Who is liable to get GST Registration

Employee's State Insurance

Employees' State Insurance Corporation (abbreviated as ESIC) is one of the two main statutory social security bodies under the ownership of the Ministry of Labour and Employment, Government of India, the other being the Employees' Provident Fund Organisation. The fund is managed by the Employees' State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.

The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated, need based social insurance scheme,that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents. Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to administer the Scheme.

Applicability of the Act

It is applicable to all establishments having 10 or more workers & has been extended to other undertakings & newspaper establishments employing 20 or more persons.

ESI shall be deducted only for those employees whose wages are less than 21000/- per month, engaged directly or through contractors.

Contribution

Under ESI, employers shall submit ESI on behalf of Employee share of ESI and Company share of ESI, towards their employees and the employee share is deducted from their salary or wages. According to the PF Act, It is mandatory that the basic salary is minimum 55% of gross salary. Employees should contribute 1.75% on gross salary and employer contribution is 4.75 %. Employees in receipt of a daily average wage up to Rs.137/- are exempted from payment of contribution.

Employee State Insurance is an insurance and social security scheme for Indian workers. ESI Act 1948, which created ESI Corporation is an autonomous corporation under the Ministry of Labour and Employment.

ESI offers medical care or insurance benefits for the insured employees and their family members via its branches, dispensaries, and hospitals throughout India. Your employees get medical care and treatment for themselves and for their families.

For small business registration, ESI Scheme brings comprehensive employee security that protects your employees during sickness, injury, and disability.

Employees registered for ESI will get high-quality medical facilities like medical assistance, surgical support, obstetric treatment, free drugs, ambulance services, super-specialty consultation, etc. Also, registered patients are entitled to sick pay benefits.

All establishments employing 10 or more employees at any point of the year have to get registered under ESI Act, provided the salary payable to at least one employee is less than Rs 21,000. Once registered the firm is assigned a 17-digit unique identification code.

ESI Compliance

Business covered under ESI, must file an annual return reflecting changes (if any) through the previous year. Return of contributions should be filed once every six months attaching copies of all ESI contributions during the filing period.

ESI Norms

For employees with wages/salary of Rs 21000 or less, the employer contributes 4.75 percentages and the employee contributes 1.75 percentages, to the total premium from his/her wages/salary.

ESI Deadline

The employer must pay all ESI contributions to a bank account authorized by the ESI Corporation within 15 days of the last day of the month in which ESI payment is due.

Key Features & Benefits of ESI

There are a number of attractive features and benefits that are offered by the Employee State Insurance Corporation. Not only does it provide medical benefits but it also comes with a level of financial security in times of financial hardship like unemployment, etc.

Some of these are listed below:

Medical Benefits - The Employee State Insurance Corporation takes care of an individual's medical expenses by providing reasonable medical care. This cover comes into effect from day one of the individual's employment.
Disability Benefit - In case an employee is disabled, ESIC ensures that the employee is paid their monthly wages for the period of the injury in case of a temporary disablement or for the remainder of the employee's life in case of a permanent disablement.
Maternity Benefit - ESIC helps an employee welcome their baby to a household by providing a lot of benefits. ESIC provides a total of 100% of the average daily wages for a period of to 26 weeks from the time of going into labor and 6 weeks in case of a miscarriage. 12 weeks of pay is provided in the case of an adoption.
Sickness Benefit - ESIC ensures that the employee is adequately compensated even during medical leave. 70% of the average daily wages of an employee is paid during medical leave for a maximum period of 91 days in two successive benefit periods.
Unemployment Allowance - ESI provides a monthly cash allowance for a maximum period of 24 months in case of permanent invalidity due to a non-employment injury or due to involuntary loss of employment.
Dependent's Benefit - In case the employee meets with an untimely death due to an injury at the place of employment, ESIC will provide monthly payments apportioned among the surviving dependents.
Other benefits that are offered with ESI are: 1.Confinement Expenses
2. Funeral Expenses
3. Physical Rehabilitation
4. Vocational Training
5. Skill Upgradation Training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

Registration Procedure

Send us Your Document Copies - Scanned copies of address and identity proofs; rent agreements, TAN, PAN, MOA, bank statement/cancelled cheque, employee's details and other documents need to be provided to us.
Preparation of the Application form - Our team will prepare your ESI application meeting all requirements.
Submission to Employees Provident Organisation - The duly filled EPF application form will be submitted at EPF India for processing and allotment.
Allotment - Once an application is submitted the ESIC allotment will be done within a day.

Documents Required

General Documents

Pan card copy of all directors/partners/proprietor
Company pan card copy of pvt ltd / llp / partnership firm
Rental agreement and electricity bill
bank statement or cancelled cheque
Address proof copy of all directors/partners/proprietor
Photo copy of all directors/partners/proprietor
Employees details

Additional Documents Required

For Private Limited Company

MOA & AOA
Certificate of incorporation

For LLP

LLP agreement
Certificate of incorporation

For Partnership Firm

Partnership registration certificate
Partnership deed

FAQ

How frequently do I need to make ESI contributions?

ESI contributions must be made monthly. Employers need to deposit the contributions by the 15th of every month for the previous month’s wages.

Can I get ESI registration for multiple branches or units of the same company?

Yes, ESI registration can be obtained for multiple branches or units of the same company. Each unit or branch will require a separate registration, and a unique code will be assigned to each.

How can an employer make ESI contributions?

Employers can make ESI contributions online through the ESIC Portal. Payments can be made using internet banking, NEFT, or through any designated bank branch.

Can an individual register for ESI voluntarily?

Yes, self-employed individuals or those with irregular income can voluntarily register under ESI by approaching the nearest ESIC office, though they are not legally required to do so.

What should an employer do if the number of employees falls below the threshold for ESI registration?

If the number of employees falls below the minimum threshold (10 employees), the employer can apply for de-registration from the ESI scheme. The employer must notify the ESIC about this change.

Is ESI applicable to all sectors?

ESI applies to establishments in the non-seasonal sectors such as factories, shops, hotels, restaurants, cinemas, and transport establishments. Certain sectors like mines and oilfields have separate social security schemes.

Can an employee contribute to the ESI scheme after leaving an establishment?

Once an employee leaves an establishment, they cease to be covered under ESI. However, they may be eligible for the benefits based on their previous contributions if they have contributed to the scheme for a minimum period.

How do employees access medical benefits under ESI?

Employees registered under ESI can access medical benefits through ESIC-run hospitals or empaneled private hospitals. They are also entitled to medical care for their dependents, including spouses, children, and parents.

Is there a renewal process for ESI registration?

Once registered, the ESI registration is valid for the lifetime of the establishment. However, any change in the establishment's details, such as address or employee count, must be reported to the ESIC to ensure compliance.

What should an employer do if they have more than one ESI registration?

If an employer operates multiple establishments, each branch or unit will require its own registration. However, the employer may apply for a consolidated code for ease of contribution payment if they meet certain criteria set by the ESIC.

What is the role of the Employee State Insurance Corporation (ESIC)?

The ESIC is the statutory body that manages and administers the ESI scheme. It oversees the contributions, disburses benefits to employees, maintains records, and ensures compliance with the provisions of the ESI Act.

Are all employees eligible for ESI benefits?

Employees with a monthly wage of up to Rs. 21,000 (Rs. 25,000 for employees with disabilities) are eligible for ESI benefits. However, employees working in non-eligible establishments, government employees, and employees whose wages exceed the wage ceiling are not covered by the scheme.

Who needs to register under ESI?

Any establishment (including factories, shops, hotels, restaurants, etc.) that employs 10 or more employees and has employees drawing a salary of up to Rs. 21,000 per month (Rs. 25,000 for persons with disabilities) needs to register under the ESI Act. Registration is mandatory for employers who meet this threshold.

What is Employee State Insurance (ESI)?

Employee State Insurance (ESI) is a social security and health insurance scheme for Indian workers. It provides medical, maternity, disability, and death benefits to employees and their families in case of illness, injury, or accidents. The scheme is managed by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment, Government of India.

What are the penalties for non-registration or late payment of ESI contributions?

Failure to register under ESI or delayed payment of contributions can lead to:

Penalties and fines as per the provisions of the ESI Act.
Interest on delayed contributions.
Legal action by ESIC, which may result in a case against the employer.

Is ESI registration mandatory for all establishments?

ESI registration is mandatory for all establishments with 10 or more employees (except in some specific cases where the employee strength may differ). However, if the average monthly wage of an employee exceeds Rs. 21,000 (Rs. 25,000 for employees with disabilities), they are not covered under ESI, although the employer must still contribute to the scheme for other eligible employees.

What documents are required for ESI registration?

The following documents are typically required:

Proof of business (e.g., business license, incorporation certificate).
Proof of address (e.g., utility bill, rent agreement).
PAN card and other identity proof of the employer.
Employees’ details, including their wages, PAN, and address proof.
Bank account details of the establishment.

How is the ESI contribution calculated?

The ESI contribution is based on the wages paid to employees. The contribution rate is:

Employer’s contribution: 3.25% of the employee’s gross monthly wages.
Employee’s contribution: 0.75% of the employee’s gross monthly wages.

What is the process for ESI registration?

The steps to register for ESI include:

Online Application: Employers must submit an online application for ESI registration through the official ESIC Portal.
Submission of Documents: The employer needs to provide required documents like proof of establishment, details of employees, and proof of salary.
ESI Code Number: Once the application is processed, the establishment is issued a unique ESI Code Number, which is used for contributions and compliance.
Display of ESI Code: Employers are required to display the ESI code number at the workplace.

What are the benefits of ESI registration for employees?

Registered employees are entitled to the following benefits:

Medical Benefits: Comprehensive medical care for employees and their families, including hospitalization, surgeries, etc.
Sickness Benefits: Cash benefits during sickness and recovery periods.
Maternity Benefits: Benefits for female employees during maternity leave.
Disablement Benefits: Compensation for employees who suffer from accidents or disabilities.
Dependents’ Benefits: In case of death due to employment-related accidents, dependents receive financial benefits.
Funeral Expenses: A lump sum amount is provided for funeral expenses in case of the death of an insured person.

Employee State Insurance Registration in India

Ensure employee welfare with fast and reliable ESI registration services

We work with the best platforms to deliver reliable, compliant solutions