family details along with valid photographs to the employer so that the employer can register the employee and his/her family members online. Once the registration process is completed, a 17 digit employee number will be provided which has to be used throughout the lifetime of the insured. This number should be consistently used even if the employee changes his/her place of employment.

Yes. It is mandatory that an employer who falls within the eligibility bracket of the ESI scheme to register themselves under the ESI scheme under Section 2-A of the Employees’ State Insurance Act, 1948 (ESI Act). The factory, company or establishment should be registered with the ESIC within 15 days from the time the organization is cleared for registration.

Once a company, factory or organization comes under the coverage of the Act, it reaps the benefits of the Act for life. The company or organization does not fall out of coverage if the number of employees reduce or any other reason.

Along with an employee’s wage record, muster roll, and books of accounts, the employer will have to maintain the following as well:

  • An inspection book
  • Accident register in Form 11
  • Employer will have to maintain an employee’s register

The employer of a company or organization will have to file their monthly contributions on the official ESIC portal and this should be done every month. Contributions can also be made through net banking.

  • If the individual is an employee who is employed directly by the employer or is employed in any department of the factory or establishment, in administration, sales, distribution, etc. of products of the establishment or factory.
  • Employed within the premises for work that needs to be done in the establishment or factory.
  • By employees of the immediate employer
  • Employed outside the premises for work that needs to be done in the establishment or factory under the supervision of a principal employer.
  • Employed by the directors of the company
  • Employees who are lent for hire to the principal employer at the establishment or factory.
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